Paperwork squabble threatens bill to protect lawyers clients
Enacted in 15 other states, a proposed consumer safeguard faces obstacles in Oregon.
In 2019, when Portland attorney Lori Deveny was indicted for allegedly stealing millions of dollars from her clients, it was just the latest instance in which an Oregon lawyer was accused of improperly diverting settlement cash into their own pocket.
Now, a consumer protection bill designed to curb the unsavory practice faces an uncertain future despite strong support from the Oregon State Bar, the quasi-governmental organization that regulates lawyers.
The bill s premise is simple. It requires that when an insurer pays a settlement to a client s lawyer, it alerts the client it has done so.