Persels & Associates, LLC, Robert R. Gillispie and K. David Bradley, Jr. v. Capital One Bank, (USA), N.a., Citibank…

Summary

The Kentucky Supreme Court held that limited-representation or “unbundled” legal-services agreements are permissible when reasonable under the circumstances, reduced to writing, based on informed client consent, and consistent with applicable procedural and ethical rules. Because attorneys providing such assistance need not sign pleadings when they are not attorneys of record, the court held that CR 11 sanctions based solely on their failure to sign were improper and remanded for a determination of the agreements’ reasonableness. The court also explained that unreasonable agreements may support contract, ethical, or other appropriate remedies, but not CR 11 sanctions merely because the drafting attorney did not sign the pleading.