Nonrefundable fees land Burbank attorney in hot water with State Bar

The State Bar filed disciplinary charges against a Burbank attorney for charging nonrefundable fees. The bar said the case was one of a growing number in which attorneys are accused of charging nonrefundable fees.

“For California lawyers, a fee agreement can designate a fee as nonrefundable only if it is paid as a true retainer, meaning the client is paying the fee to ensure that the lawyer is available to them for a specific time or on a specified matter, and not as compensation for legal services performed or to be performed,” George Cardona, State Bar chief trial counsel, said. “Otherwise, it is a violation to designate an advance payment as nonrefundable because it may mislead clients into believing that they cannot seek a refund if the lawyer does not do work sufficient to earn all of the advance payment.”

Burbank attorney Raoul J. Sever is accused of 28 misconduct violations pertaining to criminal and civil representation for 12 clients, as well as the improper designation of advance payments for legal services as nonrefundable deposits by fee agreements he entered into with clients and their family members. State Bar v. Severo, SBC-24-O-30031 (State Bar Court Feb. 12, 2024)

Severo did not respond to requests for comment. Susan Margolis of Margolis & Margolis has defended Severo in previous proceedings but said she was not representing Severo “in the pending proceeding.”

Severo has a long history of disciplinary problems, according to State Bar records. He was admitted to the bar in December 1977. In May 1981, he received an interim suspension and was disbarred in 1986. His bar card was restored in 1990 but he was the subject of disciplinary actions in 1997, twice in 1998 and was suspended from practice after failing a professional responsibility exam. Five months later, his license was restored. Between December 2001 and June 2002, he was hit with four separate disciplinary charges. In November 2003, one of those charges resulted in suspension from practice for five years but he didn’t regain his license to practice in California again until 2012, according to the bar.