4.1 Legal Referral
When the Legal Division retains you to provide services for a
particular case or matter a legal referral will be made to you. A
legal referral generally is for one matter but may encompass one or
more “legal matters.” For example, a legal referral may encompass
litigation of a particular case, assistance with a subsequent
appeal, and/or a related bankruptcy case. As stated in
Chapter 3, FDIC’s execution of an LSA with your firm does
not constitute a legal referral and is not a guarantee that you will
receive legal referrals from the FDIC.
The Legal Division reserves the right to terminate a legal referral
or legal matter for any reason, including unsatisfactory
Chapter 1, Section 1.12. In addition, you may not
subcontract any legal work referred to you without prior written
authorization of your Oversight Attorney.
4.2 Referral Letter
The referral letter identifies
the specific services requested and
the terms and conditions of the legal referral. The referral letter
incorporates several documents, including your LSA, the Deskbook and
the case/matter budget(s) which are required to be submitted by the
Outside Counsel and approved by the Legal Division. The incorporated
documents, as well as the referral letter, may be amended or
At the time the legal referral is made, you must confirm that no
material changes have occurred that affect the representations and
conflicts certifications contained in the application package
submitted to the Legal Division.
4.3 Byrd Amendment -- Legal Referrals Over $100,000
If the amount of the approved case/matter budget(s) exceeds $100,000,
you must comply with provisions of the Byrd Amendment.
Byrd Amendment requirements and applicable forms.
4.4 Legal Division Participation
When making a legal referral, the Legal Division reserves the right
to participate in or to assume complete responsibility for any
matter referred to you. This may include providing you with prior
briefs and research, or staffing a matter jointly with you.
4.5 Selection of Outside Counsel
The Legal Division attempts to select Outside Counsel on a
competitive basis whenever possible. When retaining Outside Counsel
to perform legal services, the Legal Division considers several
The experience of Outside Counsel in the type of legal work required to be
The geographic location of Outside Counsel.
The capacity of Outside Counsel to handle the anticipated volume of work.
Whether the fees or rates proposed by Outside Counsel are competitive in
comparison to other firms’ rates. Whether the proposed rates reflect discounts.
Whether FDIC payments to the firm exceed or are approaching the limits the FDIC
has established for eligibility to receive new referrals.
Whether provision of legal services by Outside Counsel would constitute or
give rise to an actual or potential conflict of interest or the
appearance of a conflict of interest. Refer to
Whether the firm has a reputation for competence, integrity, cost
effectiveness and cooperativeness.