3.04 Fees and Client Money

Question 1

SHALL NOT Charge or Collect UNReasonable Fee, Factors

Answer 1

“Answering Three Basic Questions:

Free and Informed Choice?

Within Range Commonly Charged?

Subsequent Change in Circumstances?

a. Time and Labor, Novelty and Difficulty, Skills Required to do Work Properly
b. Likelihood Client, If Apparent to Client, of Preclusion from Other Employment
c. Custom in Locality for Specific Serviced.
d. Amount : Results
e. Limitations Imposed by Clients / Circumstances
f. Nature and Length of Relationship
g. Experience, Reputation, and Ability
h. Whether Fee is Fixed or Contingent

NO Fee Minimums / Price Fixing (Anti-Trust)”

Question 2

Fee Contracts

Answer 2

“Contract or Modification Must Be Made W/N Reasonable Time or Under Reasonable Change in CircumstancesRequirements, PREFERABLY In Writing Communicating: Scope of Representation; Basis or Rate of Fee; Expense Client Will Be Responsible For

EXCEPTION: Regularly Represented Client Under Regular Terms”

Question 3

Expenses Charged to Client

Answer 3

MUST Be Reasonable

Question 4

Contingent Fees

Answer 4

SHALL Be In Writing Stating:

• Percent or Percentages for Settlement, Trial or Appeal, Etc.
• Expense Deducted Before OR After Fee Calculation
• Notifying Expense Client is Liable For Regardless of Outcome

PROHIBITED Contingent Fees:

• Criminal Defense
• Securing a Divorce, Amount of Alimony, or Property Settlement

NOTE: Recovery of Decreed Award NOT Restricted

Question 5

Division of Fees Between Lawyers NOT In Same Firm Requires:

Answer 5

“Total Fee is ReasonableClient Agrees CONFIRMED In Writing AND Division Is: Proportional to Work Preformed OR Each Lawyer Assumes Joint Responsibility”

Question 6

Fiduciary Holdings

Answer 6

Segregation of Clients Property =

• Clients Property and Lawyes Property MUST Be Kept Separately
• Must Be Kept Safely
• Lawyers Funds in Clients Trust Account ONLY for Bank Servicing Charges
• Advance Payments MUST Go To Trust, Paid Out as Earned or Incurred Accounting of Property HandledNotification to ClientDelivery of Property
• Only those portions of property in dispute may be retained in trust account.

Question 7

Lawyer Liens

Answer 7

Rights Vary by Jurisdiction

NOTE: Lawful Lien, i.e. mortgage w/reasonable interest rate. Charging a Lien for Services is the Lawyers Statutory Right in Many Places