Attorney Fees / Retainer Agreements / Billing / Fee Collection

Question 1

Rule 1.5(b)

Answer 1

In all new client situations:

1. The scope of the representation; and,
2. The basis or rate of the fee (along with the expenses for which the client will be responsible);
3. Shall be communicated to the client;
4. Preferably in writing;
5. Before or within a reasonable time of commencing the representation

Question 2

Elements of a Good Fee Agreement

Answer 2

• In writing
• Terms are clear and concise
• Language is plain English No legalese
• No unethical/illegal terms

Question 3

Unethical/Illegal Provisions

Answer 3

• High interest rate on overdue fees
• Impermissible conflict waivers
• Impermissible liability waivers – civil and disciplinary
• Impermissible waiver of requirement to keep client property separate

Question 4

The Factors of Reasonableness

Answer 4

1. Time + Labor + Difficulty of skill required;
2. Acceptance preclude other employment;
3. Customary fee for the services in legal community;
4. The amount involved + results obtained;
5. Time limitations imposed by the client or the circumstances;
6. Professional relationship with the client;
7. Exp, rep, and ability of the lawyer;
8. Whether the fee is fixed or contingent.

Question 5

Rule 1.5(c)

Answer 5

An agreement for a contingent fee must be:

1. In writing; and,
2. Signed by the client.

The agreement must set forth:

1. The method for determining the fee, including the percentage of recovery that will go to the lawyer as the fee; and,
2. Provisions for the treatment of expenses Contingent fees are prohibited in certain kinds of cases:

• Divorce. A fee cannot be contingent upon securing a divorce or on obtaining entitlement to alimony, support, property, or custody. (No pre-J.O.D. contingent fee arrangements).
• Criminal matters

>When seeking a contingent fee arrangement, you must advise the client of the fact of alternative fee arrangements.

>You may not impose a contingency fee on a client who desires another arrangement

Question 6

Rule 1.5(e) – Splitting Fees With Other Lawyers

Answer 6

You may only share fees with a lawyer not in your firm if:

1. The split is in proportion to the services performed by each lawyer;
2. The client has given consent to the split; and,
3. The total fee is reasonable.