Chapter 12 Flashcards

1
Q

Rule 1.5: Fees
Client-Lawyer Relationship
Rule 1.5 Fees
(a) A lawyer shall not make an agreement for, charge, or collect an ______ fee or an ______ amount for expenses.

A

unreasonable x 2

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2
Q

Rule 1.5: Fees
Client-Lawyer Relationship
Rule 1.5 Fees - What are the 7 (a) factors?

A

1) time/labor required, novelty/difficulty of ?, requisite skill
2) likelihood of L’s employment preclusion
3) customary charge for same service
4) amount involved/results obtained
5) C’s/circumstances time limitations
6) L’s experience, reputation, and ability
7) whether fixed/contingent

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3
Q

Rule 1.5: Fees
Client-Lawyer Relationship (b) The scope of the representation and the basis or rate of the fee and expenses for which the client will be responsible shall be ______ to the client, ___(3)____, before or within a ____ ___ after commencing the representation, except when the lawyer will charge a ___(3)___ on the same basis or rate.

A

communicated

preferably in writing

reasonable time

regularly represented client

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4
Q

Rule 1.5: Fees

Client-Lawyer Relationship (b) what else should be communicated to the client other than initial billing/fee?

A

Any changes in the basis or rate of the fee or expenses shall also be communicated to the client.

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5
Q

Rule 1.5: Fees
Client-Lawyer Relationship (c) [FIRST PART]

A fee may be __(7)____ for which the service is rendered, except in a matter in which a contingent fee is prohibited by paragraph (d) or other law. A contingent fee agreement shall be in a _____ signed by the client and shall state the _____ by which the fee is to be determined, including the percentage or percentages that shall accrue to the lawyer in the event of settlement, trial or appeal; litigation and other expenses to be deducted from the recovery; and ________.

A

contingent on the outcome of the matter

writing

method

whether such expenses are to be deducted before or after the contingent fee is calculated

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6
Q

Rule 1.5: Fees
Client-Lawyer Relationship (c) [SECOND PART]
The agreement must clearly ____(3)___ of any expenses for which the client will be liable whether or not the client is the _____ ____. Upon conclusion of a contingent fee matter, the lawyer shall provide the client with a written statement stating the ____(4)____ and, if there is a recovery, showing the ___(4)___ and the ___(4)____.

A

notify the client

prevailing party

outcome of the matter

remittance to the client

method of its determination

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7
Q

Rule 1.5: Fees
Client-Lawyer Relationship
(d) A lawyer shall not enter into an arrangement for, charge, or collect a contingent fee in what two situations?

A

(1) Domestic relations (divorce, alimony, support, property settlement)
(2) criminal

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8
Q

Rule 1.5: Fees
Client-Lawyer Relationship
(e) A division of a fee between lawyers who are not in the same firm may be made only if what three things?

A

(1) services are proportional or each L assumes joint responsibility
(2) C agrees - written confirmation
(3) fee is reasonable

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9
Q

Rule 1.15: Safekeeping Property
Client-Lawyer Relationship
Rule 1.15 Safekeeping Property
(a) a L should keep property

A

separate

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10
Q

Rule 1.15: Safekeeping Property
Client-Lawyer Relationship
Rule 1.15 Safekeeping Property
(a) Funds should be maintained where?

A

in the state in which the L’s office is situated, or elsewhere by consent

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11
Q

Rule 1.15: Safekeeping Property
Client-Lawyer Relationship
Rule 1.15 Safekeeping Property
(a) Complete records should be kept for how long?

A

5 years

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12
Q

Rule 1.15: Safekeeping Property
Client-Lawyer Relationship
Rule 1.15 Safekeeping Property
(b) A lawyer may deposit the lawyer’s own funds in a client trust account for the sole purpose of ___(4)___ on that account, but only in an amount ___(4)___.

A

paying bank service charges

necessary for that purpose

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13
Q

Rule 1.15: Safekeeping Property
Client-Lawyer Relationship
Rule 1.15 Safekeeping Property
(c) A lawyer shall deposit into a client trust account ___(4)____ that have been paid in advance, to be withdrawn by the lawyer only as ___(6)____.

A

legal fees and expenses

fees are earned or expenses incurred

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14
Q

Rule 1.15: Safekeeping Property
Client-Lawyer Relationship
Rule 1.15 Safekeeping Property
(d) Upon ____(5)___ in which a client or third person has an interest, a lawyer shall promptly notify the client or third person. Except as stated in this rule or otherwise permitted by law or by agreement with the client, a lawyer shall promptly deliver to the client or third person any funds or other property that the client or third person is entitled to receive and, upon request by the client or third person, shall promptly render a full accounting regarding such property.

A

receiving funds or other property

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15
Q

ABA Standing Committee has said, “contingent fees for defense counsel in civil cases do not violate the Model Rules provided what? (3)

A

the amount saved is “reasonably ascertainable,”

The total fee is reasonable,

and the client’s consent is “fully informed.”

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16
Q

Rule 1.5: Fees
Client-Lawyer Relationship
(d) A lawyer shall not enter into an arrangement for, charge, or collect a contingent fee in what two situations? [6] This provision does NOT preclude a contract for a contingent fee for legal representation in connection with the _____(5)___ under support, alimony or other financial orders because such contracts do not implicate the same policy concerns.

A

recovery of post-judgment balances due

17
Q

Rule 1.5: Fees
Client-Lawyer Relationship
(d) A lawyer shall not enter into an arrangement for, charge, or collect a contingent fee in what two situations? [6] This provision does NOT preclude a contract for a contingent fee for legal representation in connection with the _____(5)___ under support, alimony or other financial orders because such contracts do not implicate the same policy concerns.

A

recovery of post-judgment balances due

18
Q

In Re Everett (Contingent). What can make a reasonable fee subsequently unreasonable?

A

Even if at the time of the CFA, subsequent developments may render collection of the fee unreasonable

19
Q

In Re Everett (Contingent). When is a fee unreasonable?

A
  • if the L gets unconscionable windfall under the totality of the circumstances
20
Q

• ABA Opinon - 93-379

The right perspective is…

A

what the L ACTUALLY EARNED

21
Q

What are some typical examples of fee abuses?

A

○ 1/3 contingent + not much work
○ L billing for work done by assistance
Law is harder on L who springs the high fee on the C w/ no warning after the work is done

22
Q

Lodestar

A

number of hours worked x prevailing market rates

23
Q

Re types of fees. Fee agreement must state that lawyer is entitled to what

A

statutory fees

24
Q

1.5 states that fees must be reasonable, but what else must be reasonable?

A

expenses

25
Q

In Re Sather (Fixed Fees) • L earns fees only by ___(4)_ or ____ _____ in exchange for the fee

A

conferring a benefit on

performing service

26
Q

In Re Sather (Fixed Fees) Unless agreement expressly states fee is engagement retainer and how fee is earned upon receipt, the presumption is

A

that advance for specified legal service

27
Q

In Re Sather (Fixed Fees) L cannot enter into ____ retainer or fee agreements because (1) circumstances can change (2) misleads client (3) deter from exercising right to refund unearned fees

A

“non-refundable”