client funds and fees

Question 1

what does 1.5(a) say about attoryes fees

Answer 1

they must be reasonble

Question 2

1.5(a) says attys fees must be reasonable – how do we know what reasonable is?

Answer 2

see (a)(1) -(a)(8)

Question 3

how do attys make money

Answer 3

Hourly rate, flat fee, contingency fee

Question 4

what is the rule about what you can charge the client for

Answer 4

expenses for the client’s specific case are permitted, but general overhead costs
are not

Question 5

can you double bill time? why or why not

Answer 5

no you cant; The reasoning is that you wont be as efficient if you are focused on more than one client matter

Question 6

how does 1.5(b) tell us about communication of the fees to client? does that communciation need to be in wirting

Answer 6

requires that the scope of the rep and the basis or rate of the fees and expense be communicated to teh client within a reasonable time after rep starts

a writing is only required if contegency fees are involved

Question 7

what is the 1.5(b) exception to communicating the fees to client

Answer 7

when the lawyer is charging a regularly reped client on the same basis or rate

Question 8

what else needs to be communicated to the client under 1.5b

Answer 8

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

Question 9

what are some pros of the billable hour

Answer 9

Objective account for client, partners, and associates

The alternatives are worse

Burnout is not the billable hours fault, its the fault of the profession

Question 10

what are the cons of the billable hour

Answer 10

Padding hours

Doing indeed work (ie being inefficient) - the billaible hour rewards this

Less incentive to settle a case

Burnout

Clock punching mentality

Question 11

what is the most commonly enforced and violated rule

Answer 11

Rule 1.15: safekeeping property and client trust accounts

Question 12

what does 1.15(a) commingling say

Answer 12

The attorney and the c money cant comingle

Must keep records (5 years after rep concludes)

Client money goes in client trust account

Question 13

what is 1.15(b) excpetion to commingling

Answer 13

Paying bank service charges on client trust accounts

Question 14

what does 1.15a say about safegaruding a clients property

Answer 14

“ Other property shall be identified as such and appropriately safeguarded.”

Question 15

what does 1.15(c) say about advance payments

Answer 15

“A lawyer shall deposit into a client trust account legal fees and expenses that have been paid in advance, to be withdrawn by the lawyer only as fees are earned or expenses incurred.”

Question 16

what is the main question to ask when we are talking about fees

Answer 16

what bucket does the cost fall under

Fee- is it reasonable?
Overhead – not allowed
Expense – is it the actual cost?

Question 17

When is a flat fee earned?
what can you do with a fee that is earned?

Answer 17

If it’s earned at beginning its the attys and they can put in operating account

its also a jurisdiction

Question 18

what is the south Carolina rule on flat fees

Answer 18

1.5 (f) A lawyer can charge an advance fee and “treat the fee as immediately earned if the lawyer and client agree in advance in a written fee agreement which notifies the client… [rule goes on to list what the agreement must contain]”

Question 19

what does 1.15(e) disputed amounts say about the amounts in dispute and the ones not in dispute

Answer 19

disputed? the money should be kept seperate by the lawyer until the dispute is resovled

undisputed – need to dispense it promptly

Question 20

whats the difference between fee splitting and referrals

Answer 20

Fee splitting = Lawyer Kim and Lawyer Jack (different firms) both rep a client in a matter: Kim does X and Jack does Y. Client pays $10k and they split the fee.

Referral fee = Client approaches Lawyer Kim about a personal injury case. Kim is too busy to take the case but refers the client to Lawyer Jack. Jack pays Kim a $300 referral fee

Question 21

can attys in the same firm can share fees

Answer 21

yes

Question 22

when can attys in different firms share

Answer 22

if the 1.5(e) conditions are met

pro rata split or joint responsibility

the client agrees, confirmed in WRITING

and the total fee is reasonable