Duty of Financial Resp. to Client

Question 1

Regular Fee Arrangement

Answer 1

must have arr. w/ reasonable detail [CA: written if > $1,000]

Exceptions for regularly rep’d clients, like a corp

Question 2

Contingent Fee Arrangement

Answer 2

Writing w/ (i) % [CA limits for med mal], (ii) expenses to be deducted, (iii) if expenses before or after % [CA: also that fees negotiable and how other fees handled]

None in criminal or domestic relations

Fired before judgment: get fair value of services in quantum meruit

Question 3

All Fees and Double Billing

Answer 3

Fees must be reasonable [CA: not illegal or unconscionable at the time]

Double billing unreasonable + dishonest [CA: ok if not unconscionable + disclosed + written consent]

Question 4

Fee Splitting

Answer 4

w/ firm = ok

w/ lawyers = ok if reasonable + prop. to work done + written agreement + written consent [CA: referral fees okay if not exclusive + written agreement + written consent, no need to be prop.]

w/ non-lawyers = generally no w/ reasonable exceptions

Question 5

Third Party Pays Fees

Answer 5

OK if (i) informed consent, (ii) doesn’t affect independence of lawyer and (iii) confidential info remains protected

Question 6

Dispute Over Payment

Answer 6

Arbitration clauses enforced

Client can force arb. anytime

Question 7

Partnership with Non-Lawyer

Answer 7

NO. Can’t have non-lawyer owner, director, officer or have right to control

Question 8

Safeguard Property

Answer 8

must use client trust account (interest to client, pooled interest to state) and get consent re spending

must hold ledgers for 5 years post final distribution