Duty to Make Reasonable Fee Arrangements Flashcards
Communication of Fee Agreements to Client
When the lawyer has not regularly represented the client, the fee must be communicated to the client, preferably in writing, before or within a reasonable time after commencing the representation
Providing Financial Assistance to Client (ABA)
A lawyer must not provide financial assistance to a client in connection with litigation, except that:
(i) a lawyer may advance court costs and expenses of litigation, the repayment of which may be contingent on the outcome of the matter; and
(ii) a lawyer representing an indigent client may pay court costs and expenses of litigation on behalf of the client.
Providing Financial Assistance to Client (CA)
The California rule also limits financial assistance, but it:
(i) applies in all contexts, not just in litigation;
(ii) it explicitly prohibits a lawyer from “buying” a potential client with a promise to pay the potential client’s personal or business debts; and
(iii) unlike the ABA Rule, permits a lawyer to lend money to her client for any purpose after the lawyer is hired if the client gives her a written promise to repay the loan.
Reasonable Fees (Rule, ABA and CA)
There are a number of factors in determining a reasonable fee, including difficulty of the matter, the prevailing fees in the locale, how much time and business a lawyer must give up to take the case, and the like.
Contingent Fee Requirements
A contingent fee offer must warn a client that they must still pay costs even if they lose the case, and a contingent fee can be calculated in two different ways: either on the gross recovery; or after costs are deducted. The method of calculation must be disclosed in writing.
Contingent Fee Prohibitions (ABA v. CA)
Under the ABA rules, contingent fees are prohibited in domestic relations matters and in the representation of defendants in criminal cases, but in California, contingent fees are permitted in domestic relations matters so long as they do not encourage divorce.
Splitting Fees with Non-Attorney (ABA)
Under the ABA rules, a lawyer may split her fee with another attorney, as long as she obtains her client’s consent, it does not increase what the fee otherwise would have been, and the fee is proportional to the work done.
Splitting Fees with Non-Attorney (CA)
. In California, to split a fee with another attorney, the lawyer must obtain her client’s informed written consent, but, unlike the ABA Model Rules, there is no proportionality rule, so that any fee split is permitted if it does not increase what the fee otherwise would have been.
