E. Fees Flashcards
How should Lawyer charge fees to Client?
Actual cost of special services
- Computer research
- Secretarial overtime
Disclose basis for charges
NOT unreasonably high fee
NOT unreasonably high amount for expenses
NOT ordinary overhead expenses
What factors are used to determine ‘reasonable’ fees?*
Time + Labour!!!
Novelty + Difficulty of questions involved
Skill
Preclusion from other work!!!
Other Lawyers’ charges!!!
Lawyer’s reputation + ability
Fixed/Contingent fee
NOT unreasonable gambles!!!
What are the rules for collecting and financing Lawyer fees?*
Payment in advance allowed!!!
- Must refund unearned part of advance if fired/withdrawal
Accept property in return for services!!!
- NO proprietary interest subject to litigation!!!
Avoid agreement that may cut off services during relationship
Pay by credit card/interest-bearing promissory note/lien (if local law allows)
What are the rules for contingency fees?*
1) Reasonable (in Client’s favour)!!!
2) In writing + Signed by Client!!!
3) NOT for criminal/domestic relations!!!
- E.g. Divorce/Alimony/Property settlement!!!
- UNLESS past due support payments (debt)!!!
What are the rules for fee disputes?
Lawyer can use;
- Lien (common law/statutory charging)
- Retaining lien (retain docs/funds/client’s property)
NOT illegal collection methods
NOT improper use of confidential info
NOT harass client to obtain compensation
When may Lawyer (A) split fees with another lawyer (B) in different firms?*
a) B must be A’s partner/associate
b) B must be former partner/associate + there must be separation/retirement agreement
c) Such conditions must be met;
1) Share is proportional to A’s services/other proportion if each lawyer assumes joint responsibility!!!
2) Client consents to split ‘in writing’ => Must disclose each lawyer’s entitled shares!!!
3) ‘Reasonable’ total fee!!!
When may Lawyer split fees with another Lawyer in same firm?*
a) Fee is ‘death benefit’ payable under agreement between deceased lawyer + his firm!!!
b) Fee is ‘purchase price’ for sale of deceased/disabled/disappeared lawyer’s practice
c) Fee is paid into ‘retirement/compensation plan’ for firm employees!!!
d) Fee is paid to non-profit organisation which hired/recommended the lawyer
UNLESS Lawyer is ‘Employee-Lawyer’ => Split fees allowed!!!
When must Lawyer communicate fee arrangement to Client?*
Within reasonable time after representation commences!!!
UNLESS Lawyer regularly charges Client on same basis/rate in subsequent matters!!!
Is Written Fee Arrangement required?*
NO
- Preferred, NOT required!!!
What must Lawyer disclose in Contingent Fee Written Agreement?*
Method of fee calculations
Deducted expenses from recovery
Deducted expenses to be made before/after contingent fee calculations
Is Lawyer entitled to any payments if terminated and NOT awarded contingent fee yet?*
Termination with cause
- NO entitlement to payment
Termination with NO cause
- Entitlement to reasonable amount for services!!!
When may Lawyer split fees with Non-Lawyers?*
Payment of death benefits to Lawyer’s estate/specified persons!!!
Payment to deceased/disabled Lawyer’s representative
- Following purchase of deceased/disabled Lawyer’s law practice (Law Firm’s assets)!!!
Payment of compensation (earned fees) + retirement plans to Non-Lawyer employees!!!
- Even if based on profit-sharing arrangement
Sharing of court-awarded legal fees with Non-Profit Organisation
- Lawyer must be employed/retained/recommended employment by Non-Profit Organisation!!!
