Fee Agreements Flashcards
ABA Requirements of Fee Agreements
Describes:
1. How Fee is Calculated
2. Nature of Services
3. L’s Responsibilities
ABA Rule on Fees
May not be unreasonable after considering:
1. Type of Fee
2. Opportunity Costs
3. Amount involved/results obtained
4. Time Pressures
5. Nature and Length of Relationship
6. Experience, Rep., and Ability of L
7. Time, Labor, Novelty, Difficulty of Matter
CA Rule on Fee Agreements
Same as ABA Except if >$1000 must be in writing unless:
1. Corporate Client
2. Emergency Representation
3. Client Waiver of Writing Requirement
4. Previous Client + Similar Service
5. Writing is Impractical
CA Rule on Fees
Fees may not be unconscionable considering:
1. Sophistication of L and C
2. Amount of fee
3. Whether L obtained informed consent
4. Whether L Disclosed Material Facts
5. Whethe L engaged in overreaching or fraud
Double Billing: CA vs. ABA
ABA: Not allowed
CA: Allowed if:
1. not unconscionable
2. L discloses practice at outset of relationship
3. L obtains consent of both clients
Contingency Fee Agreement Requirements
Generally permitted if:
1. In writing
2. Signed by Client (*CA: and L)
3. Basis for fee is disclosed
4. Explains expenses to deduct and when they will be deducted *
5. *CA: how client will be charged for work not covered by contingency
6. CA: statement that L’s % is not set by law and can be negotiate**
Requirements at end of Contingent Fee Arrangement
L must give client a written statement showing the outcome of the case and the remittance to client and how it was calculated
Contingent Fee Arrangements Not Allowed for:
- Domestic Relations Cases
- Criminal Cases
- CA: Med Mal Cases require set %
Fee Sharing with Non Lawyers
Generally Prohibited
Fee Sharing with Lawyers in Firm
Allowed
Fee Sharing with Lawyers in Firm
Allowed
Fee Sharing with Lawyers Outside Firm under ABA
Allowed if:
1. Client consents in writing
2. Total Fee is reasonable
3. Fee sharing is proportionate
Fee Sharing with Lawyers outside Firm in CA
Allowed if:
1. Client consents in writing
2. Ls enter into written agreement
3. Total fee not increased b/c of division
4. Full Written Disclosed Terms of Sharing prior to Client’s Consent
