Fees

Question 1

Rule 1.5: Fees

A lawyer shall not make, ask for, or collect unreasonable fees or expenses. What 8 factors are considered when determining the reasonableness of a fee?

Answer 1

1. The time and labor required, difficulty of the questionins involved, and the skill required
2. The likelihood that if the client accepts the fees, he would employ the lawyer in the future
3. The fee usually charged in the area for similar legal services
4. The amount involved and the results obtained
5. The time limitations imposed by the client or the circumstances
6. The nature and length of the professional relationship
7. The experience, reputation, and ability of the lawyer
8. Whether the fee is fixed or contingent

Question 2

1. 5 Fees
   (b) requires lawyers to make some disclosures to clients about the fees they intend to charge. What does this disclosure include?

Answer 2

Must disclose the general nature of the legal services to be provided

Must disclose the basis or rate of the fee and expences including the rate per hour and other expenses

Question 3

1.5(b) Fees

Does the disclosure have to be in writing?

Answer 3

No, not unless the lawyer intends to charge a contingent fee, but the rule recommends but does not require the disclosure be in writing

Question 4

1.5 Fees

Does a lawyer have to disclose fee and expense information before starting to work on the matter?

Answer 4

No, the disclosure must occur “before or within a reasonable time after commencing the representation”

This applies to cases that need urgent attention, such as if a client is in jail. Otherwise, principles of contract law apply and require articulation of terms before an enforceable fee agreements exists

Question 5

Rule 1.5: Contingent Fees

What contingent fees are prohibited?

Answer 5

1. Domestic relations matters that are contingent upon the securing of a divorce or alimony amount or property settlement.
2. Criminal cases

Question 6

Rule 1.5(c): Contingent Fees

What must be included in a contingency fee agreement?

Answer 6

1. Must be in writing, signed by client
2. Must state the method by which the fee is to be determined, including lawyer’s percentage when he finishes.
3. Must include expenses to be deducted from recovery. Also, state whether they are to be deducted before or after whole thing is calculated.
4. Must clearly notify client of expenses which he is liable for even with no recovery
5. When the matter is finished, must provide client with written statement of outcome and how he won his money.

Question 7

1.5(c)

In a contingent fee agreement, Is there a maximum percentage that the lawyer can charge?

Answer 7

The rule does not specify a max percent but contingent fees are subject to the requriement of 1.5 that they are “reasonable”

Question 8

1.5 Fees

Does a lawyer have to estimate the amont of time he will spend or the total fee?

Answer 8

No, can be impossible to estimate the cost of litigation bc it is hard to predict how much time will be spent

Question 9

1.5

Can a lawyer increase the amount of billing hours by rounding up to a “billing increment”?

Answer 9

Yes, a lawyer can bill more time by rounding up to minimum time periods such as one-quarter hour

Question 10

1.5 Fees

Can a lawyer bill for costs of the case at a profit?

Answer 10

No a lawyer cannot bill for overhead costs at a markup, such as postage or messenger service. They can bill the client for the cost of the service at the actual cost incurred.

Question 11

1.5 Fees

If a lawyer does work that benefits two clients, can the lawyer bill both clients for the full amount of time worked?

Answer 11

No, he can split the block of time between the two clients but cannot bill both for the full time

Question 12

Rule 1.5

Can a lawyer bill a new client for research he obtained in a past case that relates directly to the new client’s case?

Answer 12

No. The lawyer cannot charge for “recycled” work, cannot profit on the chance that he will be asked the same question twice

Question 13

Can a lawyer require advance payment of a fee?

Answer 13

Yes, but you’re obliged to return any unearned portion.

Question 14

Rule 1.5

In Colorado, can an attorney charge their ususal rate for work that is capable of being done by non-lawyer paralegals/secretaries?

Answer 14

The CO Supreme Court held that lawyers should not bill at their hourly rates for clerical services

Question 15

Division of Fee

What’s that shit mean?

Answer 15

When you give a single bill to a client, but divide what he pays you between the multiple lawyers of different firms who worked on the case.

Question 16

What (2) ways can you do a division of fee?

Answer 16

1. Divide on the basis of the proportion of services each lawyer rendered.
2. Each lawyer assumes responsibility (financial and ethical) for the representation as a whole.

Question 17

Rule 1.5

(3) Factors for division of fee

Answer 17

1. The division is in proportion to services performed by each lawyer or each lawyer assumes joint responsibility
2. The client agrees to the arrangement, including the shares each lawyer gets, and it’s in writing.
3. The total fee is reasonable.

Question 18

Rule 1.5

Can a client pay for his lawyer’s services with property instead of money?

Answer 18

Yes, but you gotta watch out for Rule 1.8 - can’t give the lawyer a substantial interest connected to the case at hand.

Question 19

1.5(d)

No contingent fees for criminal cases.

Does this apply to both the defense attorneys and the prosecution?

Answer 19

No, only applies to defense.

In 2010 the district attorney in Denver gave bonuses to prosecutors who tried at least five cases and won convictions in at least 70% of them. This arguably gave the prosecutors an interest in the outcome of the criminal case, same as a contingent fee for defense attorneys

Question 20

Rule 1.8(e)

Financial Assistance to a Client

A lawyer cannot provide financial assistance to a client in connection with litigation except in two situations, what are they?

Answer 20

1. Lawyer can advance court costs and expenses of litigation, the repayment can be contingent on the outcome of the matter

AND

2. A lawyer representing an indigent (poor) client may pay court costs and expenses of litigation on behalf of the client

Question 21

Rule 1.8(e)

Financial Assistance

If a lawyer pays court costs and litigation expenses, including the cost of meical examinations or other costs to obtain evidence, is the client required to pay the lawyer for these costs?

Answer 21

If the client is indigent, no.

If the client is not indigent, the client is ultimately responsible for paying these costs, but they can be taken out of the client’s recovery

Question 22

1.8(i)

A lawyer may not “acquire a prorietary interest in the subject matter of litigation the lawyer is conducting for a client, except for:

(two things)

Answer 22

Permitted leins

&

Contingent fees

Question 23

1.8(i)

Lawyer cannot have proprietary interest in the subject matter of the litigation.

Can a lawyer who does collections work for Visa purchase claims from Visa and pursue the collection of the debt by himself?

Answer 23

No, not unless he purchases the debt claim and ceases to represent the client in the collection of that claim, bc the transaction would no longer be an interest in litigation in which the lawyer is involved

Question 24

Rule 1.8(d)

Publication Rights

Vanilla Ice asks you to represent him in a criminal case. Can you agree to take on the case in exchange for a promise that when it is over, you will have exclusive rights to publish a book about the case?

Answer 24

No, lawyer cannot get literary or media rights based in substantial part on info relating to the representation

Question 25

Rule 1.16(d)

If a lawyer recieves a payment before the case is over, is he required to tell the client that any unearned portion will be refunded or that the client may discharge the lawyer and receive a refund of any unearned portion?

Answer 25

No rule explicitly requires the lawyer to tell the client this, but the lawyer is required to refund the unearned portions

Question 26

Rule 1.8(i)

Can a lawyer acquire a lien on a clients property?

What other rule might apply?

Answer 26

Although a lawyer cannot have a “proprietary interest” in a clients case, 1.8(i) allows a lawyer to “acquire a lien authorized by state law to secure the lawyer’s fee or expenses”

A lawyer can contract with the client to secure the payment of the legal fee by a lien on the client’s summer home, for example. If the client did not pay the fee, the lawyer could assert a claim against the property.

The lien, acquired by contract, constitutes a business transaction with a client and is covered by 1.8(a), requiring (1) fair terms in writing and explaination of terms (2) advise to seek indep. representation (3) signed informed consent

Question 27

Is a lawyer entitled to fees for work completed if the lawyer withdrew before the case was finished?

Answer 27

Depends on the reason for withdraw, but generally a lawyer is entitled to collect fees if the withdraw was for good cause under 1.16(b)