Fees

Question 1

What must lawyer fees be?

Answer 1

Lawyer fees must be reasonable, not excessive.

Question 2

Reasonable Fee

Answer 2

Factors to consider are the customary fee in the community for similar work, the time and amount of work involved, and the experience, reputation, and ability of the lawyer.

Question 3

Who can a lawyer collect fees from?

Answer 3

Generally, only the client. Lawyer’s cannot receive fees from a third party unless the client gives consent, there is no interference with the attorney-client relationship, and confidentiality is maintained.

Question 4

Can the court order attorney’s fees?

Answer 4

Generally, no. Unless by statute, contract, or the court orders sanctions.

Question 5

Contingency Fees

Answer 5

Contingency fees are dependent on the outcome of the case. They are not allowed in family or criminal law. A contingency fee agreement must be in writing and include how the fee is calculated, the fee percentage (generally between 15-40%, otherwise it is excessive); how much of the fee will be recovered if the case is settled, tried, or appealed; and when the expenses are calculated. Clients must be given a statement of client rights and they have 3 days to retract the agreement.

Question 6

Referral fee

Answer 6

Referral fees are allowed (1) if the fee amount is divided proportional to the amount of work done by each lawyer, or (2) if there is a written agreement with the client for joint representation and the agreement sets out how the work/fee will be divided.
Fees cannot be shared with a non lawyer.

Question 7

Trust Accounts

Answer 7

All property must be kept separate. Client property must be kept in a trust account. Attorney property must be kept in the operating account. Commingling of property is not permitted. The lawyer may not give financial assistance to client except for advancing court costs and expenses, or paying costs and expenses for indigent clients.