Fees

Question 1

fee amounts generally

Answer 1

can’t make an agreement for, charge, or collect an unreasonable fee or unreasonable amount of expenses

Question 2

double billing

Answer 2

ABA – usually considered unreasonable/dishonest

CA – allowed if charge to each client is not unconscionable, lawyer disclosed billing clearly at outset, and both clients consented

Question 3

communicating fee agreements

Answer 3

must communicate before or w/in reasonable time after commencing representation the basis or rate of the fee and the expense for which client is responsible
- writing preferable but not req
- ongoing duty to communicate changes unless regularly represented

CA: must be in writing if reasonably foreseeable than fee will exceed 1k, unless client is corp/emergency/writing impractical/client doesn’t want written/legal services are same as previously paid for

Question 4

advance fee

Answer 4

must refund unearned portion of fee is client fires lawyer or lawyer does not perform services

Question 5

true retainer fee

Answer 5

paid solely to ensure lawyer’s availability; not refundable (for CA: client has to agree in writing that not entitled to any refund)

Question 6

accepting property for services

Answer 6

subject to scrutiny as biz transaction

Question 7

contingent fees

Answer 7

dependent on successful resolution of client’s case
1. must be reasonable (CA: explicit limitations for med Mal)
2. writing signed by client, disclose calculation methods/what expenses will be deducted/etc (CA: say % may be negotiated and how client will be charged for any extra work)
3. discharge of lawyer on contingency - entitled to reasonable value of services up until discharge if client goes on to win (maybe forfeited fee though if discharged b/c of ethical violation)
4. prohibited in criminal or domestic relations cases, unless just contract suit for collecting post-judgment balances

Question 8

fee splitting within firm

Answer 8

can split however they want

Question 9

fee splitting with outside lawyers

Answer 9

may share if:
1. total fee is reasonable
2. split is in proportion to work rendered by each lawyer or in another proportion if assuming joint responsibility on the matter and
3. client agrees to split in writing that discloses share each lawyer will receive

CA: allows true referral fees; still requires agreement in writing and that entire fee is not raised solely b/c divided. proportional work doesn’t matter

Question 10

fee splitting with nonlawyers

Answer 10

must not split, minimal exceptions