Fees Flashcards
Fees
Standards
– Must be reasonable per MR 1.5, with laundry list of factors (Fordham)
– Contract law claims (e.g., unconscionable) (Brobeck)
– Depend greatly on sophistication of client
Fees
Process
– Contingent fee writing requirements per MR 1.5(c)
– Additional process for equity fees
Fees
Prohibitions
– Contingency and divorce/child support proceedings
– Contingency in criminal defense
– Nonrefundable special retainer
Equity Fees
Process
Conflict rules MR 1.7 & MR 1.8 applied to equity interests:
–– Fair and reasonable
–– Informed consent
Equity Fee Arrangements
Fee Structure
Flat fee
Reduced hourly
Deferred fees, formally or informally
Warrants (equity)
Equity Fee Arrangements
MRs
MR 1.8: requires writing that covers:
– Transaction terms, in a way recently understood
– Advising to hire an attorney council
– Informed consent, signed by client comment to essential terms and lawyers role
MR 1.7 (a)(2): requires writing that covers:
– Informed consent to potential material limited representation
MR 1.0: informed consent requires adequate info re material terms of and alternatives
MR 1.8 (a)(1): must be fair and reasonable
Class Compliance with MR 1.7
Client = class as whole Representative plaintiffs = generally full client status/keeping informed/confidentiality/conflict Passive plaintiffs = less than full clients for conflicts, settlement Safeguards = FRCP 23
Class Certification Requirements
Named representatives fairly and adequately protect the class Common questions predominate
FRCP 23
– Representative plaintiffs fiduciary duties
– Court oversight class certifications
– Notice and opportunity to object/ opt out
– Court oversight of attorneys fees
– Court approval of settlement
Settlement Structure
Schedule of payments Limited "exceptional" other injuries No inflation adjustment Annual limits Some actionable injuries barred
