Financial Integrity

Question 1

Fees

Answer 1

ABA rules state that fee must be reasonable
CA rules state that fee must not be unconscionable
Factors:
1. Time and labor required
2. Novelty and difficulty of questions asked
3. The skill required to perform the services
4. experience, ability, reputation of attorney

Question 2

Fee Agreements

Answer 2

ABA: do not have to be in writing, unless contingency fee
CA: written fee agreement if the fee will exceed 1K

CA Exceptions:

1. Client is a corporation
2. Client states in writing that she does not want a written fee agreement
3. Legal services are the same kind that the client has previously received and paid for
4. Emergency
5. Writing is impractical for other reasons

Question 3

Contingent Fees

Answer 3

A lawyer may contract with a the client for a reasonable contingent fee in a civil case.

ABA: subject to discipline for using one in a domestic relations case where the contingency is securing the divorce or property settlement
CA: silent on domestic relations, but under law, prohibited if it discourages marriage

Question 4

Property For Services

Answer 4

A lawyer may accept property in return for services provided that this does not involve a proprietary interest in the cause of action or subject of litigation

Question 5

Business Transactions

Answer 5

A lawyer may not enter into a BT with a client or knowingly acquire an ownership or other pecuiniary interest adverse to the client UNLESS:

1. transaction and terms are fair and reasonable to client
2. terms are fully disclose in writing
3. Terms are in a manner that client can reasonably understand
4. Client is informed in writing about seeking independent counsel, given reasonable time to seek IC
5. Client understands lawyer’s role in the transaction
6. Client gives informed written consent