Finding & Entering Into Relationship - FEES Flashcards
Fees
Model Rules v. CRPC
MR: Prohibits unreasonable fees
CRPC: prohibits unconscionable fees
Fee Agreement Requirement
RE: CA Rules (CBPC)
California requires a lawyer to communicate fee rates to clients in writing where it is reasonably foreseeable that the total fees and expenses will exceed $1,000 in non-contingency fee cases.
Fee Agreement Requirement
RE: CA Rules (CBPC) & what written contract must contain
- the basis for compensation, including but not limited to hourly rates, statutory fees or flat fees, and other standard rates, fees, and charges applicable to the case;
- the general nature of the legal services to be provided to the client; and
- the respective responsibilities of the attorney and the client as to the performance of the contract.
Fee Agreement Requirement
Re: What happens if you fail to comply with CBPC written requirements
Contract is rendered voidable at the option of the client, and the lawyer can only collect a reasonable fee.
Fee Agreement Requirement
Re: CBPC exceptions to writing agreement
Writing requirement does not apply to:
services rendered in an emergency to avoid foreseeable prejudice to the rights or interests of the client or where a writing is otherwise impractical;
an agreement as to the fee implied by the fact that the attorney’s services are of the same general kind as previously rendered to and paid for by the client;
when the client knowingly states in writing, after full disclosure, that a writing concerning fees is not required; and
where the client is a corporation.
Contingency Fees (CRPC)
Lawyers are prohibited from entering into:
a fee agreement in a domestic relations matter where payment (or amount thereof) is contingent on securing a divorce, an amount of alimony or support, or property settlement; or
a contingency fee agreement for representing a defendant in a criminal case.
Flat Fees (CRPC)
A lawyer can charge a flat fee for a specified service and collect that flat fee in advance.
Example: “$100 per will”
There is no counterpart in the Model Rules.
Fee Splitting (Model Rules)
Re: Only time you can divide fees between lawyers who are not in the same firm
the division is in proportion to the services performed by each lawyer, or each lawyer assumes joint responsibility for representation;
the client agrees in writing to the arrangement; and
the total fee is reasonable.
Fee Splitting (CRPC)
Re: How Model Rules Differs from CRPC
CA does not require proportionality between fee amount retained by each lawyer lawyer and the amount of work performed by each.
Fee Splitting (CRPC)
Re: Requirements
the fee division must be in writing, including the names of the lawyers and the terms;
the client must consent in writing to the division at the time the agreement is made or as soon thereafter as reasonably practicable; and
the total fee must not be increased solely because of the fee division
Safekeeping Client Funds or Property (MR + CRPC)
A lawyer is required to deposit any client funds (including advanced fees and costs) into a separate bank account (in CA labeled “Trust Account” or words of similar import).
The separate account must be located in the state where lawyer’s office is situated or elsewhere with consent of client
Safekeeping Client Funds or Property
Re: What does CRPC require if you’re keeping client funds other then where required
must be a jurisdiction where there is a substantial relationship between client and the other jurisdiction and need client written consent).
Safekeeping Client Funds or Property
Re: CRPC & Co - Mingling of att + Client money
Commingling of the lawyer’s and client’s money is permitted to the extent that funds:
are reasonably needed to pay bank charges; and
belong in part to the lawyer and in part to the client, unless there is a dispute over the funds, in which case the disputed portion must remain in the trust account.
