III - The Client - Lawyer Relationship p. 32- 33 D. Fees and Expenses Flashcards

1
Q

A lawyer is _______ from charing a fee that is unreasonable. In addition, a lawyer is prohibited from entering into an agreement for an unreasonable fee or collecting such a fee. MRPC 1.5(a)

A

Prohibited

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2
Q

A lawyer is prohibited from ______ __ _____ that is unreasonable. In addition, a lawyer is prohibited from entering into an agreement for an unreasonable fee or collecting such a fee. MRPC 1.5(a)

A

charging a fee

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3
Q

A lawyer is prohibited from charging a fee that is ____________. In addition, a lawyer is prohibited from entering into an agreement for an unreasonable fee or collecting such a fee. MRPC 1.5(a)

A

unreasonable

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4
Q

A lawyer is prohibited from chagrining a fee that is unreasonable. In addition, a lawyer is ________ from entering into an agreement for an unreasonable fee or collecting such a fee MRPC 1.5(a)

A

prohibited

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5
Q

A lawyer is prohibited from chagrining a fee that is unreasonable. In addition, a lawyer is prohibited from ________ into an ________ for an unreasonable fee or collecting such a fee. MRPC 1.5(a).

A

entering

agreement

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6
Q

A lawyer is prohibited from charging a fee that is unreasonable. In addition, a lawyer is prohibited from entering into an agreement for an ________ _____ or _______ such a ______. MRPC 1.5(a).

A

unreasonable fee

collecting

fee

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7
Q

Factors that may be considered when determining the reasonableness of a lawyer’s fees include the following:
1. ?
2.
3.
4.
5.
6.

A
  1. Difficulty of the case
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8
Q

Factors that may be considered when determining the reasonableness of a lawyer’s fees include the following:
1.
2. ?
3.
4.
5.
6.

A
  1. Other employment likely precluded
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9
Q

Factors that may be considered when determining the reasonableness of a lawyer’s fees include the following:
1.
2.
3. ?
4.
5.
6.

A
  1. Nature of the relationship and the fee arrangement
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10
Q

Factors that may be considered when determining the reasonableness of a lawyer’s fees include the following:
1.
2.
3.
4. ?
5.
6.

A
  1. Expertise and reputation of the lawyer
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11
Q

Factors that may be considered when determining the reasonableness of a lawyer’s fees include the following:
1.
2.
3.
4.
5. ?
6.

A
  1. Amount at issue and the results obtained
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12
Q

Factors that may be considered when determining the reasonableness of a lawyer’s fees include the following:
1.
2.
3.
4.
5.
6. ?

A
  1. Fee charged in locality
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13
Q
  1. Difficulty of the case

Factors impacting the difficulty of the case may be considered when evaluating the fee, such as the ______ and ______ required, the novelty and difficulty of the questions involved, and the skill necessary to perform the service, as well as the time limitations imposed by the client or by the specific circumstances surrounding the case. MRPC 1.5(a)(1), (5)

A

time and labor

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14
Q
  1. Difficulty of the case

Factors impacting the difficulty of the case may be considered when evaluating the fee, such as the time and labor required, the ______ and _____ of the questions involved, and the skill necessary to perform the service, as well as the time limitations imposed by the client or by the specific circumstances surrounding the case. MRPC 1.5(a)(1), (5).

A

novelty and difficulty

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15
Q
  1. Difficulty of the case

Factors impacting the difficulty of the case may be considered when evaluating the fee, such as the time and labor required, the novelty and difficulty of the questions involved, and the _______ necessary to _______ the _______, as well as the time limitations imposed by the client or by the specific circumstances surrounding the case. MRPC 1.5(a), (1), (5).

A

skill

perform the service

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16
Q
  1. Difficulty of the case

Factors impacting the difficulty of the case may be considered when evaluating the fee, such as the time and labor required, the novelty and difficulty of the questions involved, and the skill necessary to perform the service, as well as the ______ ________ imposed by the client or by the specific circumstances surrounding the case. MRPC 1.5(a)(1), (5).

A

time limitations

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17
Q
  1. Other employment likely precluded

The likelihood that the lawyer’s representation will preclude _____ __________ by the lawyer, either due to the time requirements or potential conflicts that may arise, may be considered, but only if ___ ______ is aware of these limitations. MRPC 1.5(a)(2).

A

other employment

the client

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18
Q
  1. Nature of the relationship and the fee arrangement

Whether the fee is _______ or ________, _______ or _______, may be considered, as well as the way in which the client-lawyer relationship has been developed or evolved over time. MRPC 1.5(a)(6), 1.5(c).

A

fixed or contingent

prepaid or hourly

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19
Q
  1. Nature of the relationship and the fee arrangement

Whether the fee is fixed or contingent, prepaid or hourly may be considered, as well as the way in which the ______ ____ ________ has been ________ or ______ over time. MRPC 1.5(a)(6), 1.5(c)

A

client- lawyer relationship

developed or evolved

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20
Q
  1. Expertise and reputation of the lawyer.

A seasoned, well-known lawyer may be able to _____ ______for the same service than a new lawyer without specific expertise. MRPC 1.5(a)(7).

A

charge more

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21
Q
  1. Amount at issue and the results obtained.

The amount at issue (i.e., the recovery sought by the plaintiff) can be considered when a lawyer is setting the fee. In addition, the amount of the fee can depend on the _______ obtained by the lawyer. MRPC 1.5(a)(4).

A

results

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22
Q
  1. Fee charged in locality

The ________ _____ charged for similar services in a given ________ may also be considered.

A

customary fee

locality

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23
Q

Except for criminal cases and certain domestic relations cases, lawyers may charge a fee _______ on the outcome of the case.

A

contingent

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24
Q

Exam Tip: Remember _____ _____ ______ must be in writing and reasonable.

A

contingent fee arrangements

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25
Exam Tip: Remember contingent fee arrangements must be in _______ and _______.
writing and reasonable
26
Contingent Fee Arrangements are prohibited: 1. ? 2.
1. Criminal cases
27
Contingent Fee Arrangements are prohibited: 1. 2. ?
2. Domestic Relations Cases
28
Contingent Fee Arrangements are Prohibited in Criminal Cases. Because no ______ ____ _____ ______ is produced from a criminal matter, a lawyer is prohibited from charging a contingent fee to a criminal defendant. MRPC 1.5(d)(2).
pool of recovery money
29
Contingent Fee Arrangements are Prohibited in Domestic Relations Cases A lawyer may not charge a fee in a domestic relations case when the fee is contingent on obtaining a _______ or on the _______ ____ ________ or ________ ________. MRPC 1.5(d)(1).
divorce amount of support property recovered
30
Contingent Fee Arrangements are Prohibited in Domestic Relations Cases A contingent fee may be charged with respect to legal representation to recover ____ ____ ______ ______ under support, alimony or other financial orders. MRPC 1.5 Comment 6.
post-judgment balances due
31
Contingent Fee Arrangements are Prohibited in Domestic Relations Cases A contingent fee may be charged with respect to legal representation to recover post-judgment balances due under ______, ________ or other ______ ______. MRPC 1.5 Comment 6.
support, alimony or other financial orders
32
Example: An attorney's standard retainer contract in divorce cases provides for the payment of a fee of 1/4 of the amount of alimony or property settlement secured by the attorney. The attorney declines to represent clients who do not agree to this provision? What result?
Such a provision violates MRPC 1.5(d)(1) because it calls for a contingent fee based on the amount of support or property recovered in a domestic relations case.
33
Contingent fees, like any other fees, must be _______ under the circumstances. MRPC 1.5 Comment 3.
reasonable
34
The fee itself must be ________ and it must be ________ under the circumstances to change any form of ______ _______.
reasonable resonable contingent fee
35
Note: A _______ ____ that exceeds what a lawyer would have received by charging a reasonable hourly rate is not per se unreasonable.
contingency fee
36
Note: A contingency fee that exceeds what a lawyer would have received by charging a reasonable hourly rate is not ___ ____ ______.
per se unreasonable.
37
Under rule 1.5(c), a contingent fee arrangement must be in writing and must include the following: 1. ? 2. 3. 4.
signature of the client
38
Under rule 1.5(c), a contingent fee arrangement must be in writing and must include the following: 1. 2. ? 3. 4.
calculation methodology of the fee
39
Under rule 1.5(c), a contingent fee arrangement must be in writing and must include the following: 1. 2. 3. ? Details of the calculation for _______ and ______, including whether such expenses are to be deducted before or after the contingency fee is calculated; and 4.
deductions and expenses
40
Under rule 1.5(c), a contingent fee arrangement must be in writing and must include the following: 1. 2. 3. ? Details for the calculation for deductions and expenses, including whether such expenses are to be deducted ______ or _____ the contingency fee is calculated; and 4.
before or after
41
Under rule 1.5(c), a contingent fee arrangement must be in writing and must include the following: 1. 2. 3. 4. ? Clear description of any expenses for which the client will be liable whether or not the client is the ______ ______.
prevailing party
42
Under rule 1.5(c), a contingent fee arrangement must be in writing and must include the following: 1. 2. 3. 4. ? ______ _______ of any expenses for which the client will be liable whether or not the client is the prevailing party.
clear description
43
MRPC 1.5(c). At the conclusion of a contingent fee matter, the lawyer must provide the client with a _______ ______ stating the outcome of the matter and if there is a recovery, showing the remittance to the client and the method of its determination. MRPC 1.5(c).
written statement
44
MRPC 1.5(c). At the conclusion of a contingent fee matter, the lawyer must provide the client with a written statement stating the ________ of the matter and if there is a _______, showing the remittance to the client and the method of its determination. MRPC 1.5(c).
outcome recovery
45
Applicable _____ ____ may further limit contingency fee arrangements, such as by imposing a ceiling on the percentage allowed. MRPC 1.5 Comment 3.
local law
46
A lawyer may require payment, in ________ of _______ ________ as long as the lawyer returns any portion that is ultimately unearned because the representation is terminated. MRPC 1.5 Comment 4, 1.16(d).
advance of services rendered
47
A lawyer may require payment in advance of services rendered as long as the lawyer _______ any portion that is ultimately unearned because the representation is ________. MRPC 1.5 Comment 4, 1.16(d).
returns terminated
48
If the lawyer charges a _____ ______(i.e., money paid solely to ensure the availability of the lawyer), the lawyer generally does not have to refund the fee if the representation ends unless the parties otherwise agree.
retainer fee
49
______ ______ money paid solely to ensure the availability of the lawyer.
retainer fee
50
If the lawyer charges a retainer fee (i.e., money paid solely to ensure the availability of the lawyer), the lawyer generally does not have to ______ the _____ if the representation ends unless the parties agree otherwise.
refund the fee
51
_________ is generally acceptable form of payment, but the payment is subject to the requirements of MRPC 1.8(a). Payment in the form of a proprietary interest in the cause of action or subject matter of the litigation must also comply with MRPC 1.8(i).
property
52
A lawyer may not make an __________ with a client the terms of which might induce the lawyer improperly to curtail services for the client or perform them in a way contrary to the client's interest. MRPC 1.5 Comment 5. However, it is proper to define the extent of services based on the client's _______ ___ ______.
agreement ability to pay
53
A lawyer may not make an agreement with a client the terms of which might induce the lawyer improperly to _______ ________ for the client or perform them in a way contrary to the _____ _____. MRC .5 Comment 5. However, it is proper to define the extent of services based on the client's ability to pay.
curtail services client's interest
54
Accordingly, a lawyer may not enter into an agreement under which services are to be provided only up to a stated amount when it is foreseeable that more ________ services will likely be required, unless the situation is adequately _______ to the ______, or the scope of services is limited in a reasonable manner. Otherwise, the client will be caught by surprise and might have to bargain for further assistance during a proceeding or transaction. MRPC 1.5 Comment 5.
extensive explained client
55
Expenses for which the client is charged cannot be _______. MRPC 1.5(a). A lawyer may seek __________ for the cost of services performed in-house, such as copying. In addition, a lawyer may seek reimbursement for other expenses incurred in-house, such as telephone charges, either by charging a reasonable amount to which the client has agreed in advance or by charging an amount that reasonably reflects the cost incurred by the lawyer. MRPC 1.5 Comment 1.
unreasonable reimbursement
56
Expenses for which the client is charged cannot be unreasonable. MRPC 1.5(a). A lawyer may seek reimbursement for the cost of services performed in-house, such as _______. In addition, a lawyer may seek reimbursement for other expenses incurred in-house, such as ______ ________, either by charging a reasonable amount to which the client has agreed in advance or by charging an amount that reasonably reflects the cost incurred by the lawyer. MRPC 1.5 Comment 1.
copying telephone charges
57
Expenses for which the client is charged cannot be unreasonable. MRPC 1.5(a). A lawyer may seek reimbursement for the cost of services performed in-house, such as copying. In addition, a lawyer may seek reimbursement for other expenses incurred in-house, such as telephone charges, either by _______________________________________ or by charging an amount that reasonably reflects the cost incurred by the lawyer. MRPC 1.5 Comment 1.
chagrining a reasonable amount to which the client has agreed in advance
58
Expenses for which the client is charged cannot be unreasonable. MRPC 1.5(a). A lawyer may seek reimbursement for the cost of services performed in-house, such as copying. In addition, a lawyer may seek reimbursement for other expenses incurred in-house, such as telephone charges, either by charging a reasonable amount to which the client has agreed in advance or _______________________________________________________ MRPC 1.5 Comment 1.
by charging an amount that reasonably reflects the cost incurred by the lawyer.
59
Although lawyers within a firm can legitimately share fees with each other (even after retirement) fee sharing with lawyers not within the same firm or with non-lawyers is ________. MRPC 1.5(e)
restricted.
60
Although lawyers within a firm can legitimately share fees with each other (even after retirement) fee sharing with lawyers not within the _____ ______ or with _____ _______ is restricted. MRPC 1.5(e).
same firm non-lawyers
61
Fee splitting among lawyers at different firms is permitted if all three of the following conditions are met: 1. The ______ is in ______ to the services rendered by each lawyer or ______ _______ is assumed for the representation.
fee proportion joint responsibility
62
Fee splitting among lawyers at different firms is permitted if all three of the following conditions are met: 2. The ______ ________ to the fee splitting arrangement, and the agreement is ______ ___ ________.
client agrees confirmed in writing
63
Fee splitting among lawyers at different firms is permitted if all three of the following conditions are met: 3. The _______ ____ _____ must be ________ (such that a client is not charged more just because additional lawyers are working on the case).
total fee charged reasonable
64
Note:Fee splitting among lawyers at different firms is permitted if all three of the following conditions are met: 1. 2. 3.
1. The fee is in proportion to the services rendered by each lawyer or joint responsibility is assumed for the representation 2. the client agrees to the fee splitting arrangement, and the agreement is confirmed in writing 3. The total fee charged must be reasonable (such that a client is not charged more just because additional lawyers are working on the case).
65
NOTE: If all of the MRPC 1.5(e) requirements for fee splitting are met, the lawyers can submit ____ _____ to the client and then ______ the fee.
one bill split
66
A lawyer is generally prohibited from giving anything of value to anyone for recommending the lawyers services. MRPC 7.2(b). A lawyer paying a fee to a referring lawyer in return for a referral violates this rule. However, the referring lawyer is entitled to be reasonably compensated for any work he did prior to the referral, such as _______ the ______. MRPC 1.5 Comment 1.
interviewing the client.
67
_______ may be shared with former partners and associates of the primary lawyer in a matter pursuant to a profit-sharing or retirement plan.
fees