Lawyer-Client Relationships: Conflicts and Fees Flashcards
General Rule: Fees
The fee paid to the lawyer will be for the reasonable value for the work. Must be (1) communicated to the client, preferably in writing; (2) before or within a reasonable amount of time after commencing representation
To determine reasonableness consider:
1- time and labor required, novelty and difficulty of the questions involved
2- likelihood that he acceptance of the particular employment will preclude other employment by the lawyer;
3- the fee customarily charged in the locality for similar services;
4- the amount involved and the results obtained
5- time limitations imposed by the client or circumstances;
6- nature and length of the professional relationship
7- experience, reputation, and ability of the lawyer
8-fee is fixed or contingent
Contingent Fees
The lawyer will collect a fee only if the client obtains a favorable outcome. ust be:
1- Signed by the client
2- Needs to state the method by which the fee is to be detemined including
- percetange that shalla accrue to the lawyer
- litigation and other expaneses deducted
- any expenses for which the client will be liable regardless of outcome of the case
- Contingent fees are not permitted in DOMESTIC RELATIONS matter or CRIMINAL matters- cannot enter agreements where fees are contingent upon securing divorce, etc. CAN enter into a contingent fee agreement to collect post-judgment balances due under domestic relations.*
e. g. L canot enter into an agreement to collect 15% of whatever husband recovers from his wife in a divorce action. BUT can enter into an agrrement to collect 15% of past-due alimony.
General Rule: Sharing Fees
L should not split fees with other attorneys’
Exceptions:
- Two lawyers work together on a case and three requirements are met:
a. division of fee is portionate to services performed by ach lawyer
b. client agrees to the arragement
c. total fee is reasonable.
Referal or forwarding fee is not permitted unless the referals are reciprical, not exclusive and the client is informed of the arrangement.
Business transactions with Clients
LAWYER BEWARE.
L shall not enter into a business transaction with a client unless:
- transcation is fair and reasonable to client and client is fully disclosed AND transmitted in writting
- client has been advised, in writing, to seek advice from independent counsel
- Informed consent from client
Does not apply to standard commerical transactions- e.g. L represents Citi Bank and also uses Citi Bank for personal banking—permitted
1.8(b)
Cannot use information relating to representation to disadvantage client unless client gives informed conseent.
Solicitation of gifts
Not permitted, including testamentary gifts.
Unsolicited gifts are permitted so long as they are reasonable.
Media Rights
Prior to conclusion of representation, L may not accept media rights to an account based in substantial part on information relating to the representation.
Financial Assistance to Clients
L shall not provide financial assistance to a client unless its for :
1- Court costs and expenses of littigation
2. A L representing an indigent client may pay cort costs and expses of litigation on behlaf of client
3. May provide financial assistance for prono clients. Must be modest in amount and not before presenting commences.
Aggregation of Settlement
L repersenting two or more clients SHALL not participate in making an aggregate settlement of the claims of or against the clients, unless:
1- informed consent
2- in writing
Limiting Lawyer’s Liability
L shall not:
1- make an agreement prospectively limiting the lawyer’s liability unless client is independently represented in making agreement.
2. Settle a claim for liability without advising that person to seek independent counsel
Sexual relations
Not permitted unless the sexual relations existed prior to the commencement of representation
Fordham Case
Kid got caught drunk driving. Talked to lawyers who charged b/w $3k-$10K. Went with a family friend who did not have experience in that field (and told them that). Won the case but charged family $60K for litigation. Court ruled that L needed to inform the family that he would charge for studying new area of law.
1.15 (Client Property)
NO CO-MINGLING of FUNDS.
Client’s funds must be kept in a separate account.
Lawyer may put personal funds in the trust account to cover banking fees. Must be the exact amount.
