Pg 11

Question 1

What are the different ways you can charge for legal services?

Answer 1

• billable hours
• flat fees
• salary
• contingency

Question 2

What is included in billable hours?

Answer 2

Hourly rate that varies by the firm and the type of activity

Question 3

What does it mean to have a flat fee?

Answer 3

A set price for a type of service that is communicated to the client, usually in writing, either before or within a reasonable time after beginning representation

Question 4

What does it mean if an attorney is salaried?

Answer 4

He works for an entity like in-house counsel or government (like public defender)

Question 5

What is a contingency fee?

Answer 5

Payment of the fee depends on the outcome of the representation. If the suit is successful, the attorney gets a percentage, if not, he gets nothing

Question 6

When are contingency fees very common?

Answer 6

Personal injury suits

Question 7

What is required for a contingency fee to be used?

Answer 7

It must be in writing, signed by the client, state the method that the fee will be determined by, include the percentage that will go to the attorney, state if litigation expenses will be deducted from recovery, and whether that will happen before or after the fee is calculated, and clearly state the expenses the client is liable for

Question 8

At the conclusion of a legal matter, what must the attorney provide to the client if he is charging a contingency fee?

Answer 8

A written statement providing the outcome, stating the recovery, giving remittance to the client, and the method it was determined by.

Question 9

Is it possible for a contingency fee to recover the amount that you save the client?

Answer 9

Yes

Question 10

What is the rule for how high a contingency fee can be?

Answer 10

The amount cannot be unreasonable

Question 11

Why is it OK for contingency fees to be higher than hourly fees?

Answer 11

Because the attorney is bearing the risk of not being paid at all

Question 12

When is the reasonableness measured for whether a contingency fee is too high or not?

Answer 12

At the time of making the agreement, not the time to fee becomes due

Question 13

If an attorney represents an indigent accused of murder in a book deal with his publisher and the person agrees to pay 30% of the royalties in exchange for representation, is that OK?

Answer 13

Yes, if it is not unreasonably high

Question 14

What are the things that attorneys cannot use contingency fees for?

Answer 14

– defending someone in a criminal case

– domestic relations cases

Question 15

Why is an attorney not allowed to charge contingency fees in criminal cases?

Answer 15

You don’t want attorneys to counsel against plea-bargains

Question 16

What are the kinds of domestic relations cases that contingency fees cannot be used for?

Answer 16

In Divorce: amount of alimony, support, property settlement

Question 17

Is it OK to use contingency fees to collect unpaid money that is due under an existing alimony, child support, or property settlement if the fee is reasonable?

Answer 17

Yes

Question 18

Why is it not all right for attorneys to use contingency fees in domestic relations cases?

Answer 18

Because you don’t want attorneys to counsel clients against reconciling

Question 19

If an attorney knows at the outset that a case is a sure winner, when would a contingency fee be unreasonably high?

Answer 19

If the attorney didn’t tell the P of how strong his case was ahead of time

Question 20

What are the two types of contingency fees?

Answer 20

Static contingent and sliding contingent

Question 21

What is a static contingency fee?

Answer 21

When the attorney’s percentage stays the same, and doesn’t change no matter what happens

Question 22

What is a sliding contingency fee?

Answer 22

When the attorney’s percentage is based on some factor, like the outcome. Or the percentage can go up as the client’s recovery goes up

Question 23

If an attorney gets 25% if the case ends before trial, and 35% if it ends during trial, is that OK for a contingency fee?

Answer 23

Yes, that is a sliding contingency fee, and it is OK because it reflects the amount of work done

Question 24

Is it OK if a contingency fee states that the attorney gets 15% for the first $100,000 recovered, then 20% for the next $100,000?

Answer 24

Yes, that is a sliding contingency fees that reflects the attorney’s skill and diligence, and is better measured by the last dollar of recovery than the first

Question 25

What is involved in MR 1.5 relating to scope?

Answer 25

The scope of the representation and the basis, rate of fees, expenses must be communicated to the client (preferably in writing) before or within a reasonable time after beginning representation

Question 26

When does an attorney not have to communicate the scope of the representation and basis of fees and expenses to the client before representing them?

Answer 26

If the attorney regularly represents the client and will charge the same basis as usual

Question 27

If there is a change in rate that the attorney is charging, what must the attorney do?

Answer 27

Communicate that to the client

Question 28

What is the voluntary pro bono expectation of attorneys?

Answer 28

Every attorney has a professional responsibility to contribute a fixed number of hours per year to pro bono (usually 50), and it is expected that it be given to people of limited means, or to charities, religious organizations, civic, community, government, or education organizations that help people in need

Question 29

Is it considered to be pro bono if the fee just went and uncollected?

Answer 29

No

Question 30

Is the expectation of pro bono work enforced by disciplinary measures?

Answer 30

No

Question 31

How is the conflict of interest expectation limited in pro bono work?

Answer 31

An attorney’s conflict of interest exposure is limited to representations that he knew involved a conflict of interest. If an attorney is acting for a nonprofit organization that gives short term limited legal services with no expectation that the attorney will continue to provide representation in the matter, there is no 1.6 or 1.9 expectation unless the attorney knows there is a conflict of interest

Question 32

What is the reason that there is a lesser exposure for conflict of interest for some pro bono work?

Answer 32

There is no expectation that the representation will continue beyond the consultation, so it isn’t feasible for the attorney to properly screen for conflicts of interest

Question 33

What is hybrid billing?

Answer 33

A flat fee plus an hourly rate for work in excess of a specified maximum. Ie: first 500 hours for $100,000, then $100 an hour afterward