PR Flashcards
Lawyer-Client Formation
A lawyer-client relationship exists if
(1) a person seeks legal counsel which
(2) the lawyer expressly or impliedly agrees to provide, or fails to expressly deny, and
(3) the lawyer knows or should know that the person reasonably relies on the lawyer to provide the services
The relationship begins upon the client’s reasonable belief of its existence.
Duty to Accept Client
Generally, a lawyer is not obligated to accept any client unless the lawyer is appointed by the court to do so.
A lawyer may decline court appointments if good cause exists
Duty to Reject Client
A lawyer must reject representation if
(i) it would result in a violation of ethics rule or other law
(ii) the lawyer’s physical or mental condition materially impairs his ability to represent the client
Scope of Lawyer-Client Relationship
The client determines the objectives of the representation including decisions to testify in a criminal case, waive a jury trial, accept a settlement offer, or plead guilty.
The lawyer determines the means (tactical decisions/appropriate legal strategy) to achieve the client’s goals
Limiting Scope of Lawyer-Client Relationship
The lawyer can limit the scope of representation if
(1) the limitation is reasonable under the circumstances and
(2) the client gives informed consent
Assisting or Advising Violation of Law is Prohibited
A lawyer shall not counsel a client to engage in or assist a client in conduct the client knows is criminal or fraudulent.
Mandatory Withdrawal
A lawyer is REQUIRED to withdraw from representation if
(i) representation will lead to a violation of the ethics rules or other law
(ii) his mental or physical condition materially impairs his ability to represent the client or
(iii) he is discharged
[In California - AND if he knows or should know that the client is bringing an action without probable cause or to harass or maliciously injure a person]
Permissive Withdrawal
A lawyer MAY withdraw from representation if
(i) the withdrawal will not cause material harm to the client
(ii) the client has used or insist on using the lawyer’s services to commit fraud or crime,
(iii) the client breaches a material term relating to the representation and the lawyer has given the client reasonable warning of withdrawal after the breach
(iv) the representation will result in an unreasonable financial burden on the lawyer
(v) the client makes representation unreasonably difficult
(vi) other good cause exists
Process of Withdrawal
Upon termination of representation, a lawyer must give reasonable notice to the client, allowing time for employment of other counsel, surrendering papers and property to which the client is entitled, and refunding any advance payment of fee or expense that has not been earned or incurred (CA - unless the fee was a true retainer)
Reasonable Fees
A lawyer’s fees must be reasonable. The following factors are used to determine reasonableness:
(i) difficulty of the case
(ii) lawyer’s experience and reputation
(iii) fee customarily charged in the locality for similar services
(iv) preclusion of other employment
(v) whether a fee is fixed or contingent and
(vi) the nature of relationship with the client
CA - Must not be unconscionable or illegal
General Fee Agreements
General fee agreements need NOT be in writing.
In California, general fee agreements exceeding $1,000 must be in writing and signed by both parties unless
(i) the client is a corporation
(ii) the client provides a written waiver of the writing
(iii) the services were provided in an emergency to prevent foreseeable prejudice to the client or
(iv) the fee is implied based on previous similar services provided by the lawyer to the client
California - Contents of Fee Agreement
In California, a fee agreement must include the
- basis of compensation
- general nature of the legal services provided, and
- responsibilities of the lawyer and the client
Contingent Fees
A contingent fee is an agreement that the lawyer’s fee will be contingent upon the outcome of the case. Contingent fee agreements must be
(1) in a writing signed (ABA- by the client) (CA - by both client and lawyer)
(2) include the method by which the fee is to be determined and
(3) clearly notify the client of the fees for which he is liable
Limitation on Contingent Fees
Contingent fees are prohibited in (i) criminal cases and (ii) domestic relations matters
In California, contingent fee agreements are allowed in domestic relations matters if the fee is not contingent upon securing a divorce or the amount of spousal or child support received.
Division of Fees -
Lawyers at the Same Firm
Generally, a lawyers who work at the same firm may share fees.
Division of Fees -
Lawyers at Different Firms
Lawyers who do not work in the same firm cannot split fees unless
(1) the client consents to the division of fees in writing
(2) the total fee is reasonable
(3) the division is proportionate to the services performed by each lawyer or each lawyer is jointly responsible for the representation.
Division of Fees - Non-Lawyers
Generally, lawyers are prohibited from
(i) sharing legal fees with a non-lawyer or (ii) forming a partnership with a non-lawyer if any of the partnership actives involve the practice of law.
Exceptions include (i) an agreement to distribute fees to the lawyer’s estate or specified individuals after the lawyer’s death, (ii) an agreed upon purchase price for the practice of a deceased, disabled, or disappeared lawyer, (iii) fees to non-lawyer employees through a compensation or retirement plan, and (iv) court-awarded legal fees shared with a nonprofit organization that employed, retained, or recommended the lawyer.
Referral Fees
Generally, a lawyer is prohibited from compensating, giving, or promising anything of value to a person for recommending the lawyer’s services
Referral Fees - California
In California, a lawyer is allowed to give a gift or gratuity to a person for a recommendation that resulted in his employment as long as the gift was not offered in consideration of an agreement that
(i) the referral would be expected or (ii) that the person would make future referrals.
Reciprocal Referral Agreements
Reciprocal referral agreements are ALLOWED if they are
(1) not exclusive
(2) the client is aware of the existence and nature of the agreement
Duty to Safeguard Client’s Money
A lawyer MAY NOT commingle funds and must put any money he receives in connection with the client’s representation in a separate client trust account, which is maintained in the state where the lawyer’s office is located, or elsewhere with the consent of the client or third person.
Dispute over Funds
In the event of a dispute over funds, the disputed portion shall be kept separately by the lawyer until the dispute is resolved
Duty to Safeguard Client’s Property
Property of the client within the lawyer’s possession shall be identified, kept separately from that of the lawyer, and appropriately safeguarded
Record keeping
Complete records of account funds and other property shall be kept by the lawyer and shall be preserved for a period of five years after termination of the representation