1. Solicitation & Advertising
Unit 6

2. Advertising Specific restrictions vary from state to state
No ABA Model Code requirements
Originally, the Model Code prohibited most forms of advertising except for name, address, phone number, and areas of practice.

3. Advertising - Paralegals
cannot deliver legal services directly to the public,
cannot advertise directly to the public
may advertise their services to lawyers and law firms through letters, advertisements in legal directories, and legal periodical publications.

4. Advertising - Paralegal
According to NFPA EC 1.7(b), a paralegal’s title shall be included if the paralegal’s name appears on business cards, letterhead, brochures, directories, and advertisements

5. Solicitation
Solicitation is in person, by telephone, or by written communication that is directed to a specific individual.
Advertising is directed to the public at large.

6. Solicitation Advertising is permitted but what about solicitation?
Usually not permitted

7. Solicitation
According to Rule 7.3, a lawyer shall not by in-person, live telephone or real-time electronic contact solicit professional employment from a prospective client when a significant motive for the lawyer’s doing so is the lawyer’s pecuniary gain….

8. Solicitation
Unless the person contacted is connected is a lawyer; or has a family, close personal, or prior professional relationship with the lawyer

9. Solicitation
Okay to solicit legal work from people who are already clients of the firm or family members is permitted

10. Solicitation
Several states have enacted statutes that prohibit contact for a certain amount of time to people who have been charged with crimes or people who are related to victims of mass disasters

11. Solicitation
These statutes were designed to protect people from making choices about legal representation while they are especially vulnerable.

12. Solicitation
Lawyers must refrain from actively seeking out people who may have a legal claim or refrain from “convincing” laypeople they do have a legal claim
As a result, laypeople may be irreparably injured if they do not seek legal assistance to pursue their claims or refuse to believe they have a claim.

13. Solicitation
The line between solicitation and helping a member of the public understand a legal problem is not a clear one, but the motivation of the legal professional is a guide…

14. Solicitation
If the in-person communication is motivated by the desire to make money, it is probably improper solicitation.
If it is motivated by a desire to assist a member of the public in recognizing a legal problem, it is more likely proper.

15. Solicitation
allow a layperson to lead the discussion and ask you for a referral to a lawyer or firm before offering such a referral
Okay to give the business card of your law firm to laypeople if they ask for it.
But can’t put the card in the pocket of an accident victim or offer the card to a stranger

16. Solicitation
If a paralegal is found soliciting clients at the request of the lawyer, the lawyer will be held responsible.

17. Corporations Are corporate clients different?
Yes - the in-person solicitation rules do not apply to corporate counsel in some states.
The non-solicitation rules exist to protect members of the public.

18. Referrals
Can We Pay Someone for Referring a Case or Client?

19. Referrals
the ABA and most states agree that a lawyer should not be paid any more than the “responsibility assumed or work performed is worth.”
In other words, if a lawyer didn’t work on the case, the lawyer shouldn’t get paid

20. Referrals
A referral fee is considered as a fee paid for doing nothing other than bringing the client to the lawyer.

21. Division of Fees
Although the ABA apparently disapproves of referral fees, it doesn’t mind dividing fees.
Division of fee is considered as a single billing to a client covering the fee of two or more lawyers who are not in the same firm.

22. Champerty
In many instances, getting paid for bringing a case to a lawyer is called champerty
Champerty is the purchasing of a claim or a client
Additional terms are “Runners and Cappers”

23. Champerty
They are typically non-lawyers, people who get paid for bringing a case to a lawyer or law firm, or a patient to a doctor or hospital.
Paying a runner or capper for bringing a case to a law firm is the illegal practice of champerty, or the purchasing of a claim.

24. Referral Fees
Paralegals should not accept referral fees from lawyers nor agree to share a fee with a lawyer.

25. Websites
Since a law firm Internet site can be viewed by people in all states across America, does it have to comply with the advertising rules of every state bar?
Compliance with the rules of the states where the firm has offices is usually enough.

26. Websites
If your firm’s Website has a method for the public to communicate with you, there may be a problem with confidentiality (according to an ethics opinion from California).

27. Websites
Visitors to the Website have a reasonable belief that communication with the firm creates an attorney/client relationship that protects their secrets unless your disclaimer is clear and in plain language so it overcomes that presumption.

28. Websites
To put a client on a page listing of clients, should/must have written permission from the client to list the client as a reference.
If the lawyer or law firm link to other Web sites, they are not responsible to their content
BUT if there is false or misleading info on those other websites and we give the appearance that we are endorsing that false info, we probably violate state regs on false advertising.

29. Chat Rooms
Model Rule 7.3 addresses “real-time electronic contact” such as Internet chat rooms in its prohibition against in-person solicitation as of 2002. 

31. FEES & TRUST ACCOUNTING
Unit 7

32. Fair Fees The degree of difficulty of a particular legal task,
The amount of time involved,
The experience and skill of the attorney, and
A firm's overhead (rent, equipment, salaries, maintenance of a library, and costs associated with maintaining professional skills and education.)

33. Fair Fees
A firm's overhead comprises approx 35 to 50 percent of the legal fees charged.
A firm's services normally involve research, investigation, and case preparation.

34. The Initial Meeting Discuss the time anticipated to resolve the case,
The difficulties likely to be encountered, and
The complexity of the legal issues in the particular case.

35. Fees
Fees should be discussed early to prevent surprises and misunderstandings for both client and attorney.
A client should be prepared to decide how much money he or she can afford to invest in the resolution of the problem.

36. Fees Many states require a fee agreement to be in writing
Even if not required in your state, it is a good practice

37. Fees The attorney/client relationship involves a mutual commitment.
Both parties should full and complete understanding of the commitment.

38. Legal Fees
Why is it not always possible for attorneys to give you an estimate of their fees?
they cannot control the other side of an issue.

39. Fees
In addition to the fee charged by the lawyer, there will probably be certain associated costs
E.g., filing fees, sheriff fees, court reporters.
Most of these costs cannot be controlled by the lawyer and are necessary if the attorney is to be an effective advocate.

40. Fees
If the fee is going to be substantial, a monthly payment may be arranged.
Interest may be added to the outstanding balance but disclosure must be provided in advance.

41. Cost Deposits and Retainers
Under the Model Rules, a firm is prohibited from engaging in frivolous lawsuits.
Therefore, a firm may require a cost deposit or retainer before it takes a case.

42. Cost Deposits
Cost deposits are used to cover expenses such as filing fees, deposition costs, expert fees and other expenses.
A firm may ask for additional monies if the costs or time incurred exceed the original deposit or retainer.

43. Retainers
A retainer is an advance on legal fees to be charged in the future
The funds are placed into the firm’s trust account
Fee retainers can be refundable or nonrefundable.
The client should be advised as to whether any part of it will be refunded if the client does not proceed.

44. Types of Attorney’s Fees
Fixed Fees:
For frequently performed services such as drafting an uncomplicated will or assisting with an uncomplicated real estate transaction

45. Types of Attorney’s Fees
Hourly Charge:
Most matters handled by a firm are handled by a fixed hourly charge for the services.
A firm's fee is computed by multiplying the fixed hourly charge by the number of hours spent working for the client.

46. Types of Attorney’s Fees
The final fee may still include other direct out-of-pocket expenses, such as court filing costs, photocopying charges, long distance telephone charges, travel costs or other expenses directly related to a particular case.

47. Types of Attorney’s Fees
Contingent Fees:
In certain types of lawsuits-such as personal injury, collections and auto damages - a firm may agree to accept a part of the money the client recovers as the fee for services.

48. Contingent Fees
a firm and client must enter into a written fee agreement at the outset of the representation, stating what portion of the recovery a firm will receive.
The fee is generally fixed at a percentage of the recovery.

49. Contingent Fees
An additional percentage may be added if the matter is tried again or appealed to a higher court.
Customarily, a firm does not receive any contingent fee when the lawsuit is unsuccessful, but the client is expected to reimburse the attorney for out-of-pocket expenses such as court filing fees or expenses paid to witnesses.

50. Contingent Fees
If the client wins the suit, these same expenses may be deducted from the client's share of the recovery.
Contingent Fees are not permitted in
Divorce cases
Criminal cases

51. Florida - Example
If the matter is settled before the filing of an answer or demand for appointment of arbitrators, or if no answer is filed or no demand for appointment of arbitrators is made, the expiration of the time period provided for such action, the fee is 33 1/3 percent of any recovery up to $1 million.

52. Florida - Example
If the case is concluded at any point after the filing of an answer or demand for appointment of arbitrators, if no answer is filed, or no demand for appointment of arbitrators is made, the expiration of the time period provided for such action, through the entry of judgment, the maximum fee is 40 percent of any recovery up to $1 million.

53. Florida - Example
In addition to the above fees, if the matter is settled for an amount between $1 million and $2 million, or if it is won at trial and the recovery is between $1 and $2 million, the fee is 30 percent of the recovery between $1 million and $2 million.

54. Florida - Example
In addition to the above fees, if the matter is settled for an amount above $2 million, or if it is won at trial at trial and the recovery is above $2 million, the fee is 20 percent of the recovery above $2 million.

55. Mixed Fee Arrangements
In some matters, a firm may utilize a combination of the above fee arrangements, such as a reduced hourly rate with a contingent bonus if a matter is successful.

56. Minimizing Legal Fees To minimize costs, clients should:
Gather all info and put in logical order
Bring any relevant papers such as contracts, letters, court notices, or leases.
Have current telephone numbers and addresses of key individuals and witnesses, if applicable
Prepare a written statement of their probs and what they want done

57. Minimizing Legal Fees Make photocopies of everything for the firm.
The firm will let the client know if originals are needed.

58. Minimizing Legal Fees
gather thoughts and prepare before calling the Firm so info can be presented at one time.
Offer to Perform Some of the Work
E.g., if the attorney needs copies of birth certificates or other records, clients can write the letters requesting them to save the attorney the time needed to dictate and process the letter.

59. Minimizing Legal Fees Hire the Attorney to Act as Go-between
Some lawyers are open to negotiating a lawyer fee if you are only looking for their legal expertise to write a letter to the other side to settle.
A client may hire the attorney for this type of limited assistance.
If the client is unsuccessful, he/she may retain the attorney to pursue the case.

60. Minimizing Legal Fees Hire the Attorney to Act as Pro Se Coach
attorney would review docs and letters that client prepares and signs.
attorney may also help the client prepare for a hearing in which the client represents himself.
E.g., small claims court or
to enforce a lease or collect bills

61. Minimizing Legal Fees Answer Your Attorney's Questions Fully
Your communications to your attorney are confidential.
offer complete and honest answers.
If you are not sure if a piece of info is relevant, ask your attorney.

62. Minimizing Legal Fees
If your attorney knows all the facts as early as possible in the case, it will save time (and money) that might be spent on investigation or misdirected case development.

63. Minimizing Legal Fees
If the Situation Changes, Tell Your Attorney as Soon as Possible
You are a primary source of info about your case and your attorney will act based on the info you provide.

64. Minimizing Legal Fees
If something happens or if you find out new info that may affect your case, give the info to your attorney quickly… it may change what he or she is doing on your case… and it may save the attorney's time (and your money) or save the attorney from heading in the wrong direction on a case.

65. Minimizing Legal Fees
Maximize the Value of Your Contacts with Your Attorney
you will pay for virtually every minute you spend with your attorney.
While a friendly relationship can facilitate the handling of your case, limit the phone calls and meetings to the business of the case. You will not want to pay for a long, friendly conversation about other matters.

66. Minimizing Legal Fees
Consolidate questions and/or info giving into a single call.
Pass on info in writing or to other office staff rather than speaking directly with the attorney unless you have a specific reason to do so.

67. Minimizing Legal Fees Examine Your Bill
Request that your attorney bill you on a regular basis.
Even if you have agreed on a contingency fee and will not actually pay the expenses until the case is settled, you should periodically examine the expenses.

68. Minimizing Legal Fees
Question any items that you do not understand or that are not covered in your fee agreement.
For example, your attorney may list the cost of attending continuing legal education seminars in the area of your case. Unless you have agreed to cover these costs, you may wish to question this entry.

69. Fees Things to be considered by the firm and the client:
How much can you afford?
Is it a routine matter or does it require special expertise?
What is the range of attorney rates for this type of case in your area?
How much work can you do on the case?

70. Candidly Describe Your Financial Limitations
If you have extremely limited funds, discuss the situation with your attorney.
If you have a long- standing relationship, you may be able to work out a payment plan.
If the situation is compelling, some attorneys may be willing to help someone who genuinely needs it.

71. Fees smaller firms usually charge less than larger firms.
If a case is interesting or novel or extremely lucrative, an attorney may be willing to negotiate.
If the firm is actively seeking more work or is new to your locality, it may handle a case for less as a way to build its caseload.

72. Fees
When might a client Choose to Comparison Shop for Flat Fees on Simple Cases?
When in need of a simple transaction such as will, a real estate closing, or a power of attorney

73. Fees Choose a lawyer who specializes in what you need
You are likely to save money by choosing someone who has the knowledge and office systems set up to handle cases like yours cost-effectively.
That attorney is also more likely to be knowledgeable about specific procedures relating to your case, expert witnesses in the area, and other attorney experts for consultation.

74. Avoiding Fee Disputes
Discuss fees and related costs during the initial consultation and develop a written fee agreement.
Make sure the agreement clearly states what it does and does not cover.
E.g., will the client be charged each time he or she telephones the attorney?
Does the fee include regular status reports to the client?

75. Avoiding Fee Disputes
When a deposit or "retainer" is requested, discuss whether or not any part of it will be refunded if the case does not proceed.
If billing by the hour, provide a monthly statement so the client can be aware of the costs associated with the case.

76. Avoiding Fee Disputes
If working on a contingency basis, make sure both parties understand how it will work.
Contingency means the client won't be charged attorney's fees if the case is lost; but the client may still be responsible for costs such as filing fees, investigators and/or transcripts.

77. Avoiding Fee Disputes
If the client wins, the attorney is paid a percentage of the money awarded by the court.
Both parties should know the attorney's percentage and whether or not it will be taken before or after court costs are subtracted.
Include arbitration of fee disputes

78. RULE 5-1. 2 TRUST ACCOUNTING RECORDS AND PROCEDURES (a) Applicability
RULE TRUST ACCOUNTING RECORDS AND PROCEDURES (a) Applicability. The provisions of these rules apply to all trust funds received or disbursed by members of The Florida Bar in the course of their professional practice of law as members of The Florida Bar except special trust funds received or disbursed by an attorney as guardian, personal representative, receiver, or in a similar capacity such as trustee under a specific trust document where the trust funds are maintained in a segregated special trust account and not the general trust account and wherein this special trust position has been created, approved, or sanctioned by law or an order of a court that has authority or duty to issue orders pertaining to maintenance of such special trust account.
These rules shall apply to matters wherein a choice of laws analysis indicates that such matters are governed by the laws of Florida.

79. (b) Minimum Trust Accounting Records
(b) Minimum Trust Accounting Records. The following are the minimum trust accounting records that shall be maintained. These records may be maintained in their original format or stored in digital media as long as the copies include all data contained in the original documents and may be produced when required.
A separate bank or savings and loan association account or accounts in the name of the lawyer or law firm and clearly labeled and designated as a "trust account.“
(2) Original or clearly legible copies of deposit slips if the copies include all data on the originals and, in the case of currency or coin, an additional cash receipts book, clearly identifying:
(A) the date and source of all trust funds received; and
(B) the client or matter for which the funds were received.
(3) Original canceled checks or clearly legible copies of original canceled checks, all of which must be numbered consecutively, if the copies include all endorsements and all other data and tracking information.

80. (4) Other documentary support for all disbursements and transfers from the trust account.
(5) A separate cash receipts and disbursements journal, including columns for receipts, disbursements, transfers, and the account balance, and containing at least:
(A) the identification of the client or matter for which the funds were received, disbursed, or transferred;
(B) the date on which all trust funds were received, disbursed, or transferred;
(C) the check number for all disbursements; and
(D) the reason for which all trust funds were received, disbursed, or transferred.

81. (6) A separate file or ledger with an individual card or page for each client or matter, showing all individual receipts, disbursements, or transfers and any unexpended balance, and containing:
(A) the identification of the client or matter for which trust funds were received, disbursed, or transferred;
(B) the date on which all trust funds were received, disbursed, or transferred;
(C) the check number for all disbursements; and
(D) the reason for which all trust funds were received, disbursed, or transferred.
(7) All bank or savings and loan association statements for all trust accounts.

82. (c) Minimum Trust Accounting Procedures
(c) Minimum Trust Accounting Procedures. The minimum trust accounting procedures that shall be followed by all members of The Florida Bar (when a choice of laws analysis indicates that the laws of Florida apply) who receive or disburse trust money or property are as follows:
The lawyer shall cause to be made monthly:
(A) reconciliations of all trust bank or savings and loan association accounts, disclosing the balance per bank, deposits in transit, outstanding checks identified by date and check number, and any other items necessary to reconcile the balance per bank with the balance per the checkbook and the cash receipts and disbursements journal; and
(B) a comparison between the total of the reconciled balances of all trust accounts and the total of the trust ledger cards or pages, together with specific descriptions of any differences between the 2 totals and reasons therefor.

83. (2) At least annually, the lawyer shall prepare a detailed listing identifying the balance of the unexpended trust money held for each client or matter.
(3) The above reconciliations, comparisons, and listings shall be retained for at least 6 years.
(4) The lawyer or law firm shall authorize, at the time the account is opened, and request any bank or savings and loan association where the lawyer is a signatory on a trust account to notify Staff Counsel, The Florida Bar, 651 East Jefferson Street, Tallahassee, Florida , in the event the account is overdrawn or any trust check is dishonored or returned due to insufficient funds or uncollected funds, absent bank error.
(5) The lawyer shall file with The Florida Bar between June 1 and August 15 of each year a trust accounting certificate showing compliance with these rules on a form approved by the board of governors.

84. (d) Record Retention. A lawyer or law firm that receives and disburses client or third-party funds or property shall maintain the records required by this chapter for 6 years subsequent to the final conclusion of each representation in which the trust funds or property were received.
(e) Audits. Any of the following shall be cause for The Florida Bar to order an audit of a trust account:
failure to file the trust account certificate required by rule 5-1.2(c)(5);
(2) return of a trust account check for insufficient funds or for uncollected funds, absent bank error;
(3) filing of a petition for creditor relief on behalf of an attorney;
(4) filing of felony charges against an attorney;

85. (5) adjudication of insanity or incompetence or hospitalization of the attorney under The Florida Mental Health Act;
(6) filing of a claim against the attorney with the Clients’ Security Fund;
(7) when requested by a grievance committee or the board of governors;
(8) upon court order; or
(9) upon entry of an order of disbarment, on consent or otherwise.

86. (f) Cost of Audit. Audits conducted in any of the circumstances enumerated in this rule shall be at the cost of the attorney audited only when the audit reveals that the attorney was not in substantial compliance with the trust accounting requirements.
It shall be the obligation of any attorney who is being audited to produce all records and papers concerning property and funds held in trust and to provide such explanations as may be required for the audit.
Records of general accounts are not required to be produced except to verify that trust money has not been deposited thereto.
If it has been determined that trust money has been deposited into a general account, all of the transactions pertaining to any firm account will be subject to audit.

87. (g) Failure to Comply With Subpoena for Trust Accounting Records
(g) Failure to Comply With Subpoena for Trust Accounting Records. Failure of a member to timely produce trust accounting records shall be considered as a matter of contempt and process in the manner provided in subdivision (d) and (f) of rule , Rules Regulating The Florida Bar.

88. FAIR FEES AND CLIENT TRUST ACCOUNTS
Unit 7 Review
FAIR FEES AND CLIENT TRUST ACCOUNTS

89. A relationship begins when a client finds a law firm (because in theory the law firm is not finding a client)
Then the firm and client must come to an agreement about their relationship
This relationship is called a “fee agreement”, a “representation agreement” or “the attorney/client agreement”

90. It is important for the agreement to have the scope of the representation
Basically, what is expected of both the firm and the client, and the fees that will be charged

91. A fee agreement requires the balance of what two parts?
The cost of that client’s case (including overhead costs) and
The amount of money that can be generated by the case

92. Cases are typically taken (regarding fee agreement) either on an hourly rate basis or a contingency fee basis
Setting time estimates can be dangerous since it can lead to unreasonable expectations
Trust goes in both directions for the client and the attorney.

93. The lawyer trusts the client to:
Tell the truth,
Cooperate in discovery, and
Pay the bills
The client trusts the lawyer to:
Communicate with the client about the
progress of the case,
Work diligently,
Have the skill and knowledge to handle
the matter competently, and
Send fair and honest bills. Think back to the DB hypo

94. A paralegal is an important support role in creating the relationship between lawyer and client.
The lawyer promises to keep the client current on the events of the representation
This can be done more efficiently by the paralegal and at a lower cost to the client
(Presenting it that way will make the client more amenable to communicating with the paralegal)

95. The paralegal discusses at the beginning of the client relationship:
The paralegal’s hourly rate, just as the rate of each lawyer on the case,
Explanation of the supporting role (many members of the public are (still) not familiar with the role of the paralegal),
Gives the client business card with your direct line and address,
Encourages the client to communicate directly with you.

96. Are fee agreements with lawyers negotiable?
Yes even if the firm gives a cost (i.e. divorce $500).
The more open communication there is between lawyer and client at the beginning of the representation, the less likely there will be disputes later about the bills.
The legal fee must not only be fully explained to the client, but it must be objectively fair.
Rule 1.5 says that reasonable fees should be charged to the client in appropriate cases in which the clients are able to pay them. This has been interpreted to mean that fees must be “objectively reasonable.”

97. Paralegals (and other nonlawyers) are not permitted to “negotiate” fee agreements with clients on behalf of a lawyer
If explaining a routine fee agreement to a client, the paralegal must instructions from the lawyer and authorized to provide the information
What does it mean if the agreement is not “negotiated”?

98. The client agrees to the contract that is written and the client properly signs the agreement without discussing it with a lawyer
If you explain to the client various elements of the contract, does this constitute “the unauthorized practice of law?”
Not as long as you have been given instruction in the various elements of the contract and told to explain them, then you are doing nothing more than repeating what the lawyer told you to say.

99. The prosecution of most personal injury cases is taken on a “Contingency fee basis”
How does that work?
The law firm’s recovery of legal fees is contingent upon the outcome of the case.
The law firm may advance the costs of the lawsuit as well as dedicate hours to it.
At the end of the lawsuit, if the judgment (or settlement) is in favor of the plaintiff, the costs of the suit will be paid out of the judgment and the lawyer and client will each get a percentage of the money.
Contingency fee agreements vary.

100. Why is a careful explanation of the fee agreement important?
Calculating the fees can make a big difference in the amount the client will ultimately get from the lawsuit.
The more the client understood and agreed to, the more likely the contract will be affirmed.
If the fee agreement is completely and carefully explained to the client, but is objectively unfair, it will be set aside if the client contests it

101. The court will look at the following factors when considering the fairness of the contract by the court :
The sophistication of the client,
How well the contract was explained to the client by the law firm, and
How acceptable the fee agreement would seem to the average person

102. Why has the use of the expression “No Recovery, No Fee” in contingency fee cases has been questioned by some states as being misleading?
Because the client is obligated to pay litigation expenses and court costs regardless of whether any recovery is obtained

103. At the conclusion of a contingency fee case, the client is entitled to an accounting
A document that shows the amount that was awarded (or settled upon) and all of the amounts that were charged against the award (such as doctors bills or expert witness fees), how much will go to the law firm and how much will go to the client

104. Another method of billing is hourly billing.
The NFPA provides the following ethical guidelines:
NFPA EC 1.2(c): A paralegal shall ensure that all timekeeping and billing records prepared by the paralegal are thorough, accurate, honest, and complete.
NFPA EC 1.2(d): A paralegal shall not knowingly engage in fraudulent billing practices.
Such practices may include but are not limited to:
Inflation of hours billed to a client or employer;
Misrepresentation of the nature of tasks performed; and/or
Submission of fraudulent expense and disbursement documentation.

105. How does hourly billing differ from value billing?
Hourly billing is an agreement where the client will be charged a flat rate for certain tasks
In some places, the term value billing refers to the contract under which the law firm gets paid a small amount for the work done (as in a reduced hourly rate) and a bonus for a good result. In other words, the client is willing to pay more when he wins.
Some people also refer to this kind of arrangement as bonus billing

106. Fixed Billing is when the client is charged one flat rate for the representation regardless of how long it takes or how much work is involved.
Representations that are mass produced, i.e. relief from stay in bankruptcy or consumer collection matters, fixed fee billing is very popular.
It allows the client to budget legal fees from the beginning of the representation; it encourages efficiency; it encourages delegation of work to employees who are more suited to the tasks; and it provides training for new staff members in an atmosphere where “hours billed” is not the primary focus.

107. A variation of the typical hourly billing system is blended rate billing.
How is this billing arranged?
The client agrees to pay one hourly rate, a blended rate for all billing employees (instead of separate charges for attorney, paralegal, etc).
This encourages the firm to utilize the lower-rate billers and to use the expensive partners sparingly.

108. Components of a Fee Agreement:
1. Identify the client(s);
2. Identify the lawyer primarily responsible for
handling the file;
3. Describe the nature and the scope of the
representation;
4. Set out the objectives of the representation;
5. Tell the client what you expect from the client;
6. Set out the basis for calculating the fee;
7. Make clear the responsibility for paying costs and
give some examples of standard costs;
continued

109. 8. Describe the method, manner, and frequency of billing, including how any retainer money held in trust will be used;
9. Make a disclaimer about results;
10. Set forth the process for dealing with unpaid bills (are you going to arbitrate disputes?);
11. Tell the client what happens if the firm needs to terminate the representation;
12. Make a disclosure about professional liability insurance ; and
13. Make a clear statement about what will happen to the files at the conclusion of the case

110. In a Fee Agreement, it is improper to:
Ask the client for a gift,
Sign away the literary rights to the client’s case, or
Limit the lawyer’s liability for professional negligence or malpractice.

111. Law firms will often require a retainer from the client.
What are the different retainers?
 The classic retainer,
 An advance payment retainer, and
A security retainer
How do they differ?

112. The classic retainer:
Ensures the firm’s availability over time - the client is paying for is the reservation, not necessarily any work. It is considered earned upon receipt, whether or not services are actually provided.
The type of retainer that is earned upon receipt regardless of services actually rendered is sometimes called a nonrefundable retainer

113. An advance payment retainer:
Is a present payment compensating the lawyer for services to be performed in the future; it is considered earned upon receipt and may be a “flat fee” (in other words, it may be paid without expectation that the lawyer will ask for more compensation once the retainer is exhausted).
A security retainer:
Secures payment for future services; it remains the property of the client until applied to charges for services actually rendered, and any unused portion is refundable to the client.

114. When most people talk about a “retainer,” they are referring about a security retainer
What is a client trust account?
It is a separate bank account set up to hold any money the firm receives on behalf of a client or third party.
Lawyers tend to use the terms “attorney trust account” or “lawyer trust account”.

115. Client trust accounts must be interest-bearing accounts.
That means it has to be an account that accrues interest.
In the typical client trust account, the interest is accrued and put into a fund called IOLTA or Interest On Lawyer Trust Account.
The bank collects all of the interest from all of its IOLTAs and sends the money to the state bar of each state (or an organization designated by the state bar for that purpose). The State Bar uses the IOLTA money to fund the free legal service providers throughout the state.
The interest on these client trust accounts, then, is what makes free legal services possible. Some states have exceptions to the requirement.

116. If the client has given the firm money as a retainer, the money goes into the client trust account until it is earned.
At the end of each month, then, the client is sent a bill or invoice for that month’s work.
If hearing no objection from the client, what is done with the money?

117. It becomes earned by the law firm and must be transferred out of the client trust account immediately.
No law firm money should be kept in the client trust account.
If it is, it’s called “commingling”.
Law firm money and lawyer money must be segregated from client money.

118. What is the law firm’s obligation if the client refuses to a pay the bill?
The law firm has a continuing obligation to represent the client but this can devolve into litigation between lawyer and client over money and the lawyer’s continuing obligation to represent the client.

119. According to Rule 1.5(e), when can a division of a fee between lawyers who are not in the same firm be made?
The division is in proportion to the services
performed by each lawyer or each lawyer assumes joint responsibility for the representation;
(2) The client agrees to the arrangement,
including the share each lawyer will receive,
and the agreement is confirmed in writing;
(3) The total fee is reasonable.

120. A referral fee is a fee paid for doing nothing other than bringing the client to the lawyer.
What is the term used if a lawyer pays someone else for bringing the lawyer a case?
Champerty—
The purchasing of a claim or a client

121. How does common law retaining lien differ from charging lien?
For a common law retaining lien:
The attorney assert a lien attaching all papers, books, money, and other property of the client the attorney has in his possession in order to secure payment of legal fees.
A charging lien:
Secures the legal fees by attaching a lien to a future judgment or settlement in the case