Fees and Expenses Flashcards
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Read the first 7 Fees and Expenses flashcards as text
A lawyer who successfully completes a contingency fee case must provide the client with a written statement after the matter concludes. What must the statement include under Model Rule 1.5(c)?
Answer: The outcome of the matter, the remittance to the client, and the method of its determination.
Rule 1.5(c) requires a written statement showing the outcome, the remittance to the client, and how it was determined.
A client and attorney enter into a fee agreement that includes a provision requiring the client to pay the attorney's fees even if the client fires the attorney without cause. Under the Model Rules, such a provision is:
Answer: Permissible if the fee that results is reasonable under all circumstances.
A fee provision is not per se prohibited simply because the client terminates, but the resulting fee must still be reasonable under Rule 1.5(a).
An attorney charges a client for in-house photocopying at $0.50 per page, even though the actual cost is $0.05 per page, without disclosing the markup. Under the Model Rules, this practice is:
Answer: Improper because expenses charged to clients must reflect actual costs unless the client consents to a different arrangement.
Lawyers may charge for expenses but not at inflated rates without client consent; such markups can render the fee unreasonable or constitute a misrepresentation.
A lawyer refers a client to another attorney and receives a referral fee from that attorney. Under the Model Rules, this is permissible if:
Answer: The total fee is reasonable, the client is informed and consents in writing, and the division is proportionate to services or involves joint responsibility.
Rule 1.5(e) governs fee divisions between lawyers in different firms and requires proportionality or joint responsibility, client written consent, and a reasonable total fee.
A prospective client consults an attorney who declines the case. Later, the attorney discovers information the client shared during the consultation could be valuable if sold to an opposing party. Charging the prospective client a consultation fee for this meeting would be:
Answer: Impermissible if no fee arrangement was established before the consultation.
A lawyer may charge a consultation fee only if that arrangement was communicated to the prospective client before the consultation.
A lawyer agrees to represent a criminal defendant in exchange for a fee contingent on acquittal. Under the Model Rules, this arrangement is:
Answer: Prohibited because contingency fees in criminal cases are forbidden.
Model Rule 1.5(d)(2) expressly prohibits contingency fees in criminal cases.
A lawyer charges a long-standing client a higher rate than new clients for the same services because the lawyer perceives the relationship as more valuable. Under the Model Rules, this is:
Answer: Improper if the resulting fee is unreasonable under Rule 1.5(a) factors.
There is no uniform rate requirement, but any fee charged must satisfy the reasonableness test under Rule 1.5(a).