The Client-Lawyer Relationship Question and Answers — Questions and Answers
Question 1: The customary retainer agreement for attorneys in divorce proceedings calls for the payment of a fee equal to one-third of the alimony or property settlement the attorney successfully negotiates. Clients who object to this arrangement are not accepted as clients by the attorney. Is the retainer agreement used by the attorney appropriate?
- No, because the fee is contingent. (Correct answer)
- Yes, as many clients favor paying a lawyer's fee dependent on the case's outcome.
- Yes, if a fee of one-third is not excessive.
- No, since a lawyer is not permitted to acquire a proprietary interest in a claim.
Correct answer: No, because the fee is contingent.
Model Rule of Professional Conduct 1.5(d) explicitly prohibits contingent fees in domestic relations matters, including divorce, alimony, or property settlement cases. Such agreements are deemed unethical because they could incentivize attorneys to prolong disputes or take positions that might hinder reconciliation, as their fee would depend on the size of the settlement.
Question 2: Attorney and Deft, the subject of a criminal proceeding, entered into a signed retainer agreement. Deft stipulated in writing that if Attorney was successful in keeping Deft out of jail, Deft would give Attorney title to Deft's car. The accusations against Deft were later dropped. Does Attorney face punishment for signing this retainer agreement?
- No, since a written retainer agreement was established.
- Yes, as the attorney agreed to a fee that was dependent on how the criminal case turned out. (Correct answer)
- Yes, since a lawyer is not permitted to obtain a proprietary interest in a client's assets.
- No, because Deft's criminal charges were dropped.
Correct answer: Yes, as the attorney agreed to a fee that was dependent on how the criminal case turned out.
Model Rule of Professional Conduct 1.5(d) strictly prohibits contingent fees in criminal cases. A lawyer's compensation cannot be made dependent on the outcome of a criminal proceeding, such as securing an acquittal or avoiding jail time for the client. This rule ensures that a lawyer's professional judgment remains uncompromised by a personal financial stake in the client's liberty.
Question 3: Attorney encountered a number of situations where clients didn't pay their fees on time, but it was too late to end the representation without harming the clients. Attorney has created a clause of consent to withdraw if fees are not paid in accordance with the fee agreement in order to prevent a repeat of this circumstance. She suggests having each client sign the clause at the beginning of the representation. Is it appropriate for the attorney to employ the clause that allows them to end a client's representation anytime they don't pay fees?
- No, unless they are given a chance to get their own legal counsel before signing the clause.
- No, as a client's refusal to pay fees when due may not be sufficient to support withdrawal in and of itself. (Correct answer)
- Yes, since a lawyer may resign when continuing the client's representation will cost significantly more money than what the parties had anticipated at the time of the fee agreement.
- Yes, because the clients consented to the withdrawal in the stipulation.
Correct answer: No, as a client's refusal to pay fees when due may not be sufficient to support withdrawal in and of itself.
While non-payment of fees can be a basis for withdrawal, a lawyer cannot withdraw if it would cause a material adverse effect on the client's interests, even with a prior consent clause. Model Rule of Professional Conduct 1.16 requires a lawyer to protect a client's interests upon termination, and a blanket clause allowing withdrawal anytime fees are unpaid, without considering the stage of the case or potential harm to the client, is generally not permissible.
Question 4: The lawyer wants to make it simpler for her clients to pay her fees. Which of the following best describes a lawyer? I. Take bank credit cards as payment for legal expenses. II. Make arrangements for clients to get bank loans so they can pay the attorneys' costs. 3. If a case is noteworthy, ask that the client provide the attorney the right to publish information about the case in exchange for a portion of the fee.
- I and II, but not III (Correct answer)
- Neither I, II, nor III
- II only
- I, II, and III
Correct answer: I and II, but not III
Lawyers are generally permitted to accept bank credit cards for fee payments and to assist clients in obtaining bank loans for legal costs, provided these arrangements are reasonable and ethical. However, Model Rule 1.8(d) prohibits a lawyer from negotiating for literary or media rights to a portrayal or account based on the representation prior to its conclusion, as this creates a conflict of interest.
Question 5: On a contingency fee basis, the attorney is defending Client, the plaintiff in a personal injury case. The client lacks the financial means to cover the costs of the investigation and the necessary medical tests to get ready for trial. Client requested that the attorney cover these costs. Attorney offered to guarantee Client's promissory note to a local bank in order to get the monies required to pay those expenditures but rejected to advance the funds. In the event that the attorney is held liable for the guaranty, the client has committed to pay the attorney back. If Attorney backs up the client's promissory note, would she face consequences?
- No, because Attorney took the case on a contingent fee basis.
- No, because the funds will be used for trial preparation. (Correct answer)
- Yes, because Attorney is lending her credit to Client.
- Yes, because Attorney is helping to finance litigation.
Correct answer: No, because the funds will be used for trial preparation.
Model Rule of Professional Conduct 1.8(e)(1) allows a lawyer to advance court costs and expenses of litigation, the repayment of which may be contingent on the outcome of the matter. Guaranteeing a client's promissory note for litigation expenses, such as investigation costs and medical tests, falls within this exception, especially when the client is indigent. This provision helps ensure access to justice for clients who cannot otherwise afford necessary litigation costs.
Question 6: Despite living next door to one another, the plaintiff and defendant are savage rivals. Plaintiff accuses the defendant of trespassing and is suing him. Each party sincerely believes that his perspective is the right one. Attorney Alpha represents the plaintiff, and Attorney Beta represents the defendant. Plaintiff informed Alpha that he had hired Alpha "I don't want you to give the defendant or his attorney any delays or courtesies. I want you to be picky about every little detail." Beta has received a demand from Alpha to respond to written questions. Due to his secretary's illness, Beta has requested from Alpha an additional five days to respond to his questions. If Alpha agrees to Beta's request for a five-day extension, would she face punishment?
- No, unless granting the extension would prejudice Plaintiff's rights. (Correct answer)
- No, because Beta was not at fault in causing the delay.
- Yes, because Alpha is acting contrary to her client's instructions.
- Yes, unless Alpha notifies Plaintiff first and gets Plaintiff's permission to grant the request.
Correct answer: No, unless granting the extension would prejudice Plaintiff's rights.
While a lawyer must abide by a client's decisions regarding the objectives of representation, lawyers typically retain discretion over the means by which those objectives are pursued, including routine procedural matters. Granting a reasonable extension for a legitimate reason, such as a secretary's illness, is a professional courtesy that generally does not prejudice a client's substantive rights and falls within a lawyer's professional judgment, unless it would demonstrably harm the client's case.
Question 7: A seasoned oil and gas developer served as the client. Client requested legal counsel for assistance in a lawsuit to prove Client is the rightful owner of specific oil and gas royalties. Client lacked the resources required to cover the attorney's reasonable hourly fee for embarking on the case. Instead, the client suggested paying the attorney a sum equivalent to 20% of the total revenues from whatever first-year royalties the client would be entitled to as a consequence of the lawsuit in cash. The lawyer agreed to take the case and accepted the offering. Is Attorney liable for punishment?
- Yes, unless the amount of money the lawyer gets isn't lower than what they would have made if they'd charged a fair hourly rate.
- Yes, as a result of the agreement's proprietary interest in the client's claim.
- No, as Attorney may agree to a reasonable contingency fee with the Client. (Correct answer)
- No, because Client rather than Attorney proposed the fee arrangement.
Correct answer: No, as Attorney may agree to a reasonable contingency fee with the Client.
Contingency fee arrangements are generally permissible in civil cases where the client seeks to recover money or property, such as in a dispute over oil and gas royalties. Model Rule of Professional Conduct 1.5(c) allows for such fees, provided they are reasonable and the agreement is in writing. This type of fee structure makes legal services accessible to clients who may lack the immediate funds to pay hourly rates, aligning the attorney's compensation with the successful outcome for the client.
The Client-Lawyer Relationship Question and Answers
The customary retainer agreement for attorneys in divorce proceedings calls for the payment of a fee equal to one-third of the alimony or property settlement the attorney successfully negotiates.
Clients who object to this arrangement are not accepted as clients by the attorney.
Is the retainer agreement used by the attorney appropriate?