1.5 Fees
What is the standard/requirement for legal fees?
REASONABLE
What 3 bodies does L owe a duty to?
Preamble Comment 1
1. Representative of clients
2. An officer of the legal system
3. a public citizen having special responsibility for the quality of justice
Can L advertise they are the "best lawyer in town"? Why?
Yes
7.1- L cannot make a false or misleading statement about their services. False or misleading means a reasonable person would formulate a specific conclusion about L's services.
Here, "best lawyer in town" is mere puffery no reasonable person would formulate that this lawyer is the BEST.
If L or an E controlled by L is providing law related services, are they subject to the rules of professional conduct?
5.7
Yes
An attorney and an accountant entered into a nonexclusive reciprocal referral agreement. Under the terms of the agreement, the attorney and the accountant agreed to refer clients to one another. The agreement was set to last for five years. The lawyer and the accountant both planned to inform their clients of the reciprocal referral agreement.
Is the agreement permitted under the Model Rules of Professional Conduct?
Yes, because potential clients are informed of the existence of the agreement.
Do fee agreements need to be in writing?
Regular fees- preferred in writing, not required.
Contingent fees- YES and signed by client.
Can L hold leadership positions in legal service organizations that are adverse to their client?
YES
6.3- But L cannot make decisions that are adverse to their client.
6.4- disclose if the law reform materially benefits their client
Can L advertise that they are a specialist in a specific area of law?
7.2
Only if they have proper certification, and the certifying authority is clearly identified in the advertisement
What is unauthorized practice of law?
5.5
Practicing law in a JX without a license, or assisting another in practicing law in a JX where they do not have a license
After an attorney served four terms as a state senator, he decided to return to private practice at his former firm. The firm printed and mailed an announcement of the attorney’s return to all members of the state bar and other important state citizens. The announcement truthfully stated the attorney’s achievements as a state senator and included the address and contact information for the attorney at the firm.
Is the attorney subject to discipline?
No, because all the information in the announcement was true.
(1) What are the two ways lawyers can participate in fee sharing and (2) what are the requirements for fee sharing?
(1) Based on division of work or joint responsibility
(2) In writing, confirmed by client, and the total fee must be reasonable.
(1) How many pro bono hours are recommended for Lawyers and (2) how should lawyers dedicate that time?
6.1
(1) 50 hours per year
(2) Majority towards poor people or public interest organizations; additional hours at a reduced fee, individuals/groups focused on improving the law.
When can L compensate someone for recommending L's services?
7.2
- pay for advertisements
- pay a legal plan/referral service
- pay for law practice under 1.17
- referral agreements (not exclusive + C is informed of agreement)
- nominal gifts of appreciation
Can L form a partnership or share legal fees with a nonlawyer?
5.4
No to partnership
No, generally, to share legal fees, exceptions will be discussed later.
An attorney was drafting a new ad that would appear in an industry trade publication. The attorney was certified as a specialist in trademark law by the Intellectual Property Owners Association (IPO). However, the IPO was not approved as a certifying entity by any state or by the American Bar Association (ABA).
How can the attorney advertise their specialty and be in conformity with rule 7.2?
They can't the certifying entity must be approved by the ABA.
To avoid conflicts, how are class action fee arrangements determined?
the class action attorney must negotiate the settlement amount for the class and the judge must approve the settlement amount before the lawyer may negotiate the terms of their pay.
When can L avoid a court appointment?
6.2
For good cause:
1. lead to a violation of the rules
2. unreasonable financial burden
3. the client or cause is so repugnant
What does "live person to person contact" mean in terms of solicitation? (generally, not examples)
Does the person have adequate time to reflect on what L is offering?
ex. Face to face (no time to reflect), mailed advertisement (can reflect, or throw it out)
When can L practice in a JX where they do not have a license?
5.5
- collaborating with local counsel
- admission pro hac vice
- representation is related to arbitration/mediation proceeding
- arise out of or are related to L's licensed JX law practice
An attorney participated in an organization that used personal phone calls to solicit membership in its prepaid group legal services plan. After some confusion caused by the organization’s telemarketers, who were not lawyers, the organization decided to have the phone contacts made by lawyers who participated in the plan. That way, the lawyers would be better able to answer questions and protect potential members from misunderstanding what they were buying if they chose to join the plan.
Under the Model Rules of Professional Conduct, is it proper for the attorney to participate in the plan?
No, because participating lawyers are making the phone calls to potential members.
What are the factors to consider when determining whether a fee is reasonable? Hint there are 8.
1.5(a)(1)-(8):
1. time and labor required- novelty/difficulty of the issue and skill required to perform
2. acceptance will preclude other employment by the lawyer
3. fee customarily charged in the locality for similar legal services
4. the amount involved and the results obtained
5. time limitations imposed by the client
6. nature and length of relationship between L and C
7. experience, reputation, and ability of L
8. whether the fee is fixed or contingent
If L is providing short term legal services (ex. at a program or clinic), does 1.7, 1.9, and 1.10 still apply?
Only if L KNOWS there is a conflict (L or another L in LF)
When can L solicit by live person to person contact when L's significant motive is pecuniary gain?
7.3
- another lawyer
- family, close relationship, or prior business relationship
- the business routinely uses the type of legal services provided by L
What are the exceptions to L cannot share legal fees with a nonlawyer?
5.4
- After L's death, to L's estate
- Buy dead L's firm, pay estate
- Non-lawyer employees
- Share court-awarded legal fees with nonprofit that was related to the case.
An attorney who specialized in elder care learned of several new statutes that could negatively affect a will she wrote for one of her former clients. The attorney had not represented the client since she wrote the will four years ago and believed the client now used another attorney. In hopes of regaining the client, the attorney called her to see about writing a new will.
Is the attorney subject to discipline under the Model Rules of Professional Conduct?
No, because the attorney used to represent the client.