FEE AGREEMENTS
What To Look for In A Fee Agreement
Here is what you should look for in your fee Agreement:
A description of what matter the lawyer will be representing you in. How much you must pay for the initial retainer fee, and if it has been paid or not. How often will you be billed and when will the bill be due.
If your billing is based in whole or in part upon hourly rates, the hourly rates for each person who will be rendering services. If the billing is based on a contingency fee plan, what will the percentages paid to the attorney be.
A statement that your lawyer has not and cannot promise any specific results.
Provisions for out of pocket fees, such as travel, expert fees, filing fees, service costs, subpoenas, court reporter and transcript costs, which are the client’s sole responsibility. The lawyer has no duty to pay or advance any such expenses.
The attorney must place in the contract if there is a “cap” on the fees that the attorney can charge.
There are many factors that will determine the ultimate cost of your suit, if there is not a “cap” agreement in your contract. Cost can depend on many factors. Some of the factors to be considered are:
The time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal services properly. The likelihood that the acceptance of this particular employment will preclude other employment by the lawyer.
Customary charges in the county in which the litigation takes place for similar legal services. Often the fees will depend on the amount involved in the matter and the results obtained. The time limitations imposed by the client or by the circumstances.
The nature and length of the professional relationship between the lawyer and the client. Repeat clients may be in a position to negotiate a lower rate with the attorney.
The experience, reputation and ability of the lawyers performing the services.
The following statement of client’s rights and responsibilities should be included in the contract. In California many of these statements must be included by Law. (Outside California the requirements may be different):
WRITTEN ENGAGEMENT AGREEMENT: The written engagement agreement, prepared by the counsel, shall clearly address the objectives of representation and detail the fee arrangement, including all material terms. If fees are to be based on criteria apart from, or in addition to, hourly rates, such criteria (e.g., unique time demands and/or utilization of unique expertise) shall be delineated. The client shall receive a copy of the written engagement agreement and any additional clarification requested and is advised not to sign any such agreement which the client finds to be unsatisfactory or does not understand.
REPRESENTATION. Representation will commence upon the signing of the written engagement agreement. The counsel will provide competent representation, which requires legal knowledge,skill, thoroughness and preparation to handle those matters set forth in the written engagement agreement. Once employed, the counsel will act with reasonable diligence and promptness, as well as use his best efforts on behalf of the client, but he cannot guarantee results. The counsel will abide by the client’s decision concerning the objectives of representation, including whether or not to accept an offer of settlement, and will endeavor to explain any matter to the extent reasonably necessary to permit the client to make informed decisions regarding representation. During the course of representation and afterwards, the counsel may not use or reveal a client’s confidence or secrets, except as required or permitted by law.
COMMUNICATION:. The counsel will keep the client reasonably informed about the status of representation and will promptly respond to reasonable requests for information, including any reasonable request for an estimate respecting future costs of the representation or an appropriate portion of it. The client shall be truthful in all discussions with the counsel and provide all information or documentation required to enable the counsel to provide competent representation. During representation, the client is entitled to receive all pleadings and substantive documents prepared on behalf of the client and every document received from any other counsel of record. At the end of the representation and on written request from the client, the counsel will return to the client all original documents and exhibits. In the event that the counsel withdraws from representation, or is discharged by the client, the counsel will turn over to the substituting counsel (or, if no substitutions, to the client) all original documents and exhibits together with complete copies of all pleadings and discovery in a reasonable time of the counsel’s withdrawal or discharge.
ETHICAL CONDUCT. The counsel cannot be required to engage in conduct which is illegal, unethical, or fraudulent. In matters involving minor children, the counsel may refuse to engage in conduct which, in the counsel’s professional judgment, would be contrary to the best interest of the client’s minor child or children. A counsel who cannot ethically abide by his client’s directions shall be allowed to withdraw from representation.
FEES. The counsel’s fee for services may not be contingent upon the securing of a dissolution of marriage, upon obtaining custody, or be based upon the amount of maintenance, child support, or property settlement received, except as specifically permitted under Supreme Court rules. The counsel may not require a non-refundable retainer fee, but must remit back any overpayment at the end of the representation. The counsel may enter into a consensual security arrangement with the client whereby assets of the client are pledged to secure payment of legal fees or costs, but only if the counsel first obtains approval of the Court as required. The counsel will prepare and provide the client with an itemized billing statement detailing hourly rates (and/or other criteria), time spent, tasks performed, and costs incurred on a regular basis, at least quarterly. The client should review each billing statement promptly and address any objection or error in a timely manner. The client will not be billed for time spent to explain or correct a billing statement. If an appropriately detailed written estimate is submitted to a client as to future costs for a counsel’s representation or a portion of the contemplated services (i.e., relative to specific steps recommended by the counsel in the estimate) and, without objection from the client, the counsel then performs the contemplated services, all such services are presumptively reasonable and necessary, as well as to be deemed pursuant to the client’s direction. In an appropriate case, the client may pursue contribution to his or her fees and costs from the other party.
DISPUTES: The counsel-client relationship is regulated by the California Rules of Professional Conduct, and any dispute be reviewed under the terms of such Rules.
Make sure that you understand your fee agreement from the very start. If you are unable to speak to your attorney at this point of your relationship with him or her, or if your attorney is unable or unwilling to speak to you in words you understand then take this as a real sign that trouble lies ahead. Find yourself a different attorney!
What Determines The Cost Of My Case
There are many factors that will determine the ultimate cost of your suit. Some of the factors to be considered are:
The time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal services properly. The likelihood that the acceptance of this particular employment will preclude other employment by the lawyer.
Customary charges in the county in which the litigation takes place for similar legal services. Often the fees will depend on the amount involved in the matter and the results obtained. The time limitations imposed by the client or by the circumstances.
The nature and length of the professional relationship between the lawyer and the client. Repeat clients may be in a position to negotiate a lower rate with the attorney.
The experience, reputation and ability of the lawyers performing the services.
Attorney Christina Trujillo
