Transactions with Persons other than Clients
Communication With Person Represented by Counsel
Opinion Number:
20050059
- Rule Number:
4.2; 1.5
QUESTION: Attorney was hired to get Client's sick leave benefits from former employer and to apply them retroactively to Client's retirement. Client was advised that the retainer would not cover filing fees. Attorney offered to prepare a petition and first set of discovery, after which Client would have 60 days to decide if more legal assistance was needed. Attorney immediately prepared the documents and sent them to Client. When Client later inquired about the status of the case, Attorney advised Client of the situation over the phone and again in writing. Client replied with a letter stating that Attorney was to file the petition. Attorney informed Client that Attorney's office would not be further involved. Client responded by threatening to file a bar complaint against Attorney if Client's retainer fee was not refunded. Attorney feels uncomfortable with further direct contact with Client and solicits advice and guidance.
ANSWER: The Rules of Professional Conduct do not prohibit Attorney from having further direct contact with Client, based on the information presented. Even if Client files a fee dispute or bar complaint, Attorney is not prohibited from direct contact unless Client is represented by counsel in that matter. In that event, any contact would have to be through Client's counsel or with the counsel's consent, under Rule 4-4.2. Under 4-4.2, Client would not be considered to be represented by disciplinary counsel in a bar complaint, nor would Client be considered to be represented by the fee dispute program if Client filed a fee dispute. There are no "nonrefundable" fees in Missouri. The only fee where a client is not entitled to a refund is a fee that has been earned by the attorney. In determining whether the fee has been earned, all factors set forth in Rule 4-1.5(a) may be considered.
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Client-Lawyer Relationship
Fees
Opinion Number:
20020003
- Rule Number:
1.5(e)
QUESTION: Attorney's firm had an agreement that while the partners were together and working in the same firm, they executed agreements between them which addressed the handling of contingent fee cases in the event one of the partners left the firm and the client(s) elected that the departing attorney should continue to handle his or her case. The agreement provided that in such an event, the firm and the departing attorney would each be responsible for fifty percent of the expenses of the litigation until conclusion, and in the event of a recovery, the firm and departing attorney would share the contingent fee on a 50/50 basis. Can the firm ethically continue to fund the expenses on these cases on a 50/50 basis and thereafter share fees on a 50/50 basis? Is there preferred documentation other than that which was used that could be utilized to permit the firm to honor its agreements?
ANSWER: The arrangement Attorney has described is permissible under Rule 4-1.5(e), if Attorney has followed all of the requirements of that rule. This arrangement would not be under the proportionality approach to that rule. Therefore, it would be necessary for the firm and the departing attorney to comply with the requirement that "by written agreement with the client, each lawyer assumes joint responsibility for the representation." The joint responsibility includes all forms of professional responsibility for the representation.
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Client-Lawyer Relationship
Fees
Opinion Number:
20000219
- Rule Number:
1.5
QUESTION: Attorney was employed as an associate in a firm. Attorney's clients signed an employment contract with the firm. Attorney changed firms and all of Attorney's clients that Attorney brought to the former firm elected to follow Attorney to the new firm. Each client signed an employment contract with the new firm. When Attorney left the old firm, there was a dispute as to the amounts of the liens the former firm would assert against files Attorney took to the new firm. The former firm wanted a lien for any costs and expenses which had been fronted by the old firm. Attorney had no dispute with this. However, the former firm insisted on an across the board 1/3 lien on each case no matter how much work Attorney had done on the cases while employed there. Shortly after leaving the former firm, Attorney settled two cases and gave the former firm 1/3 of the attorneys fees, plus costs and expenses. This seemed reasonable given the fact that Attorney had done a considerable amount of work on the cases while at the former firm. Attorney is in the process of settling some of the other cases that Attorney brought to the new firm. Hardly any work had been done on these cases before Attorney left the former firm and Attorney does not believe that the former firm is entitled to 1/3 of the attorney fee. The former firm has asserted liens so that the former firm is a payee on all settlement checks. It is Attorney's understanding that the former firm cannot assert liens for a percentage of the fees, but that the former firm must assert the liens under quantum meruit and prove time spent on the cases. Attorney would also like to know whether or not the former firm can interfere with the disbursement of Attorney's client's settlement proceeds by refusing to endorse the settlement checks until the fee issue is resolved. If not, does Attorney's present firm hold the former firm's fees in trust until the dispute can be settled? Does this mean that Attorney will have to file an equity suit each and every time Attorney settles one of the cases Attorney took to the new firm?
ANSWER: Under Rule 4-1.5(e), the fees may be shared in proportion to the work performed on each case while Attorney was a member of the firm. Attorney should work with the former firm to arrive at a method to ensure that the client receives his or her undisputed funds in a timely manner. This may be accomplished by separate settlement checks or an agreement to hold the disputed funds in a trust account until the dispute is resolved. This could be Attorney's regular trust account or a separate trust account established for this purpose. It may not be necessary for Attorney to file suit to resolve the disputed amounts.
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Client-Lawyer Relationship
Diligence
Opinion Number:
20000172
- Rule Number:
1.3; 1.16(b); 1.5
QUESTION: Attorney would like to add a provision to Attorney´s standard engagement letter for civil cases, particularly domestic relations cases. Is it permissible to state in the engagement letter that if the client does not make payment, Attorney will stop working on his or her case? Attorney would like to state that Attorney will not continue to work on a client´s case if no payments are made. ANSWER: Attorney may not include the provision Attorney proposes in Attorney´s engagement letter. Under Rule 4-1.3, Attorney has an obligation to diligently represent Attorney´s client, unless Attorney withdraws. If Attorney has not been paid, Attorney´s option is to continue to diligently represent the client and seek payment, or seek to withdraw. Attorney may seek to withdraw under Rule 4-1.16(b), only if withdrawal may be accomplished without ´material adverse effect on the interests of the client.´
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Client-Lawyer Relationship
Fees
Opinion Number:
20000090
- Rule Number:
1.5
QUESTION: Attorney has been approached by children of a decedent to represent them on a contingent fee basis in attempting to secure what they believe is their portion of their decedent´s intestate estate. There is a dispute involving other family members. Is it appropriate to draw a contract where Attorney obtains a small retainer up front and agree to thereafter represent them on a contingency fee basis? ANSWER: The fee agreement Attorney proposes would not, on its face, violate Rule 4-1.5, relating to fees. The overall fee must be reasonable, taking into account the factors set forth in that rule. The reasonableness of the actual fee should be reviewed at the conclusion of the representation.
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Client-Lawyer Relationship
Fees
Opinion Number:
20000195
- Rule Number:
1.5(e)
QUESTION: Attorney is handling a case that was previously handled by an attorney who has been suspended. Attorney would like to pay the suspended attorney some of the attorney fees collected on the case. Is this permissible? ANSWER: It is permissible for Attorney to share fees with a suspended attorney, as long as that attorney earned the fees prior to suspension.
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Client-Lawyer Relationship
Fees
Opinion Number:
20000080
- Rule Number:
1.5(a)
QUESTION: Attorney was retained by Client for a dissolution. Client endorsed the Domestic Relations Employment Agreement. Attorney explained to Client that the retainer was non-refundable. Client contacted Attorney a few days later and told Attorney that Client and Spouse were attempting to reconcile their marriage. Client requested that Attorney leave the dissolution on file, but hold off on any action. The following day, Client contacted Attorney demanding a refund of the retainer. Attorney also received a letter from Client, now directing Attorney to dismiss the dissolution action. Client signed the dismissal drafted by Attorney and it has been filed. Should Attorney refund any portion of the retainer? ANSWER: Rule 4-1.5(a) sets out the factors to be considered in determining the reasonableness of a fee. The available information is not sufficient to determine whether Attorney´s fee would be reasonable. In general, it would seem that factors (1) and (7) would be included in Attorney´s hourly rate. Attorney should review the other factors to determine whether, in this case, there are factors to justify making the fee nonrefundable. Unless such factors exist, it would be necessary to refund the amount in excess of the hours Attorney worked on this matter. If Attorney and the client are unable to resolve this matter, Attorney should consider advising the client of the Fee Dispute Resolution Program.
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Client-Lawyer Relationship
Fees
Opinion Number:
20000025
- Rule Number:
1.5(c); 3.7
QUESTION: Attorney´s child was involved in a car accident as a passenger. May Attorney represent Attorney´s minor child in a claim for damages just as Attorney would for someone unrelated? If so, is Attorney entitled to a contingent fee based upon the recovery? Would it make a difference if Attorney represented Attorney´s child only up to the point where the claim was settled against both insurance carriers, and if a lawsuit needed to be filed, Attorney involved other counsel in the case at that time? ANSWER: Based solely on the information Attorney has provided, Attorney may represent Attorney´s child without violating any ethical provisions. However, if Attorney is likely to be a necessary witness, Attorney would violate Rule 4-3.7, if Attorney acted as an advocate at trial. Attorney may represent Attorney´s child on a contingent fee basis. Attorney would need to enter into a written contract with the next friend, in order to comply with Rule 4-1.5(c).
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Client-Lawyer Relationship
Safekeeping Property
Opinion Number:
20000023
- Rule Number:
1.15; 1.5
QUESTION: Attorney represented plaintiff in a personal injury action. Attorney promised to pay various health care providers from the settlement proceeds of the case while the case was pending. Attorney did this with the client´s knowledge and consent. When the matter settled, the client would not give Attorney permission to pay the client´s health care providers from the settlement proceeds. Attorney gave the client several months to work out a settlement with the health care providers, but when the client could not work out a settlement, Attorney filed an interpleader action. Is it ethical for Attorney to claim attorney´s fees for time incurred in the interpleader action? Is it ethical for Attorney to request reimbursement for funds used to file and serve the interpleader action on all parties? ANSWER: Attorney may claim attorney´s fees and expenses related to the interpleader action.
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Client-Lawyer Relationship
Fees
Opinion Number:
980178
- Rule Number:
1.5
QUESTION: Attorney has been contacted by a potential client concerning the correction of a divorce decree. The client was previously represented by another attorney. The decree omits any mention of pension rights, even though they were discussed and the judge orally granted the rights at the hearing. May Attorney represent the client for the purpose of amending the decree to include pension rights and take as compensation a percentage of pension payments made in the future? Attorney would charge no fee if pension rights were not secured. ANSWER: As long as alimony or support will not be involved, Attorney may take the case Attorney described on a contingency fee basis without violating Rule 4-1.5(d)(1).
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Client-Lawyer Relationship
Fees
Opinion Number:
980035
- Rule Number:
1.5
QUESTION: Attorney´s firm received a letter from a company offering to set up an accounts receivable program that would allow the firm´s delinquent clients the ability to pay fees with a credit card. Are there any ethical constraints in offering clients the ability to pay fees by credit card? ANSWER: It is permissible for Attorney to accept payment of legal fees through routine credit card transactions using standard credit cards such as Visa, Mastercard, Discover or American Express. If Attorney´s arrangement with the company would require any unusual arrangements involving the credit card transaction, the answer could change.
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Client-Lawyer Relationship
Fees
Opinion Number:
970217
- Rule Number:
1.5
QUESTION: Attorney has been approached by a client wishing to file a post dissolution Motion to Divide Omitted Marital Property. May Attorney represent the client on a contingent fee basis? ANSWER: Under the circumstances Attorney has described, a contingent fee arrangement would violate Rule 4-1.5(d)(1) if issues regarding alimony or child support can be raised or re-opened. If those issues cannot be raised, Attorney may take the case on a contingency fee basis.
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Client-Lawyer Relationship
Communication
Opinion Number:
970177
- Rule Number:
1.4;1.5
QUESTION: May Attorney charge a client in a contingency fee case for the hourly rate of the legal assistant working on the case in addition to the contingent fee in a circumstance in which this was fully disclosed and understood by the client? ANSWER: As long as this arrangement is fully disclosed to and understood by the client it is permissible as long as it does not result in an unreasonable fee. If, at the conclusion of the matter, the fee is unreasonable under all of the circumstances, it would violate Rule 4-1.5.
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Client-Lawyer Relationship
Conflict of Interest: Prohibited Transactions
Opinion Number:
970123
- Rule Number:
1.8(e);1.5;1.4
QUESTION: Attorney represents a client who is not indigent. The client´s obligation to pay attorney fees is contingent upon recovery. Question 1. May the employment contract with the client provide that, if there is no recovery, the client will not be responsible for repayment of the litigation costs and expenses advanced by the law firm? Question 2. May the employment contract provide that, if there is no recovery, the firm may, at its option, waive its claim against the client for reimbursement of costs and expenses? Question 3. May the parties enter into a fee contract which provides that, upon recovery, the client is responsible for litigation costs and expenses, but which employment contract is totally silent as to what occurs if there is no recovery? ANSWER: Question 1 and 2. Yes, see Rule 4-1.8(e)(1). Question 3. No. This would not constitute adequate communication with the client regarding the fee arrangement.
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Client-Lawyer Relationship
Fees
Opinion Number:
970104
- Rule Number:
1.5(d)
QUESTION: Attorney would like to represent A in a suit against B for paternity and child support. A cannot afford to pay the legal fees. May Attorney represent A on a contingency fee basis? No previous judgment has awarded child support. ANSWER: Rule 4-1.5(d) prohibits Attorney from entering into a contingency fee arrangement in the case Attorney has described.
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Client-Lawyer Relationship
Fees
Opinion Number:
970066
- Rule Number:
1.5
QUESTION: If Attorney borrows money in order to fund the litigation expenses in a case, may Attorney pass the interest on the loan through to the client? ANSWER: Attorney may pass these costs on to Attorney´s client, under certain conditions. Attorney´s client must agree to this arrangement, in general terms, at the outset of the representation. Assuming that these cases will be contingency fee cases, this arrangement should be covered in the written fee agreement. Additionally, Attorney should specifically explain this provision to the client, orally. At the time Attorney takes out any such loan, Attorney´s client should agree to the terms of the loan before the money is borrowed. This additional agreement must also be in writing since it would be an addendum to the original fee agreement.
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Client-Lawyer Relationship
Communication
Opinion Number:
970040
- Rule Number:
1.4;1.5
QUESTION: Question 1. Under an hourly fee contract, may Attorney include a clause that, after presenting the client with bill, Attorney will wait a specified period of time. If the client has not paid the bill through other means by that time, Attorney will bill the amount to the client´s credit card without the client separately signing the individual credit card slip? Question 2. In a criminal defense case, may Attorney include a clause in the contract that Attorney would take a certain fee up front. If a trial becomes necessary, Attorney would bill the additional fee associated with going to trial to the client´s credit card without the client separately signing the credit card slip? ANSWER: The answer to both Attorney´s questions is yes. The key to the situation is making certain that Attorney adequately communicates all of the ramifications of the agreement to the client. Simply including the written language in Attorney´s contract would not be sufficient. Attorney has an obligation to orally point out the provision and make sure the client understands it. It is suggested that Attorney set an upper limit, in the contract itself, of the aggregate amount Attorney will bill on the credit card. The contract should provide that the amount specified could only be exceeded with the client´s express written consent. Also, in addition to notifying the client of Attorney´s intent to bill a specified amount against the credit card, Attorney should send the client a receipt or confirmation when Attorney actually bills the card.
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Client-Lawyer Relationship
Fees
Opinion Number:
970016
- Rule Number:
1.5;1.4;1.6
QUESTION 1: May Attorney charge interest on Attorney fees? ANSWER 1: Attorney may charge interest as long as it is a part of Attorney´s initial contract with Attorney´s client and it is adequately communicated to Attorney´s client at that time. Additionally, Attorney must comply with all laws regarding charging interest, such as the federal Truth in Lending Law, if it is applicable to Attorney. QUESTION 2: May Attorney report delinquent debts to a credit reporting agency? ANSWER 2: Attorney may disclose such information to the limited extent necessary in the course of attempting to collect the debt but not solely for the purpose of disclosing the information.
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Client-Lawyer Relationship
Fees
Opinion Number:
960225
- Rule Number:
1.5(d)
QUESTION: May Attorney represent clients on a contingency fee basis if the representation would involve collection of the accrued balance of overdue child support payments under a final judgment? ANSWER: Yes.
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Client-Lawyer Relationship
Fees
Opinion Number:
960196
- Rule Number:
1.5
QUESTION: Attorney worked for a law firm and had an agreement that the firm received fifty percent of fees generated by the attorney. Attorney has left the firm and several clients in contingent fee cases have stayed with Attorney. No other attorneys at the firm worked directly on the cases but other attorneys did consult on the cases. The firm advanced costs and expenses on the cases. May Attorney honor the employment contract and share fifty percent of the fees with the firm if there is a recovery? ANSWER: Under Rule 4-1.5(e), Attorney may share the ultimate fee with Attorney´s former firm in the agreed upon percentage, if Attorney´s former firm continues joint responsibility for the representation and the client is informed and agrees in writing. Otherwise, Attorney may only share the fee in proportion to the services performed while Attorney was with the firm.
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Client-Lawyer Relationship
Fees
Opinion Number:
960178
- Rule Number:
1.5(e)
QUESTION: Attorney asks if it is permissible to share fees with an attorney from another state who is not licensed in Missouri and who referred a workers compensation case to Attorney. ANSWER: Based on the information Attorney has provided, the other attorney would be receiving the fee as a referral fee rather than as a fee based on the proportion of work performed or joint responsibility under Rule 4-1.5(e). Referral fees are prohibited under Rule 4-7.2(c) unless the referring entity is a registered referral service under Rule 4-10.1.
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Client-Lawyer Relationship
Communication
Opinion Number:
960066
- Rule Number:
1.4;1.5
QUESTION: Attorney asks whether it will violate the rules if Attorney includes a binding arbitration clause in the engagement letter or representation agreement. Attorney will include the warning clause required by section 435.460, R.S.Mo., above the signature line. ANSWER: Attorney will not violate the Rules of Professional Conduct by including a binding arbitration clause in Attorney´s contractual arrangement with Attorney´s clients. Attorney´s duty of communication, under Rule 1.4, requires Attorney to make certain that Attorney´s clients are aware of the provision and understand it.
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Client-Lawyer Relationship
Fees
Opinion Number:
960054
- Rule Number:
1.5(e);7.2(c);10.1
QUESTION: Attorney is a member of XYZ firm. ABC firm has approached Attorney regarding an arrangement in which ABC firm would refer clients to XYZ and receive a portion of the retainer paid by the client to XYZ firm, in accordance with a schedule established by the two firms. No portion of the arrangement calls for ABC to continue to be responsible for the matter or for the client to consent. ANSWER: Based on the information Attorney has provided, the arrangement Attorney proposes would violate the requirements for permissible fee sharing under Rule 4-1.5(e).
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Client-Lawyer Relationship
Fees
Opinion Number:
960025
- Rule Number:
1.5(d)
QUESTION: May Attorney enter into a contingent fee contract to file a contempt action in which Attorney agrees that Attorney´s fee will be a percentage of any amounts of any past due maintenance or child support collected as a result of filing the contempt action? ANSWER: Yes.
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Client-Lawyer Relationship
Fees
Opinion Number:
960017
- Rule Number:
1.5
QUESTION: May Attorney charge clients a finance charge on past due legal fees? ANSWER: Yes, as long as Attorney fully discloses this fact to the client before Attorney enters into a contract with the client. Additionally, Attorney must comply with any other provisions of law (for example, the federal Truth In Lending law) if they apply to Attorney´s situation. This opinion does not address legal issues related to provisions of law other than the Rules of Professional Conduct.
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Client-Lawyer Relationship
Fees
Opinion Number:
950259
- Rule Number:
1.5
QUESTION: Attorney is guardian ad litem for a minor. The minor was involved in an accident and Attorney obtained leave of court to pursue the claim but no attorney fee was mentioned. Attorney has now obtained recovery for the minor and has asked the court to award a percentage as attorney´s fee. May Attorney charge this fee if the court authorizes it? ANSWER: In light of the fact that Attorney will be applying to the court for Attorney´s fee award, Attorney will not violate Rule 4-1.5(c) if the court approves it as a reasonable fee. In requesting that amount, Attorney must disclose to the court that Attorney does not have a written contingent fee agreement. Attorney should remember that Rule 4-1.5(c) requires contingent fee agreements to be in writing. A contingent fee agreement should be executed early enough in the representation that the client still has options and is not put in the position of negotiating with an attorney who has been representing the client for some time. In future situations of this kind, Attorney should seek approval of this type of fee arrangement from the court at the outset.
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Client-Lawyer Relationship
Fees
Opinion Number:
950243
- Rule Number:
1.5
QUESTION: Attorney practices in the area of Social Security Disability and Supplemental Security Income. In cases in which benefits are obtained for a client who is unable to manage the client´s own benefits for reasons such as mental illness, a representative payee is appointed. The Social Security Administration has given permission for attorneys to act as representative payees and receive the standard fifty dollar fee. May Attorney serve in this capacity and accept this fee? ANSWER: Accepting the fee for serving as the representative payee, under the circumstances Attorney has described, would not violate any provision of the Rules of Professional Conduct.
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Client-Lawyer Relationship
Fees
Opinion Number:
950230
- Rule Number:
1.5
QUESTION: Attorney has represented the client in negotiating a structured settlement. Attorney would like to have the attorney fee, which is based on a contingency fee contract, paid up front. Attorney would apply the contingent fee percentage to the present value of the settlement. Would this violate the rules? ANSWER: Attorney may take attorney´s contingency fee up front if it is based on the present value of the structured settlement and Attorney has the consent of the client in the original contract or otherwise.
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Client-Lawyer Relationship
Fees
Opinion Number:
950134
- Rule Number:
1.5
QUESTION: Question 1. Attorney´s firm represents X in a personal injury case and a fixed fee case. May the firm enter into an agreement with X to withhold a fixed sum from the personal injury case to pay for the fixed fee case if it is understood that the fees are owed on the fixed fee case regardless of the outcome of the personal injury case? Question 2. What if X just gives a note on the fixed fee case and the firm agrees that X may wait until the completion of the personal injury case to pay? Question 3. If another firm is representing the client on the fixed fee case, may Attorney´s firm enter into an agreement with the client to pay the other firm´s fees from the proceeds of the personal injury case? ANSWER: The answer to all questions is "Yes," if the client agrees.
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Client-Lawyer Relationship
Fees
Opinion Number:
950034
- Rule Number:
1.5(c);1.2
QUESTION: Attorney and client propose to agree to language in the contingent fee contract which states: "Client shall not withhold Client´s consent to a reasonable offer of compromise or settle Client´s claims unreasonably." Is this permissible under the Rules of Professional Conduct? ANSWER: Yes. Such a provision in the contract would not authorize the attorney to unilaterally determine that a settlement was reasonable and to settle the case without the client´s express authority.
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Client-Lawyer Relationship
Fees
Opinion Number:
940184
- Rule Number:
1.5(d);1.15
QUESTION: Attorney proposes to pay the treating physician out of the settlement. This physician would have been an expert witness if the case had gone to trial. The physician accepted the patient on Attorney´s recommendation. A judgment has been entered in small claims court against the client/patient and the lawyer´s trust account is about to be garnished. The client has not consented to payment to the physician. ANSWER: Under Rules 4-1.5(d) and 4-1.15(a)-(c), Attorney may only pay the treating physician out of settlement funds if the client consents. If the client does not consent and the physician continues to assert a claim, Attorney must interplead the funds. Attorney must not allow funds to be removed from the trust account without the consent of the client unless it is pursuant to a court order in a matter in which the client´s interests were represented or in which the client chose not to be represented.
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Client-Lawyer Relationship
Fees
Opinion Number:
940181
- Rule Number:
1.5;1.4(b)
QUESTION: Attorney proposes to establish a fee schedule based on the medical model. The fee would be a set amount for each type of service with different rates for each service depending on whether the service was "brief," "intermediate´, or "extended." ANSWER: Rule 4-1.5 does not prohibit such a fee schedule as long as the fees themselves are reasonable. Rule 1.4(b) requires that the meaning of the terms "brief," etc. be adequately communicated to the clients.
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Client-Lawyer Relationship
Fees
Opinion Number:
940163
- Rule Number:
1.5;5.4
QUESTION: May Attorney accept credit cards for payment of fees? ANSWER: As a general rule, the answer is yes. However, this opinion does not imply blanket approval for any specific system an attorney may implement. Formal Opinion 112 which was issued in 1974 and indicated that this conduct was prohibited, because it would result in fee splitting, was withdrawn in 1982.
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Client-Lawyer Relationship
Fees
Opinion Number:
940162
- Rule Number:
1.5(e)
QUESTION: Attorney´s former partner is now a judge. Contingency fee cases of the partnership are still outstanding. May Attorney enter into an agreement to pay the former partner a portion of the fees received from these cases? Attorney performed all of the work on the contingency fee cases during the partnership. ANSWER: Attorney may share fees from these cases with the former partner to the extent the fees were earned during the partnership. The fees should be apportioned according to the terms of the partnership agreement. The former partner may also want to contact the Judicial Commission for an opinion.
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Client-Lawyer Relationship
Fees
Opinion Number:
940154
- Rule Number:
1.5(e)
QUESTION: Attorney was hired to represent a client who was in an auto accident in a distant state. Attorney associated with an attorney in that state. The total attorney fee will be one third. A substantial judgment was obtained. Attorney remained involved in the case but it was tried by the attorney in the other state. The proposed division of fees among the attorneys is 10% to Attorney and 90% to the attorney from the other state. The client has consented to this division. ANSWER: Based upon these facts, this arrangement would not violate Rule 4-1.5(e).
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Client-Lawyer Relationship
Fees
Opinion Number:
940153
- Rule Number:
1.5
QUESTION: May Attorney have a provision in the fee agreement which requires that any dispute, including claims for malpractice, be submitted to binding arbitration? ANSWER: This would not violate any provision of the Rules of Professional Conduct.
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Client-Lawyer Relationship
Fees
Opinion Number:
940111
- Rule Number:
1.5
QUESTION: Attorney represented a client on a contingency fee case. The client discharged Attorney. Attorney asserted a lien but made an offer to the client´s new attorney that Attorney would accept a lesser amount which was equal to the amount of a medical payment check that had already been received. Has Attorney violated the rules? ANSWER: Not based upon the information available. This office cannot make a factual determination regarding the reasonableness of the fee asserted in the context of an informal opinion.
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Client-Lawyer Relationship
Fees
Opinion Number:
940110
- Rule Number:
1.5(c)
QUESTION: May Attorney charge a contingency fee on proceeds awarded in a verdict as well as the interest which has accrued on the proceeds while they have been held in the court registry while post trial motions were pending? ANSWER: Yes, if this is clearly a provision of the written contract which is required by Rule 4-1.5(c). Attorney should be careful to calculate the interest on the proper amount depending on whether the contract called for Attorney´s fee to be calculated on the gross or net recovery.
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Client-Lawyer Relationship
Fees
Opinion Number:
940065
- Rule Number:
1.5;1.16(d)
QUESTION: Attorney accepted a case on a flat fee basis. Attorney now wishes to withdraw before the case is concluded due to the client´s lack of cooperation. Attorney states that, as a result of client´s lack of cooperation, attorney fees valuing several times the flat fee paid have been provided. May Attorney withdraw and, if so, what amount of refund, if any, is owed the client? ANSWER: Attorney may ask the court for leave to withdraw. This office cannot resolved factual issues such as the amount of a refund owed in the context of an informal advisory opinion.
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Client-Lawyer Relationship
Conflict of Interest: General Rule
Opinion Number:
940053
- Rule Number:
1.7;1.5
QUESTION: Attorney represents the driver and passenger who are plaintiffs in a case arising out of an automobile accident. Attorney has filed suit on behalf of the driver but not on behalf of the passenger. Attorney is hoping to resolve the driver´s case before the statute of limitations runs on the passenger´s case. Both clients have been informed of this action. Must Attorney withdraw from the passenger´s case now? If Attorney must withdraw, may Attorney assert a lien? How will the legal fees be calculated? ANSWER: To represent both the driver and passenger, Attorney must make a determination that the dual representation will not adversely affect representation of either party. Each client must be given full disclosure of the conflicts and potential conflicts involved in the situation. Each client must affirmatively act to consent. If a problem arises after representation is begun, this procedure must be repeated. If either client will not consent, Attorney must withdraw from representing both, unless both clients consent to Attorney continuing to represent one. Attorney may assert a lien for fees. The question of how fees will be calculated is a legal issue.
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Information About Legal Services
Direct Contact with Prospective Clients
Opinion Number:
930153
- Rule Number:
7.3;1.5;1.8(f)
QUESTION: FACTUAL SITUATION 1: Attorney will purchase information from a separate business obtained from police reports of traffic accidents. Attorney will solicit prospective clients from this information, by mail only. FACTUAL SITUATION 2: Attorney will be retained to represent drivers employed by a business in traffic ticket cases. Either the company or the drivers will retain Attorney. Attorney would charge a flat monthly fee per driver. Would this violate the rule on fees for months when a driver received ANSWER: FACTUAL SITUATION 1: This would not, as a general rule be a violation. However, special attention must be paid to Rule 4-7.3(c). It seems particularly likely that Rule 4-7.3(c)(1) would apply to some accident victims. FACTUAL SITUATION 2: This arrangement would not violate Rule 4-1.5. However, if the employer pays the retainer fee, special attention should be paid to Rule 4-1.8(f).
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Client-Lawyer Relationship
Fees
Opinion Number:
930121
- Rule Number:
1.5
QUESTION: Former associate and partner disagree regarding apportionment of fees and right of former partner to have continuing control over cases associate took. ANSWER: This office cannot make factual determinations but Rule 1.5 requires lawyer´s fee to be reasonable. It is incumbent on each to ensure that client is not billed twice for the same representation. Former partner only has right to control cases if former partner is acting as co-counsel with the knowledge and consent of the client. The decision on who the attorney will be belongs to the client.
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Client-Lawyer Relationship
Fees
Opinion Number:
930108
- Rule Number:
1.5
QUESTION: What is the appropriate apportionment of fees between two attorneys who worked together on the same case? ANSWER: This opinion request requires a determination of facts rather than application of the rules to an established set of facts. This office cannot determine the facts. Once the facts have been determined by all parties involved, this office could give an opinion applying the rules to the established facts.
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Client-Lawyer Relationship
Fees
Opinion Number:
930101
- Rule Number:
1.5(d)
QUESTION: May attorney take a domestic relations case on a contingent fee basis where the order granting the dissolution is final and neither alimony nor child support remain as issues? ANSWER: Yes.
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Client-Lawyer Relationship
Fees
Opinion Number:
930100
- Rule Number:
1.5(d)
QUESTION: May an attorney take a domestic relations case involving distribution of property on a contingent fee basis? The order granting the dissolution is final but maintenance is still an issue. ANSWER: No, it is prohibited by Rule 1.5(d).
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Law Firms and Associations
Professional Independence of a Lawyer
Opinion Number:
930090
- Rule Number:
5.4;1.5;7.2(c)
QUESTION: (1) May a lawyer enter into a direct contractual relationship with a potential client where the lawyer agrees to provide certain specifically delineated legal services in return for payment of a regular monthly retainer? (2) If yes, may a lawyer hire direct employees or contract with an independent contractor to promote, market, and sell the plan? (3) May an employee be compensated with a salary and receive bonuses based on performance? (4) May an independent contractor be used and paid on a flat fee or commission basis? ANSWER: The answer to all questions is yes. Neither an employee nor an independent contractor may be paid on the basis of the amount of fees paid to the attorney or billed by the attorney for legal services. That conduct would violate Rule 5.4, fee splitting with a non-lawyer.
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Client-Lawyer Relationship
Conflict of Interest: Prohibited Transactions
Opinion Number:
930085
- Rule Number:
1.8
QUESTION: May attorney enter into a contingent fee arrangement to collect on final judgment which was entered in a domestic relations case? Because payments to client as a result of collection action will be in installments over a lengthy period, may attorney require that client irrevocably designate attorney as payee of the payments? ANSWER: The contingent fee arrangement is not prohibited. The irrevocable assignment implicates Rule 1.8(a) on conflicts of interest.
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