Problem 5: Four Up to the clients partners want to Notice must be provided to departing separate off into a new current clients lawyer’s firm can they take – Departing lawyer cannot disparage clients, and are there firm to convince clients to go any restrictions on new Firm and departing lawyer must take firm? care to protect client interests Cannot have terms prohibiting practicing within certain ranges for certain durations Problem 6: Can attorney No. Expressly rejected, because Same agree to not take any restricts right to practice lawyer’s cases in any area as part of a legal malpractice settlement? VII. ATTORNEY FEES MR: Contingent fee agreements must be in writing. Other fee agreements do not need to be in writing Prohibits contingent fees in criminal case and certain domestic relations cases B&P 6147 & 6148: Contingency contracts must be in writing, generally must tell client contingency fee is negotiable. All cases with fees and costs above $1000 must be in writing Contingent fee agreements must be in writing prohibit contingent fee agreements in criminal or domestic relations cases, as long as the Doesn’t agreement is in writing Unreasonable fees MR: No unreasonable fee CRPC: No unconscionable fee Does not consider fee customarily charged in community Does consider: Amount of fee in proportion to value of services Relative sophistication of attorney and client informed consent Client’s Advance on retainer fees v. true retainer fees Advance initial deposit to show client is serious and begin to cover costs – Must go into a client trust account until you bill the hours and incur the costs True retainer non-refundable fee simply to guarantee a availability at a particular time to – lawyer’s perform services Excessive fees (Robert Wheeler case) Must factor in time and labor, novelty, skill, customary fee, time limitations In this case, court found the fee was excessive Referral fees 1. Refer the case, but want to stay on the pleadings (OK under MR and CRPC) MR: split in fees must be proportional to work performed Client must agree to split in writing that discloses each share lawyer’s Total fee must be reasonable CRPC: Client must give written consent to the fee sharing and be informed how the fee will be split Fee be higher than it would have been without adding the new lawyer/firm can’t
Problem 5: Four partners want to separate off into a new firm – can they take clients, and are there any restrictions on new firm? Up to the clients Notice must be provided to departing lawyer’s current clients Departing lawyer cannot disparage firm to convince clients to go Firm and departing lawyer must take care to protect client interests Cannot have terms prohibiting practicing within certain ranges for certain durations Problem 6: Can attorney agree to not take any cases in any area as part of a legal malpractice settlement? No. Expressly rejected, because restricts lawyer’s right to practice Same VII. ATTORNEY FEES MR: Contingent fee agreements must be in writing. Other fee agreements do not need to be in writing Prohibits contingent fees in criminal case and certain domestic relations cases B&P 6147 & 6148: Contingency contracts must be in writing, generally must tell client contingency fee is negotiable. All cases with fees and costs above $1000 must be in writing Contingent fee agreements must be in writing Doesn’t prohibit contingent fee agreements in criminal or domestic relations cases, as long as the agreement is in writing Unreasonable fees MR: No unreasonable fee CRPC: No unconscionable fee Does not consider fee customarily charged in community Does consider: Amount of fee in proportion to value of services Relative sophistication of attorney and client Client’s informed consent Advance on retainer fees v. true retainer fees Advance – initial deposit to show client is serious and begin to cover costs Must go into a client trust account until you bill the hours and incur the costs True retainer – non-refundable fee simply to guarantee a lawyer’s availability at a particular time to perform services Excessive fees (Robert Wheeler case) Must factor in time and labor, novelty, skill, customary fee, time limitations In this case, court found the fee was excessive Referral fees 1. Refer the case, but want to stay on the pleadings (OK under MR and CRPC) MR: split in fees must be proportional to work performed Client must agree to split in writing that discloses each lawyer’s share Total fee must be reasonable CRPC: Client must give written consent to the fee sharing and be informed how the fee will be split Fee can’t be higher than it would have been without adding the new lawyer/firm