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ATTORNEY-CLIENT RELATIONSHIP e. CLIENT LIABILITY: FEES

Preliminary Questions Hypo:

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ATTORNEY-CLIENT RELATIONSHIP e. CLIENT LIABILITY: FEES

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  1. Preliminary Questions • Hypo: • C comes to your office with a boundary dispute with his neighbor. You agree orally to represent him. You both then sign a written retainer agreement that says only “C will be billed monthly for fees and expenses”. After the first month you send C a bill for services to date. • Do you have a claim for a fee? 1.5(b) • If so, how will it be measured? 1.5(a) • If you disagree on amount, who decides? THE FEE AGREEMENT AND THE AMOUNT ATTORNEY-CLIENT RELATIONSHIPe. CLIENT LIABILITY: FEES

  2. Fee Agreement and Amount c’t’d • Hypo:after lawyer and client orally agree to representation, lawyer begins substantial work on the matter, then presents client with a written agreement on fees, specifying in detail what fees are to be changed and how they are to be calculated. Client signs. • Is this agreement enforceable? N. 5 p. 166 • Does it meet the requirements of 1.5(b)? If not, what is the consequence? • general law of fiduciary relationships: rebuttable presumption of undue influence! • Double burden of proof on lawyer!

  3. Problem p. 158 • After discharge, lawyer bills executor of estate under their K, calling for two fee categories • “customary legal services” to client as executor: 2.5% of value of estate ($24,00) • “additional legal services” to client as defendant in will contest and constructive trust suit: $100/hr x 1020 hrs ($102,000) • Is this total of $126,000 “reasonable”? Are parts of it “reasonable”? • who bears the burden of proof? • what more do we want to know before answering?

  4. Problem p. 158 c’t’d • 3 specified practices in determining fees: which if any is impermissible? What is the standard? F.O. 93-379, p. 161 • rounding time up to nearest 15 minutes • flat charge per phone call • surcharge for each litigation file, to cover (i) costs of doing computer research and (ii) costs of photocopying

  5. Problem p. 158-60 c’t’d • Travel for one client, work for another – FO 93-379, p. 161 • can you bill the time to both? • if not, why not? doesn’t that present a perverse incentive? • 3-hour flight, one hour of work for each, bill 3d hour to client for whom you travel?

  6. Problem pp. 158-60 c’t’d • Federal civil rights suit, federal fee-shifting statute awards winner attorneys’ fees – nn. 10, 11 pp. 167-8 • What is the “American rule”? Does it make sense? • Suppose Delores and Walters agree on a fee of $200/hr for his services in this suit. Will that control the fee to be taxed to the defendant? • If not, how will it be measured? • If the award is less than the agreed fee, can Walters still get the difference from Delores?

  7. Types of Legal Fees • “Retainer fees” – can a lawyer charge a minimum fee just for taking the case? How would its “reasonableness” be measured? • What are the problems with “billable hours”? ABA report, p. 169 • Alternative approaches • flat rate – how to fix it? • menu of services • fixed amount per time period, with additions • Discounting – how to do this? • Contingent fees

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