According to Rules of Professional Conduct (Ethics Rules),
a lawyer's fee must be reasonable, taking into account the
following factors:
1. The time and labor required, the novelty and difficulty
of the questions involved, and the skill required to perform
the legal service properly;
2. The likelihood that acceptance of this client may preclude
the lawyer from employment by other clients (i.e. loss of
work due to conflicts of interest);
3. The fee charged for similar legal services in the area;
4. The dollar amount involved in the matter at issue and
the results obtained;
5. The time limitations imposed by the client or by the
circumstances;
6. The nature and length of the lawyer's professional relationship
with the client;
7. The experience, reputation, and ability of the lawyer
performing the services; and
8. Whether the fee is fixed (i.e. per hour or flat) or
contingent (i.e. based upon a successful outcome)
When a lawyer has not regularly represented the client,
the basis or rate of the fee shall be communicated to the
client, preferably in writing, before or within a reasonable
time after beginning the representation of the client. A
fee may be contingent on the outcome of a matter for which
the legal service is rendered, except in a matter involving
a: criminal charge, dissolution or invalidity of marriage,
legal separation, and any matter prohibited by law or if
it is unconscionable, unreasonable and unfair.
The dividing of a fee between lawyers who are not in the
same firm may be made only if:
1. The division is in proportion to the services performed
and responsibility assumed by each lawyer;
2. The client consents to the employment of an additional
lawyer after a full disclosure of the division of fees to
be made;
3. The total fee is reasonable; and
4. The division of a fee is set forth in writing signed
by the lawyers and by the client with full understanding
and knowledge of the client.
At the time of hiring a lawyer, it is preferable that the
lawyer and client sign a written engagement agreement (or
contingency agreement if based on a contingency fee). In
the engagement agreement, a lawyer should state the matter
to be performed, statement of no conflict of interest, any
retainer to be paid and conditions of this account, the
fee (i.e. hourly rate of flat fee), a listing of all associated
costs that can be charged (new accounts, telephone calls,
postage, office supplies, etc.), a confidentiality statement
and a statement of ethical standards including the right
of the client to terminate the lawyer's employment and the
lawyer's right to terminate the client's representation. |
