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Sorted by Commenter - Ethics - State of California

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(7)<br />

(8)<br />

(9)<br />

(10)<br />

(11)<br />

(12)<br />

(13)<br />

Paragraph (e )(2) requires the<br />

nature <strong>of</strong> the fee <strong>by</strong> representing that the fee "is the lawyer s property on receipt."<br />

However, the critical issue is not what the fee is called but who owns or has any<br />

interest in the funds.<br />

Rather than protecting the client's entitlement to a refund <strong>of</strong> the " nonrefundable<br />

flat fee (see proposed Rule 1.5(e)(2)(v)),<br />

the client from receiving a refund if these funds are the subject <strong>of</strong> any<br />

state seizure, jeopardy assessment, restraining order or forfeiture, or even<br />

attachment <strong>by</strong> potential creditors. The lawyer cannot return all or part <strong>of</strong> the<br />

the client because the seizing agency will be entitled to any fee refund.<br />

Paragraph ( s claims, exposes<br />

performing all types <strong>of</strong> legal services to extrinsic litigation or significant financial<br />

risk <strong>by</strong> facilitating the restraint and/or seizure <strong>of</strong> fees if any client has a potential<br />

criminal or bankruptcy problem or has a dispute with the IRS, the Franchise Tax<br />

Board, the S. , or is the potential target <strong>of</strong> a<br />

restraining order, or is vulnerable to potential creditors' claims.<br />

Because Paragraph 1.5(e)(2) will<br />

restraint/forfeiture or civil seizure, compliance with Paragraph (e) deprives those<br />

accused <strong>of</strong> crimes <strong>of</strong> their<br />

and many civil clients <strong>of</strong> their ability to obtain any legal representation.<br />

Paragraph (e )(2) permits a client to , before<br />

all <strong>of</strong> the<br />

substantial amount <strong>of</strong> work, and will<br />

lawsuits, or Bar complaints.<br />

The Proposal is confusing and internally<br />

client bar complaints, arbitration claims, and civil actions involving fee<br />

for honorable lawyers acting in good faith.<br />

Paragraph , detailed wording<br />

included in flat<br />

unfamiliar with these new Rules and the complex fact patterns that will<br />

It is also sanctified" <strong>State</strong> Bar fee forms (specifically the<br />

fixed fee" clause) that have been<br />

past 20 years and represent the "gold standard" for <strong>California</strong> lawyers.<br />

3 In her article in the<br />

<strong>California</strong> Bar Journal legal ethics expert Diana Karpman urges<br />

<strong>California</strong> lawyers to use these <strong>State</strong> Bar fee forms:<br />

141

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