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Sorted by Commenter - Ethics - State of California

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The critical question here is not whether a rogue lawyer can gouge, exploit, and<br />

steal from<br />

retainers are prudent or wise in any given situation (this should be left to the lawyers and<br />

fully-informed clients to decide between<br />

agreement that meets the Pr<strong>of</strong>. Code<br />

1.5ea)). 26 Rather , the critical inquiry is fraudulent or<br />

nonrefundable retainers is nonetheless so corrosive as to require a per se prohibition.<br />

answer to this question is a resounding no.<br />

First, the , though at times mistaken about the proper<br />

terminology used to , has always recognized<br />

nonrefundable retainer that permits a lawyer to charge an<br />

excessive fee. 27 That is , the , as with<br />

arrangement, has always been subject to well-established pr<strong>of</strong>essional rules that provide a<br />

sufficient basis on<br />

nonrefundable retainer" from a naIve client, does little or no work, and then, after being<br />

fired, keeps the client's money. <strong>by</strong>-case rule against<br />

charging excessive fees eRule 4-200 <strong>of</strong> the Rules <strong>of</strong><br />

longstanding rule requiring lawyers to refund<br />

representation eRule <strong>of</strong> Pr<strong>of</strong>essional Conduct 1. 16).<br />

the existing protections against unreasonable and unconscionable fees demand that under<br />

a nonrefundable retainer arrangement, if a<br />

without cause, the client is entitled to a full refund.<br />

Second, the Bar membership who have relied on these types <strong>of</strong> fee<br />

have also recognized that there are unanticipated events, as there are in any contractual<br />

26 Do<br />

);<br />

determine that a law license is not a permit to steal, pillage, and plunder?<br />

27 A<br />

200(A) <strong>of</strong> the Rules <strong>of</strong><br />

, and will be , evaluated for reasonableness. See, e. Rule<br />

clients <strong>by</strong> charging unconscionable fees); South Carolina Rule 1. 16( d) ("The lawyer may<br />

retain a<br />

(explicitly<br />

acknowledging the propriety <strong>of</strong><br />

fee was not "clearly excessive In the Matter <strong>of</strong> Scapa 2 Cal. <strong>State</strong> Bar Ct. Rptr. 635<br />

*24 (Rev. Dept., 1993) (finding lawyers attempted to charge "unconscionable fees" under<br />

Rule 4-200).<br />

);<br />

160

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