Sorted by Commenter - Ethics - State of California

Sorted by Commenter - Ethics - State of California Sorted by Commenter - Ethics - State of California

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10.08.2013 Views

ABA Model Rule Rule 1.5 Fees (3) the fee customarily charged in the locality for similar legal services; (4) the amount involved and the results obtained; (5) the time limitations imposed by the client or by the circumstances; (6) the nature and length of the professional relationship with the client; (7) the experience, reputation, and ability of the lawyer or lawyers performing the services; and (8) whether the fee is fixed or contingent. Commission’s Proposed Rule * Rule 1.5 Fees for Legal Services (3) the fee customarily charged in the locality for similar legal services; (45) the amount involved and the results obtained; (56) the time limitations imposed by the client or by the circumstances; (67) the nature and length of the professional relationship with the client; (78) the experience, reputation, and ability of the lawyer or lawyers performing the services; and (89) whether the fee is fixed or contingent.; Explanation of Changes to the ABA Model Rule The Commission recommends that Model Rule 1.5(a)(3) be rejected because the identified factor, while relevant to determining the reasonableness of a fee, is not relevant to determining the conscionability of a fee. Subparagraph (5) is identical to Model Rule 1.5(a)(4). Subparagraph (6) is identical to Model Rule 1.5(a)(5). Subparagraph (7) is identical to Model Rule 1.5(a)(6). Subparagraph (8) is identical to Model Rule 1.5(a)(7). Subparagraph (9) is identical to Model Rule 1.5(a)(8). RRC - 4-200 1-5 - Compare - Rule Comment Explanation - DFT5 1 (02-08-10)KEM-ML-RD-KEM.doc {Note: Green/Italic text in the middle column indicates Model Rule text that has been moved rather than stricken.} 214

ABA Model Rule Rule 1.5 Fees (b) The scope of the representation and the basis or rate of the fee and expenses for which the client will be responsible shall be communicated to the client, preferably in writing, before or within a reasonable time after commencing the representation, except when the lawyer will charge a regularly represented client on the same basis or rate. Any changes in the basis or rate of the fee or expenses shall also be communicated to the client. (c) A fee may be contingent on the outcome of the matter for which the service is rendered, except in a matter in which a contingent fee is prohibited by paragraph (d) or other law. A contingent fee agreement shall be in a writing signed by the client and shall state the method by which the fee is to be determined, including the percentage or percentages that shall accrue Commission’s Proposed Rule * Rule 1.5 Fees for Legal Services (10) the time and labor required; (11) whether the client gave informed consent to the fee or in-house expense. (b) The scope of the representation and the basis or rate of the fee and expenses for which the client will be responsible shall be communicated to the client, preferably in writing, before or within a reasonable time after commencing the representation, except when the lawyer will charge a regularly represented client on the same basis or rate. Any changes in the basis or rate of the fee or expenses shall also be communicated to the client. (c) A fee may be contingent on the outcome of the matter for which the service is rendered, except in a matter in which a contingent fee is prohibited by paragraph (d) or other law. A contingent fee agreement shall be in a writing signed by the client and shall state the method by which the fee is to be determined, including the percentage or percentages that shall accrue Explanation of Changes to the ABA Model Rule Subparagraph (10) consists of language that has been moved from Model Rule 1.5(a)(1) and given its own subparagraph. Subparagraph (11) has no counterpart in the Model Rule. It is carried forward from current rule 4-200(B)(11), which provides: “(11) The informed consent of the client to the fee.” The Commission recommends deletion of Model Rule 1.5(b), which prescribes what a lawyer is obligated to communicate to a client about the scope of representation and basis or rate of the fee. Those requirements are already addressed in Business & Professions Code § 6148. Under that statute, the client already has a remedy for a lawyer’s violation of the statute: having the contract voided. Section 6148(c). The Commission does not recommend that a violation of section 6147 subject a lawyer to discipline under this Rule in addition to the remedy provided in the statute. The Commission recommends deletion of Model Rule 1.5(c), which prescribes a lawyer’s duties when the lawyer is retained on a contingent fee basis. Those requirements are already addressed in Business & Professions Code § 6147. Under that statute, the client already has a remedy for a lawyer’s violation of the statute: having the contract voided. Section 6147(b). The Commission does not recommend that a violation of section 6147 subject a lawyer to discipline under this Rule in addition to the RRC - 4-200 1-5 - Compare - Rule Comment Explanation - DFT5 1 (02-08-10)KEM-ML-RD-KEM.doc {Note: Green/Italic text in the middle column indicates Model Rule text that has been moved rather than stricken.} 215

ABA Model Rule<br />

Rule 1.5 Fees<br />

(3) the fee customarily charged in the locality for<br />

similar legal services;<br />

(4) the amount involved and the results<br />

obtained;<br />

(5) the time limitations imposed <strong>by</strong> the client or<br />

<strong>by</strong> the circumstances;<br />

(6) the nature and length <strong>of</strong> the pr<strong>of</strong>essional<br />

relationship with the client;<br />

(7) the experience, reputation, and ability <strong>of</strong> the<br />

lawyer or lawyers performing the services;<br />

and<br />

(8) whether the fee is fixed or contingent.<br />

Commission’s Proposed Rule *<br />

Rule 1.5 Fees for Legal Services<br />

(3) the fee customarily charged in the locality<br />

for similar legal services;<br />

(45) the amount involved and the results<br />

obtained;<br />

(56) the time limitations imposed <strong>by</strong> the client or<br />

<strong>by</strong> the circumstances;<br />

(67) the nature and length <strong>of</strong> the pr<strong>of</strong>essional<br />

relationship with the client;<br />

(78) the experience, reputation, and ability <strong>of</strong> the<br />

lawyer or lawyers performing the services;<br />

and<br />

(89) whether the fee is fixed or contingent.;<br />

Explanation <strong>of</strong> Changes to the ABA Model Rule<br />

The Commission recommends that Model Rule 1.5(a)(3) be<br />

rejected because the identified factor, while relevant to<br />

determining the reasonableness <strong>of</strong> a fee, is not relevant to<br />

determining the conscionability <strong>of</strong> a fee.<br />

Subparagraph (5) is identical to Model Rule 1.5(a)(4).<br />

Subparagraph (6) is identical to Model Rule 1.5(a)(5).<br />

Subparagraph (7) is identical to Model Rule 1.5(a)(6).<br />

Subparagraph (8) is identical to Model Rule 1.5(a)(7).<br />

Subparagraph (9) is identical to Model Rule 1.5(a)(8).<br />

RRC - 4-200 1-5 - Compare - Rule Comment Explanation - DFT5 1 (02-08-10)KEM-ML-RD-KEM.doc {Note: Green/Italic text in the middle column indicates Model Rule text that has been moved rather than stricken.}<br />

214

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