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Sorted by Commenter - Ethics - State of California

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ABA Model Rule<br />

Rule 1.5 Fees<br />

(b) The scope <strong>of</strong> the representation and the basis or<br />

rate <strong>of</strong> the fee and expenses for which the client<br />

will be responsible shall be communicated to the<br />

client, preferably in writing, before or within a<br />

reasonable time after commencing the<br />

representation, except when the lawyer will<br />

charge a regularly represented client on the<br />

same basis or rate. Any changes in the basis or<br />

rate <strong>of</strong> the fee or expenses shall also be<br />

communicated to the client.<br />

(c) A fee may be contingent on the outcome <strong>of</strong> the<br />

matter for which the service is rendered, except<br />

in a matter in which a contingent fee is<br />

prohibited <strong>by</strong> paragraph (d) or other law. A<br />

contingent fee agreement shall be in a writing<br />

signed <strong>by</strong> the client and shall state the method<br />

<strong>by</strong> which the fee is to be determined, including<br />

the percentage or percentages that shall accrue<br />

Commission’s Proposed Rule *<br />

Rule 1.5 Fees for Legal Services<br />

(10) the time and labor required;<br />

(11) whether the client gave informed consent to<br />

the fee or in-house expense.<br />

(b) The scope <strong>of</strong> the representation and the basis or<br />

rate <strong>of</strong> the fee and expenses for which the client<br />

will be responsible shall be communicated to the<br />

client, preferably in writing, before or within a<br />

reasonable time after commencing the<br />

representation, except when the lawyer will<br />

charge a regularly represented client on the<br />

same basis or rate. Any changes in the basis or<br />

rate <strong>of</strong> the fee or expenses shall also be<br />

communicated to the client.<br />

(c) A fee may be contingent on the outcome <strong>of</strong> the<br />

matter for which the service is rendered, except<br />

in a matter in which a contingent fee is<br />

prohibited <strong>by</strong> paragraph (d) or other law. A<br />

contingent fee agreement shall be in a writing<br />

signed <strong>by</strong> the client and shall state the method<br />

<strong>by</strong> which the fee is to be determined, including<br />

the percentage or percentages that shall accrue<br />

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

Subparagraph (10) consists <strong>of</strong> language that has been moved<br />

from Model Rule 1.5(a)(1) and given its own subparagraph.<br />

Subparagraph (11) has no counterpart in the Model Rule. It is<br />

carried forward from current rule 4-200(B)(11), which provides:<br />

“(11) The informed consent <strong>of</strong> the client to the fee.”<br />

The Commission recommends deletion <strong>of</strong> Model Rule 1.5(b),<br />

which prescribes what a lawyer is obligated to communicate to a<br />

client about the scope <strong>of</strong> representation and basis or rate <strong>of</strong> the<br />

fee. Those requirements are already addressed in Business &<br />

Pr<strong>of</strong>essions Code § 6148. Under that statute, the client already<br />

has a remedy for a lawyer’s violation <strong>of</strong> the statute: having the<br />

contract voided. Section 6148(c). The Commission does not<br />

recommend that a violation <strong>of</strong> section 6147 subject a lawyer to<br />

discipline under this Rule in addition to the remedy provided in the<br />

statute.<br />

The Commission recommends deletion <strong>of</strong> Model Rule 1.5(c),<br />

which prescribes a lawyer’s duties when the lawyer is retained on<br />

a contingent fee basis. Those requirements are already<br />

addressed in Business & Pr<strong>of</strong>essions Code § 6147. Under that<br />

statute, the client already has a remedy for a lawyer’s violation <strong>of</strong><br />

the statute: having the contract voided. Section 6147(b). The<br />

Commission does not recommend that a violation <strong>of</strong> section 6147<br />

subject a lawyer to discipline under this Rule in addition to the<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 />

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