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Sorted by Commenter - Ethics - State of California

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ABA Model Rule<br />

Rule 1.5 Fees<br />

Comment<br />

amount <strong>of</strong> the fee and whether and to what extent<br />

the client will be responsible for any costs, expenses<br />

or disbursements in the course <strong>of</strong> the representation.<br />

A written statement concerning the terms <strong>of</strong> the<br />

engagement reduces the possibility <strong>of</strong><br />

misunderstanding.<br />

[3] Contingent fees, like any other fees, are subject<br />

to the reasonableness standard <strong>of</strong> paragraph (a) <strong>of</strong><br />

this Rule. In determining whether a particular<br />

contingent fee is reasonable, or whether it is<br />

reasonable to charge any form <strong>of</strong> contingent fee, a<br />

lawyer must consider the factors that are relevant<br />

under the circumstances. Applicable law may<br />

impose limitations on contingent fees, such as a<br />

ceiling on the percentage allowable, or may require a<br />

lawyer to <strong>of</strong>fer clients an alternative basis for the fee.<br />

Applicable law also may apply to situations other<br />

than a contingent fee, for example, government<br />

regulations regarding fees in certain tax matters.<br />

Commission’s Proposed Rule<br />

Rule 1.5 Fees for Legal Services<br />

Comment<br />

amount <strong>of</strong> the fee and whether and to what extent<br />

the client will be responsible for any costs, expenses<br />

or disbursements in the course <strong>of</strong> the representation.<br />

A written statement concerning the fee terms <strong>of</strong> the<br />

engagement reduces the possibility <strong>of</strong><br />

misunderstanding.<br />

[3] Contingent fees, like any other fees, are subject<br />

to the reasonableness standard <strong>of</strong> paragraph (a) <strong>of</strong><br />

this Rule. In determining whether a particular<br />

contingent fee is reasonable, or whether it is<br />

reasonable to charge any form <strong>of</strong> contingent fee, a<br />

lawyer must consider the factors that are relevant<br />

under the circumstances. Applicable law may<br />

impose limitations on contingent fees, such as a<br />

ceiling on the percentage allowable, or may require a<br />

lawyer to <strong>of</strong>fer clients an alternative basis for the fee.<br />

Applicable law also may apply to situations other<br />

than a contingent fee, for example, government<br />

regulations regarding fees in certain tax matters.<br />

[2] In many circumstances, Business and<br />

Pr<strong>of</strong>essions Code, sections 6147 and 6148 govern<br />

what a lawyer is required to include in a fee<br />

agreement, and provide consequences for a lawyer's<br />

failure to comply with the requirements. (See, e.g., In<br />

re Harney (1995) 3 Cal. <strong>State</strong> Bar Ct. Rptr. 266.)<br />

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

The Commission recommends that Model Rule 1.5, cmt. [3] be<br />

rejected for the reasons given in the Explanation <strong>of</strong> Changes for<br />

Model Rule 1.5(c).<br />

Comment [2] has no counterpart in the Model Rule. It contains<br />

cross-references to Bus. & Pr<strong>of</strong>. Code §§ 6147 and 6148, which<br />

govern contingent and other fee agreements in <strong>California</strong>. See<br />

also Explanation <strong>of</strong> Changes Model Rule 1.5(b) and (c).<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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