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Sorted by Commenter - Ethics - State of California

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Division <strong>of</strong> Fee<br />

ABA Model Rule<br />

Rule 1.5 Fees<br />

Comment<br />

[7] A division <strong>of</strong> fee is a single billing to a client<br />

covering the fee <strong>of</strong> two or more lawyers who are not<br />

in the same firm. A division <strong>of</strong> fee facilitates<br />

association <strong>of</strong> more than one lawyer in a matter in<br />

which neither alone could serve the client as well,<br />

and most <strong>of</strong>ten is used when the fee is contingent<br />

and the division is between a referring lawyer and a<br />

trial specialist. Paragraph (e) permits the lawyers to<br />

divide a fee either on the basis <strong>of</strong> the proportion <strong>of</strong><br />

services they render or if each lawyer assumes<br />

responsibility for the representation as a whole. In<br />

addition, the client must agree to the arrangement,<br />

including the share that each lawyer is to receive,<br />

and the agreement must be confirmed in writing.<br />

Contingent fee agreements must be in a writing<br />

signed <strong>by</strong> the client and must otherwise comply with<br />

paragraph (c) <strong>of</strong> this Rule. Joint responsibility for the<br />

Commission’s Proposed Rule<br />

Rule 1.5 Fees for Legal Services<br />

Comment<br />

property on receipt and must not be deposited into a<br />

client trust account. See Rule 1.15(f). For definitions<br />

<strong>of</strong> the terms “writing” and “signed,” see Rule 1.0.1(n).<br />

[11] When a lawyer-client relationship terminates,<br />

the lawyer must refund the unearned portion <strong>of</strong> a<br />

fee. See Rule 1.16(e)(2). In the event <strong>of</strong> a dispute<br />

relating to a fee under paragraph (e)(1) or (e)(2) <strong>of</strong><br />

this Rule, the lawyer must comply with Rule<br />

1.15(d)(2).<br />

Division <strong>of</strong> Fee<br />

[7] A division <strong>of</strong> fee is a single billing to a client<br />

covering the fee <strong>of</strong> two or more lawyers who are not<br />

in the same firm. A division <strong>of</strong> fee facilitates<br />

association <strong>of</strong> more than one lawyer in a matter in<br />

which neither alone could serve the client as well,<br />

and most <strong>of</strong>ten is used when the fee is contingent<br />

and the division is between a referring lawyer and a<br />

trial specialist. Paragraph (e) permits the lawyers to<br />

divide a fee either on the basis <strong>of</strong> the proportion <strong>of</strong><br />

services they render or if each lawyer assumes<br />

responsibility for the representation as a whole. In<br />

addition, the client must agree to the arrangement,<br />

including the share that each lawyer is to receive,<br />

and the agreement must be confirmed in writing.<br />

Contingent fee agreements must be in a writing<br />

signed <strong>by</strong> the client and must otherwise comply with<br />

paragraph (c) <strong>of</strong> this Rule. Joint responsibility for the<br />

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

“1.0(n)” pending the Commission’s final recommendation on<br />

whether to adopt that rule.<br />

Comment [11] has no counterpart in the Model Rule. Comment<br />

[11] points lawyers to Rule 1.15(d)(2) for their obligations when<br />

disputes arise concerning fees advanced under paragraph (e)(1)<br />

or (e)(2).<br />

Model Rule 1.5, cmts. [7] and [8] have been deleted because they<br />

relate to fee divisions, which are covered separately under<br />

proposed Rule 1.5.1. See also Explanation <strong>of</strong> Changes for<br />

paragraph (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 />

228

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