Sorted by Commenter - Ethics - State of California
Sorted by Commenter - Ethics - State of California Sorted by Commenter - Ethics - State of California
Division of Fee ABA Model Rule Rule 1.5 Fees Comment [7] A division of fee is a single billing to a client covering the fee of two or more lawyers who are not in the same firm. A division of fee facilitates association of more than one lawyer in a matter in which neither alone could serve the client as well, and most often is used when the fee is contingent and the division is between a referring lawyer and a trial specialist. Paragraph (e) permits the lawyers to divide a fee either on the basis of the proportion of services they render or if each lawyer assumes responsibility for the representation as a whole. In addition, the client must agree to the arrangement, including the share that each lawyer is to receive, and the agreement must be confirmed in writing. Contingent fee agreements must be in a writing signed by the client and must otherwise comply with paragraph (c) of this Rule. Joint responsibility for the Commission’s Proposed Rule Rule 1.5 Fees for Legal Services Comment property on receipt and must not be deposited into a client trust account. See Rule 1.15(f). For definitions of the terms “writing” and “signed,” see Rule 1.0.1(n). [11] When a lawyer-client relationship terminates, the lawyer must refund the unearned portion of a fee. See Rule 1.16(e)(2). In the event of a dispute relating to a fee under paragraph (e)(1) or (e)(2) of this Rule, the lawyer must comply with Rule 1.15(d)(2). Division of Fee [7] A division of fee is a single billing to a client covering the fee of two or more lawyers who are not in the same firm. A division of fee facilitates association of more than one lawyer in a matter in which neither alone could serve the client as well, and most often is used when the fee is contingent and the division is between a referring lawyer and a trial specialist. Paragraph (e) permits the lawyers to divide a fee either on the basis of the proportion of services they render or if each lawyer assumes responsibility for the representation as a whole. In addition, the client must agree to the arrangement, including the share that each lawyer is to receive, and the agreement must be confirmed in writing. Contingent fee agreements must be in a writing signed by the client and must otherwise comply with paragraph (c) of this Rule. Joint responsibility for the Explanation of Changes to the ABA Model Rule “1.0(n)” pending the Commission’s final recommendation on whether to adopt that rule. Comment [11] has no counterpart in the Model Rule. Comment [11] points lawyers to Rule 1.15(d)(2) for their obligations when disputes arise concerning fees advanced under paragraph (e)(1) or (e)(2). Model Rule 1.5, cmts. [7] and [8] have been deleted because they relate to fee divisions, which are covered separately under proposed Rule 1.5.1. See also Explanation of Changes for paragraph (c). 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.} 228
ABA Model Rule Rule 1.5 Fees Comment representation entails financial and ethical responsibility for the representation as if the lawyers were associated in a partnership. A lawyer should only refer a matter to a lawyer whom the referring lawyer reasonably believes is competent to handle the matter. See Rule 1.1. [8] Paragraph (e) does not prohibit or regulate division of fees to be received in the future for work done when lawyers were previously associated in a law firm. Disputes over Fees [9] If a procedure has been established for resolution of fee disputes, such as an arbitration or mediation procedure established by the bar, the lawyer must comply with the procedure when it is mandatory, and, even when it is voluntary, the lawyer should conscientiously consider submitting to it. Law may prescribe a procedure for determining a lawyer's fee, for example, in representation of an executor or administrator, a class or a person entitled to a reasonable fee as part of the measure of damages. The lawyer entitled to such a fee and a lawyer representing another party concerned with the fee should comply with the prescribed procedure. Commission’s Proposed Rule Rule 1.5 Fees for Legal Services Comment representation entails financial and ethical responsibility for the representation as if the lawyers were associated in a partnership. A lawyer should only refer a matter to a lawyer whom the referring lawyer reasonably believes is competent to handle the matter. See Rule 1.1. [8] Paragraph (e) does not prohibit or regulate division of fees to be received in the future for work done when lawyers were previously associated in a law firm Disputes over Fees [9] If a procedure has been established for resolution of fee disputes, such as an arbitration or mediation procedure established by the bar, the lawyer must comply with the procedure when it is mandatory, and, even when it is voluntary, the lawyer should conscientiously consider submitting to it. Law may prescribe a procedure for determining a lawyer's fee, for example, in representation of an executor or administrator, a class or a person entitled to a reasonable fee as part of the measure of damages. The lawyer entitled to such a fee and a lawyer representing another party concerned with the fee should comply with the prescribed procedure. Explanation of Changes to the ABA Model Rule See Explanation of Changes for Model Rule 1.5, cmt. [7]. The Commission has recommended that Comment [9] be deleted because arbitration of fee disputes in California is largely governed under the Mandatory Fee Arbitration Act, Bus. & Prof. Code § 6200 et seq. 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.} 229
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ABA Model Rule<br />
Rule 1.5 Fees<br />
Comment<br />
representation entails financial and ethical<br />
responsibility for the representation as if the lawyers<br />
were associated in a partnership. A lawyer should<br />
only refer a matter to a lawyer whom the referring<br />
lawyer reasonably believes is competent to handle<br />
the matter. See Rule 1.1.<br />
[8] Paragraph (e) does not prohibit or regulate<br />
division <strong>of</strong> fees to be received in the future for work<br />
done when lawyers were previously associated in a<br />
law firm.<br />
Disputes over Fees<br />
[9] If a procedure has been established for resolution<br />
<strong>of</strong> fee disputes, such as an arbitration or mediation<br />
procedure established <strong>by</strong> the bar, the lawyer must<br />
comply with the procedure when it is mandatory,<br />
and, even when it is voluntary, the lawyer should<br />
conscientiously consider submitting to it. Law may<br />
prescribe a procedure for determining a lawyer's fee,<br />
for example, in representation <strong>of</strong> an executor or<br />
administrator, a class or a person entitled to a<br />
reasonable fee as part <strong>of</strong> the measure <strong>of</strong> damages.<br />
The lawyer entitled to such a fee and a lawyer<br />
representing another party concerned with the fee<br />
should comply with the prescribed procedure.<br />
Commission’s Proposed Rule<br />
Rule 1.5 Fees for Legal Services<br />
Comment<br />
representation entails financial and ethical<br />
responsibility for the representation as if the lawyers<br />
were associated in a partnership. A lawyer should<br />
only refer a matter to a lawyer whom the referring<br />
lawyer reasonably believes is competent to handle<br />
the matter. See Rule 1.1.<br />
[8] Paragraph (e) does not prohibit or regulate<br />
division <strong>of</strong> fees to be received in the future for work<br />
done when lawyers were previously associated in a<br />
law firm<br />
Disputes over Fees<br />
[9] If a procedure has been established for<br />
resolution <strong>of</strong> fee disputes, such as an arbitration or<br />
mediation procedure established <strong>by</strong> the bar, the<br />
lawyer must comply with the procedure when it is<br />
mandatory, and, even when it is voluntary, the<br />
lawyer should conscientiously consider submitting to<br />
it. Law may prescribe a procedure for determining a<br />
lawyer's fee, for example, in representation <strong>of</strong> an<br />
executor or administrator, a class or a person<br />
entitled to a reasonable fee as part <strong>of</strong> the measure <strong>of</strong><br />
damages. The lawyer entitled to such a fee and a<br />
lawyer representing another party concerned with<br />
the fee should comply with the prescribed procedure.<br />
Explanation <strong>of</strong> Changes to the ABA Model Rule<br />
See Explanation <strong>of</strong> Changes for Model Rule 1.5, cmt. [7].<br />
The Commission has recommended that Comment [9] be deleted<br />
because arbitration <strong>of</strong> fee disputes in <strong>California</strong> is largely<br />
governed under the Mandatory Fee Arbitration Act, Bus. & Pr<strong>of</strong>.<br />
Code § 6200 et seq.<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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