Sorted by Commenter - Ethics - State of California

No. Commenter Position 1
12 Arguedas, Cassman &
Headley, LLP
Comment
on Behalf
of Group?
Rule 1.5 Fees for Legal Services.
[Sorted by Commenter]
Rule
Paragraph
without cause.
D We are unaware of any pattern of attorneys
abusing non-refundable fees to bilk their
clients. Such misconduct is barred by
already-existing rules, such as current Rule 4-
200, which prohibits attorneys from charging
or collecting unconscionable fees.
Comment RRC Response
Exception (e)(1) to the Proposed Rule
purports to permit a “true retainer” fee to
“ensure the lawyer’s availability to the client.”
But the Proposed Rule would prohibit an
agreement under which the retainer would
constitute a minimum fee that ensures the
attorney’s availability yet also serves as a
credit against which the attorney charges her
time until the fee is exhausted. Such
arrangements are common and benefit both
the client and the attorney.
Proposed Rule 1.5(e)(2) purports to permit
“flat fee” agreements under which the fee
becomes the property of the attorney upon
receipt, but the Rule will in fact make such
arrangements impossible. Subsection (e)(2)
requires a written agreement that states,
among other things, “that the client may be
entitled to a refund of a portion of the fee if
the agreed-upon legal services have not been
To address the commenter’s concerns but still
provide for enhanced client protection, the
Commission revised the approach to advance fee
payments in paragraph (e) of the Rule to provide as
follows:
(2) a lawyer may charge a flat fee for specified
legal services, which constitutes complete
payment for those services and may be paid
in whole or in part in advance of the lawyer
providing the services. If agreed to in
advance in a writing signed by the client, a
flat fee is the lawyer’s property on receipt.
The written fee agreement shall, in a
manner that can easily be understood by
the client, include the following: (i) the scope
of the services to be provided; (ii) the total
amount of the fee and the terms of
payment; (iii) that the fee is the lawyer’s
property immediately on receipt; (iv) that the
fee agreement does not alter the client’s
right to terminate the client-lawyer
relationship; and (v) that the client may be
entitled to a refund of a portion of the fee if
the agreed-upon legal services have not
been completed.
RRC - 4-200 1-5 - Public Comment Chart - By Commenter - XDFT1.1 (5-26-10) doc.doc Page 20 of 28 Printed: 5/26/2010
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