Sorted by Commenter - Ethics - State of California
Sorted by Commenter - Ethics - State of California
Sorted by Commenter - Ethics - State of California
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No. <strong>Commenter</strong> Position 1<br />
Comment<br />
on Behalf<br />
<strong>of</strong> Group?<br />
Rule 1.5 Fees for Legal Services.<br />
[<strong>Sorted</strong> <strong>by</strong> <strong>Commenter</strong>]<br />
Rule<br />
Paragraph<br />
RRC - 4-200 1-5 - Public Comment Chart - By <strong>Commenter</strong> - DFT3.1 (10-21-09)RD-KEM-AT-RD.doc<br />
Comment RRC Response<br />
lawyer.<br />
Rule would prohibit informed agreements<br />
even when in both lawyer and client believe it<br />
to be in their best interest.<br />
Since the fee will be retained in a trust, it will<br />
be subject to claims from collateral sources.<br />
Net effect <strong>of</strong> increasing costs <strong>of</strong> services for<br />
clients across the board.<br />
Some attorneys will not be able to survive in<br />
the economic environment created <strong>by</strong> the<br />
proposal.<br />
7 Chodos, Rafael D 1.5(f) if interpreted literally would mean that<br />
every fee except for “true retainer fees” would<br />
have to be refundable, even fees charged for<br />
work done and completed.<br />
The real issue the proposed rule is trying to<br />
address is not the nature <strong>of</strong> the fee<br />
agreement, but the obligation <strong>of</strong> the attorney<br />
to refund any unearned portion <strong>of</strong> the fee,<br />
which is already addressed in 3-700(d).<br />
legal services, which constitutes complete<br />
payment for those services and may be paid<br />
in whole or in part in advance <strong>of</strong> the lawyer<br />
providing the services. If agreed to in<br />
advance in a writing signed <strong>by</strong> the client, a<br />
flat fee is the lawyer’s property on receipt.<br />
The written fee agreement shall, in a<br />
manner that can easily be understood <strong>by</strong><br />
the client, include the following: (i) the scope<br />
<strong>of</strong> the services to be provided; (ii) the total<br />
amount <strong>of</strong> the fee and the terms <strong>of</strong><br />
payment; (iii) that the fee is the lawyer’s<br />
property immediately on receipt; (iv) that the<br />
fee agreement does not alter the client’s<br />
right to terminate the client-lawyer<br />
relationship; and (v) that the client may be<br />
entitled to a refund <strong>of</strong> a portion <strong>of</strong> the fee if<br />
the agreed-upon legal services have not<br />
been completed.<br />
To address the commenter’s concerns but still<br />
provide for enhanced client protection, the<br />
Commission revised the approach to advance fee<br />
payments in paragraph (e) <strong>of</strong> the Rule to provide as<br />
follows:<br />
(2) a lawyer may charge a flat fee for specified<br />
legal services, which constitutes complete<br />
payment for those services and may be paid<br />
in whole or in part in advance <strong>of</strong> the lawyer<br />
providing the services. If agreed to in<br />
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