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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 />

acknowledge hybrid retainers and provide that<br />

the rule is not intended to prohibit contracting<br />

for, charging, or collecting a flat fee.<br />

1.5(a) fully protects against the risk <strong>of</strong> an<br />

unconscionable “non-refundable” fee without<br />

the unanticipated consequences and<br />

ambiguities created <strong>by</strong> 1.5(f).<br />

Flat fee arrangements represent a legitimate,<br />

bargained-for exchange, between lawyer and<br />

client.<br />

Prohibited non-refundable fees, as in 1.5(f),<br />

does not address the true concern, which is<br />

ensuring that unearned fees are returned to a<br />

client and that any non-refundable portion <strong>of</strong> a<br />

fee is not, under all the circumstances,<br />

unconscionable.<br />

ABA Model Rules do not prohibit flat fees or<br />

non-refundable fees.<br />

28 Martinez, Martin D Attorneys have always engaged in the use <strong>of</strong><br />

non-refundable retainers.<br />

Ambiguity about when a fee is “earned.”<br />

Rule ties the hands <strong>of</strong> the criminal defense<br />

bar <strong>by</strong> requiring the lawyer to place funds in<br />

trust that would otherwise be available to the<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 />

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 />

272

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