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 />
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