Sorted by Commenter - Ethics - State of California
Sorted by Commenter - Ethics - State of California Sorted by Commenter - Ethics - State of California
No. Commenter Position 1 Comment on Behalf of Group? Rule 1.5 Fees for Legal Services. [Sorted by Commenter] Rule Paragraph Comment RRC Response litigation over who owns the fee, especially when combined with the mandate that counsel state that the client may be entitled to a refund. Ambiguities in fee agreements are construed against the lawyer, and this draft rule mandates an ambiguity. The proposed language in sub-part (e)(2) is unnecessary in light of the prohibition on charging unconscionable fees, a traditional and well established standard which sufficiently safeguards clients from unscrupulous lawyers who overcharge clients, and which provides a uniform standard regardless of the type of retainer agreement involved. The language of (e)(2) may discourage the attorney from providing details in the fee agreement regarding the extent of the work for which a flat fee is being paid because of the potential it creates for a client to request a refund because “the agreed-upon legal services have not been completed.” The proposed language will foment greater discord over fee agreements, which is not in the interests of either clients or the legal profession. This proposal likely will lead to litigation in the RRC - 4-200 1-5 - Public Comment Chart - By Commenter - XDFT1.1 (5-26-10) doc.doc Page 24 of 28 Printed: 5/26/2010 58
No. Commenter Position 1 Comment on Behalf of Group? Rule 1.5 Fees for Legal Services. [Sorted by Commenter] Rule Paragraph Comment RRC Response context of an injunction, jeopardy assessment or forfeiture. It may lead to substantial problems in bankruptcy, tax, collections, criminal, family law, and other matters in which both flat fees arrangements, and injunctions, assessments and/or forfeitures, are commonplace. The reason for this is that persons or entities with a claim against a client will seek to seize and forfeit a client’s potential interest in obtaining a refund based on the client’s possible right to “be entitled to a refund of a portion of the fee.” How would a creditor of the client know whether the agreed upon services were or were not provided? This proposal has no counterpart in the ABA Model Rules. Thus, it does not advance the intended goal of national uniformity that is among the purposes for revising California’s existing rules of professional conduct. Finally, PREC is aware that some practitioners have expressed concern that this provision was presented to the State Bar Board of Governors without the prior public comment that is required by State Bar Rule 1.10. If there has been a failure to comply with any procedural rule, PREC believes that the Rules Revision commission should consider recommending necessary corrective The proposal was issued for a 90-day public comment period posted on the State Bar website and was also the subject of a public hearing in Sacramento that was noticed by several methods, including: a posting at the State Bar website; public notices in the Daily Journal, the Daily Recorder, and the Sacramento Bee; e-mail notifications to approximately 14,000 interested persons; and a press release to the media. RRC - 4-200 1-5 - Public Comment Chart - By Commenter - XDFT1.1 (5-26-10) doc.doc Page 25 of 28 Printed: 5/26/2010 59
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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 />
Comment RRC Response<br />
litigation over who owns the fee, especially<br />
when combined with the mandate that<br />
counsel state that the client may be entitled to<br />
a refund. Ambiguities in fee agreements are<br />
construed against the lawyer, and this draft<br />
rule mandates an ambiguity.<br />
The proposed language in sub-part (e)(2) is<br />
unnecessary in light <strong>of</strong> the prohibition on<br />
charging unconscionable fees, a traditional<br />
and well established standard which<br />
sufficiently safeguards clients from<br />
unscrupulous lawyers who overcharge clients,<br />
and which provides a uniform standard<br />
regardless <strong>of</strong> the type <strong>of</strong> retainer agreement<br />
involved.<br />
The language <strong>of</strong> (e)(2) may discourage the<br />
attorney from providing details in the fee<br />
agreement regarding the extent <strong>of</strong> the work<br />
for which a flat fee is being paid because <strong>of</strong><br />
the potential it creates for a client to request a<br />
refund because “the agreed-upon legal<br />
services have not been completed.” The<br />
proposed language will foment greater<br />
discord over fee agreements, which is not in<br />
the interests <strong>of</strong> either clients or the legal<br />
pr<strong>of</strong>ession.<br />
This proposal likely will lead to litigation in the<br />
RRC - 4-200 1-5 - Public Comment Chart - By <strong>Commenter</strong> - XDFT1.1 (5-26-10) doc.doc Page 24 <strong>of</strong> 28 Printed: 5/26/2010<br />
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