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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 />

fees upon withdrawal.<br />

If fixed fees are required to be deposited into<br />

a trust account until portions <strong>of</strong> services are<br />

completed, fees will increase because <strong>of</strong> the<br />

time value <strong>of</strong> money (money today is worth<br />

more than money potentially available<br />

tomorrow).<br />

Non-refundable fixed fees provide client with<br />

assurance that they will not be charged more<br />

than a particular amount.<br />

Proposed rule forces a lawyer after a dispute<br />

arises to place those funds out <strong>of</strong> reach in a<br />

trust account, limiting attorney’s ability to pay<br />

operating expenses.<br />

Proposal creates increased accounting costs<br />

and overhead.<br />

Fees in a trust account will be vulnerable to<br />

attachment <strong>by</strong> other potential creditors<br />

increasing the risk <strong>of</strong> nonpayment, and<br />

increasing fees to account for that risk.<br />

Non-refundable fee agreements might be the<br />

result <strong>of</strong> rational negotiation between attorney<br />

and client and/or in the client’s best interest.<br />

Under federal law, attorneys’ fees may be<br />

subject to restraint or forfeiture under a<br />

number <strong>of</strong> statutes, including 21 USC § 853,<br />

18 USC § 981-82, or 18 USC § 1963 (RICO).<br />

Under these statutes, a lawyer must show an<br />

287

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