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[textbook]Traversing the Ethical Minefield Problems, Law, and Professional Responsibility by Susan R. Martyn (z-lib.org)(1) (1)

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but nevertheless face clients who are unhappy with the lawyer or the result in their case, or

are otherwise unwilling to pay for the representation. Second, most lawyers do not

intentionally overcharge, but might fail to explain the fee or the progress in the matter so

that clients are unpleasantly taken by surprise when they later receive the bill. Third, some

lawyers charge clients unreasonable fees, and a few do so fraudulently.

The loyalty-based conflict of interest rules discussed in the last three chapters apply only

after a lawyer has agreed to represent a client. Model Rule 1.5 nevertheless imposes several

fiduciary-like requirements in the context of pre-contractual fee negotiations, such as

obligations to communicate the basis of the fee, limitations on the propriety of certain fee

arrangements, and the general requirement that fees are subject to an objective standard of

reasonableness.

Fee Agreements

Model Rule 1.5 requires written contingent fees agreements, and an increasing number of

jurisdictions require them for all fee agreements. 2 Written documents help avoid fee

disputes by clarifying the respective rights of both client and lawyer. Thus, the best practice

is to provide clients with a written document that communicates both “the scope of the

representation and the basis or rate of the fee and expenses for which the client will be

responsible.” 3 The effort a lawyer invests in providing such a writing will more than be

repaid in client understanding and goodwill, and if necessary, in forming the basis for the

resolution of a fee dispute.

A written fee agreement also gives clients and lawyers the opportunity to consider

alternative fee structures. This chapter focuses primarily on the common fee arrangements:

hourly, contingent, and fixed fees. Lawyers and clients are becoming increasingly creative in

modifying these options. Some adopt blended hourly fees, where the client pays a set rate

regardless of which lawyer performs the work. Others prefer retainer plus fees, which

supplement monthly retainers with an hourly fee when the lawyer works more than an

agreed-upon number of hours per month. Task-based fees, which break or unbundle a

representation into different legal tasks, such as complaint drafting, negotiation, or

interrogatories also are becoming more common, along with work-unit fees, which allocate

fixed fees by a client-determined unit such as number of lots sold.

Lawyers who amend fee contracts after the representation has commenced are subject to

conflict of interest rules, including the law of undue influence, all designed to enforce their

fiduciary obligations to clients. This means that changes to initial agreements are presumed

the product of undue influence by the lawyer and voidable by the client. 4

Fee Collection

Of course, lawyers not only must provide clients with clear fee agreements, but also must

abide by their provisions in charging and collecting their fees, and provide clarifications

where necessary. 5 366

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