WHAT CAN I EXPECT REGARDING ATTORNEY BILLING?
*** This information is provided subject to Litteral LLP’s Terms & Notices and is presented solely for informational purposes. Because this information is general in nature, it should not be relied upon or treated as legal advice or a substitute for legal advice. This information is presented in accordance with Litteral LLP’s aim of enhancing access to the law. Litteral LLP expresses no opinion as to the merits of a particular case or a particular set of facts.***
A potential client may be unfamiliar with the different types of fee arrangements attorneys may use, or what to expect regarding billing. Clients have the right to have an attorney explain the fee arrangement and should carefully review any fee agreement. Though attorneys may present a pre-printed fee agreement, clients are free to refuse to enter into any fee arrangement and can ask a prospective attorney to make changes to better suit a given client’s needs.
A fee agreement should include a list of services the attorney will perform and explain the fee arrangement. Common types of fee arrangements used by attorneys may include fixed fee, hourly fee, retainer fee, statutory fee, and contingency fee. In addition to attorney fees, a fee agreement should also describe how any additional costs and expenses will be handled, including whether a client will be billed directly or billed at a later point to reimburse the attorney. By law, fee agreements must be in writing when the attorney anticipates fees and costs for a client’s case will total $1,000 or more. Similarly, any contingency fee agreement between a client and attorney must be in writing.
Additionally, the California’s Rules of Professional Conduct also regulates fees for legal services. Specifically, Rule 1.5(a) provides that a “lawyer shall not make an agreement for, charge, or collect an unconscionable or illegal fee.” What is “unconscionable” is determined by a review “of all the facts and circumstances existing at the time the agreement is entered into except where the parties contemplate that the fee will be affected by later events.”
Rule 1.5(b) outlines various factors that assist in determining whether a fee is “unconscionable,” including without limitation: (1) whether the lawyer engaged in fraud or reaching in negotiating or setting the fee; (2) whether the lawyer has failed to disclose material facts; (3) the amount of the fee in proportion to the value of the services performed; (4) the relative sophistication of the lawyer and the client; (5) the novelty and difficulty of the question involved, and the skill requisite to perform the legal service properly; (6) the likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer; (7) the amount involved and the results obtained; (8) the time limitations imposed by the client or by the circumstances; (9) the nature and length of the professional relationship with the client; (10) the experience, reputation, and ability of the lawyer or lawyers performing the services; (11) whether the fee is fixed or contingent; (12) the time and labor required; and (13) whether the client gave informed consent to the fee.”
A client’s right to be charged a reasonable fee is one of many client rights underlying an attorney’s duties under the Rules of Professional Conduct. In the event of a fee dispute, the State Bar of California has a low-cost alternative to litigation called the Mandatory Fee Arbitration program. Any individual considering legal recourse should consult a qualified attorney who can evaluate the applicable laws, relevant legal developments, and specific facts of a given case.
*** This information is provided subject to the disclaimer above and Litteral LLP’s Terms & Notices.***