While the rules allow for fixed fee agreements, I want you to think about a few things the next time you enter into lump sum fee agreements with clients. The mandate fees earned are paid monthly until the case is closed. Sometimes the lawyer can be paid based on the milestones he has reached, for example, 25% after pre-trial, 60% after the hearing and 100% when the case is decided and closed. Those who share this view are of the view that once a lawyer has been informed of the provisions of paragraph 1.16(d), he or she should have the opportunity to prove the value of his or her services before the date of termination and to reimburse an undeserved portion of the fees. If, on the other hand, the lawyer simply insists that « non-refundable » means exactly what he is saying, then at that point a violation of the rule would have occurred. In addition, the wording of non-refundable fees is offensive because it can discourage a client from exercising their right to dismiss their lawyer, thereby forcing the client to sue with a lawyer the client no longer trusts. In Fracasse v. Brent, 494 P.2d 9 (Cal. 1972), the court recognized the valuable right of a client to dismiss a lawyer in whom the client no longer trusts and the requirement that the dismissed lawyer collect his fees on a quantum meruit basis. The court`s reasoning was that the risk of paying fees to the dismissed lawyer and fees to the new lawyer would seriously affect the client`s right to dismissal. A similar logic would apply here in that the client who is faced with what he considers to be a non-refundable fee might be reluctant to fire the lawyer and be forced to sue with a lawyer whom the client does not trust. The Cooperman Court found that any attempt by a lawyer to interfere with the lawyer`s right to dismiss violated the Code of Professional Liability to which all lawyers are bound. (Supra, at p.

858). In these conversations, it is important that the customer is not misled. Any indication by counsel that the fees are non-refundable is inaccurate and inherently misleading and would violate Rule 1.4(b) Disclosure; Rule 1.5 (b) Fees; and rule 8.4 (c) Misrepresentation. Once a client has signed a representation agreement with a lawyer setting out the advance fees, the client is required to pay the fees in a special account. Whenever the lawyer works on the case, he tracks the hours spent and bills the client at the end of the month. The agreement also determines what your responsibilities are and what happens if you breach the terms of the contract. There are ethical rules that do not allow lawyers to end their relationship with you if they do not have a strong case. The idea of a retention payment is great because it reduces the risk of becoming stiff or having to chase after money. However, sometimes the transaction is completed before all the holding funds are earned.

perhaps by regulation; maybe the client has changed their mind; or maybe the lawyer will be fired. California Rules of Professional Conduct, Rule 3-700(D)(2) states that attorneys cannot keep money they did not earn at the end of their employment. One might be tempted to say that the withholding was « non-refundable » and still keeps the money. However, the court will consider the intent and functions of the funds, not how they are labeled. First of all, your fixed fee contract is not a « real » mandate contract. The fixed fee is « refundable », although you can write in your advance that this is not the case. I explain this to many customers and many postpone this problem. Fixed fees are not earned at the reception. To explain, if actual advance payments are the only ones withheld when fees are earned upon receipt, your fixed fee agreement falls under the « immediate refund » portion of rule 3-700(D)(2), and you must reimburse any fees that were not earned. (There`s a lot more to discuss here regarding upfront fees and what to do with controversial funds, etc., but that will be for another topic.) If, during the course of the legal proceedings, an unexpected event occurs that prevents the client from paying more money, the lawyer may receive compensation for the work done by receiving the anticipated fee. Mandate fees earned refer to the amount transferred from the special account to the lawyer`s operating account after the completion of an agreed task.

The amount that the lawyer receives per hour is usually agreed before the start of the work and indicated in the fee agreement. DISCUSSION: The rule in Alabama is that an attorney has the right to be adequately compensated only for services rendered. Halle v. Gunter, 157 Ala. 375, 47 Sun.2d 144 (1908). In addition, Rule 1.16 of the Alabama Rules of Professional Conduct provides that an attorney must reimburse any upfront payment of unpaid fees upon termination of the representation. Therefore, in Formal Notice RO-92-17, the Disciplinary Commission held that « no advance should be non-refundable to the extent that it exceeds reasonable costs. » The Commission has used the term « mandate » in the general sense to cover not only traditional mandate contracts, but also all agreements in which fees are paid prior to the provision of services. Many of my clients charge by the hour and charge accordingly, but I have seen an upsurge in lump sum fee agreements. ANSWER: A lawyer may not designate fees as non-refundable or use any other language in a fee agreement that states that a commission paid prior to the provision of services is not subject to reimbursement or adjustment.

Attorneys` fees are a payment you make to your lawyer or other professional service providers to secure their work for a period of time. During this time, the lawyer must be available to answer any questions you may have about your claim and legal questions. You can get a refund if you decide to end the relationship with your lawyer, but if he has already done some work, you will only receive a partial refund. .