I know this is a long post/question, but it is a topic many may find interesting as it shows that there are no cut and dry rules to agreements, in this case an agreement between an attorney and their client. The questions are 1.) if an attorney presented you, now the client, with this agreement, would it meet your approval and, 2.) if not, what would you change?
The attorney/client fee agreement:
"This Agreement (hereinafter referred to as the "Agreement") is entered into
between xxxxxxxxx (hereinafter referred to as "Attorney") and xxxxxxxxxxx
xxxxx (hereinafter referred to as "Client").
1. CONDITIONS
This Agreement will not take effect, and Attorney will have no obligation to
provide further legal services, until a signed copy of this Agreement is received by
Attorney.
2. SCOPE OF SERVICES
In 2008, Client's home located in California
suffered from a fire causing among other things, damage to his personal property. Also in 2008, Client's home suffered from a second fire which caused additional damage to his personal property.
For both fire loss claims, Client hired a public adjuster who assisted Client with his claim submission to his homeowner's insurance carrier
("Insurer").
Client is dissatisfied with the amount of money that Insurer has so far
paid on his personal property losses for both fire claims and contends that Insurer has inaccurately calculated depreciation on many of his items.
Prior to hiring attorney, Client filed a complaint against Insurer in
pro per in Alameda County Superior Court. Said complaint has not yet been served.
Client hires Attorney to represent him against Insurer and any other
reasonably necessary defendants.
Attorney will provide those legal services reasonably required to represent Client, including without limitation, participation in negotiation, mediation, arbitration and/or litigation.
Should the need arise for legal representation for matters not reasonably related to prosecution of the matters described in this section, including without limitation tax advice, both Attorney and Client realize that Client shall have to request and pay for that legal representation separately.
3.
CLIENT'S DUTIES
Client agrees to be truthful with Attorney, to cooperate, to keep Attorney
informed of developments and to abide by this Agreement.
4.
COMPENSATION FOR SERVICES RENDERED BY ATTORNEY AND COSTS INCURRED
Client shall retain Attorney on a ½ hourly rate, ½ contingency fee basis.
Accordingly, Client agrees to pay ½ of the hourly fees for legal services at Attorney's prevailing hourly rates, which are charged in increments of one-tenth of an hour and are subject to adjustment on an annual basis.
The current rate for partners is $300 per hour. The current rate for associates is $200 per hour. Attorney reserves the right to make an annual calendar adjustment to any of the aforementioned rates with reasonable notice to Clients.
Accordingly, Attorney's hourly compensation in this matter shall be $150 for partners and $100 per hour for associates or contract attorneys.
Client also agrees that Attorney's fee shall include a reduced contingent fee of
sixteen and two-thirds percent (16-2/3%) of any gross recovery.
For the purposes of this Agreement, in determining Attorney's compensation the
term "gross recovery" shall mean the amount of the recovery before costs incurred by Attorney to third parties on Client's behalf are deducted from that sum.
Thus, the Client's "net recovery" shall be the sum of money remaining after
Attorney's compensation and costs incurred by Attorney on Client's behalf are deducted from the gross recovery.
Recovery shall be defined to include the receipt of cash or any cash equivalent or the fair market value of any non-cash benefit such as goods or services.
The fees set forth herein are not set by law, but are negotiable between Attorney and Client. Attorney and Client have discussed the compensation and have agreed to the compensation set forth herein. Client hereby acknowledges that he has been advised to seek independent legal advice about the terms of this Agreement and has had the opportunity to do so.
Client has been provided a copy of Business and Professions Code section 6147
and believes that Attorney has complied with all applicable provisions.
Client shall pay to Attorney a $5,000 advance fee for legal services to be rendered and costs to be incurred, which shall be placed in Attorney's trust account. Client authorizes Attorney to withdraw sums from the advance fee to pay Attorney's fees and costs incurred on Client's behalf. Any unused portion of the advance fee at the conclusion of Attorney's services will be refunded to Client.
Upon exhaustion of the $5,000 advance fee, and at Attorney's request, Client
shall pay Attorney an additional $5,000 advance fee, which shall be subject to the same terms. Thereafter, and throughout its representation of Client, at Attorney's request, Client shall pay to Attorney funds sufficient to maintain the advance fee for legal services to be rendered and costs to be incurred at $5,000.
Attorney will bill Client on a monthly basis, or less frequently in Attorney's
discretion, for services rendered and costs incurred. Costs may include without limitation filing costs and expenses, service costs and expenses, consultant and expert witness fees, photocopying charges, investigation expenses, travel expenses, deposition and discovery expenses, technological expenses, and other similar items. Client authorizes Attorney to incur all reasonable costs and to hire any investigators or consultants reasonably necessary in Attorney's judgment.
Attorney's fees and costs shall be paid by Client within thirty (30) days after the date of Attorney's written statement for services rendered and costs incurred. In the event that any payment is delinquent more than thirty (30) days, the outstanding balance shall accrue ten percent (10%) simple interest per annum.
Should costs exceed the amount that Attorney has in trust for Client, i.e., the
advance fee, Attorney reserves the right to have Client provide funds in advance to cover costs.
By this Agreement, Attorney is given a lien on any recovery received by Client to assure payment of Attorney's fees and costs advanced to third parties. Attorney is also entitled to 10% per annum simple interest on Attorney's outstanding fees and costs. Client acknowledges that he has been advised of Attorney's right to collect interest, and of Attorney's lien, and that he has been given a reasonable opportunity to seek the advice of independent counsel before agreeing to Attorney's lien and Attorney's right to recover interest.
Client has previously engaged the services of a public adjuster and Client
expressly acknowledges that he is solely responsible for satisfying any claims by said public adjuster either out of Client's portion of any recovery or otherwise.
6. SETTLEMENT
No settlement shall be made without the consent of the parties hereto.
7. INSURANCE
Attorney maintains errors and omissions insurance coverage applicable to
services to be rendered, in a legally sufficient amount.
8. WITHDRAWAL
Attorney may withdraw at any time upon giving reasonable notice, and Client
may discharge Attorney as counsel of record at any time
9. REVIEW OF AGREEMENT
Client acknowledges that he has been advised to seek independent counsel to
review this Agreement. Client represents and warrants that he has done so prior to execution, or has expressly chosen to forego said independent advice.
Dated: ______________, 2010 Client:
Dated: ______________, 2010 Attorney: "
The attorney/client fee agreement:
"This Agreement (hereinafter referred to as the "Agreement") is entered into
between xxxxxxxxx (hereinafter referred to as "Attorney") and xxxxxxxxxxx
xxxxx (hereinafter referred to as "Client").
1. CONDITIONS
This Agreement will not take effect, and Attorney will have no obligation to
provide further legal services, until a signed copy of this Agreement is received by
Attorney.
2. SCOPE OF SERVICES
In 2008, Client's home located in California
suffered from a fire causing among other things, damage to his personal property. Also in 2008, Client's home suffered from a second fire which caused additional damage to his personal property.
For both fire loss claims, Client hired a public adjuster who assisted Client with his claim submission to his homeowner's insurance carrier
("Insurer").
Client is dissatisfied with the amount of money that Insurer has so far
paid on his personal property losses for both fire claims and contends that Insurer has inaccurately calculated depreciation on many of his items.
Prior to hiring attorney, Client filed a complaint against Insurer in
pro per in Alameda County Superior Court. Said complaint has not yet been served.
Client hires Attorney to represent him against Insurer and any other
reasonably necessary defendants.
Attorney will provide those legal services reasonably required to represent Client, including without limitation, participation in negotiation, mediation, arbitration and/or litigation.
Should the need arise for legal representation for matters not reasonably related to prosecution of the matters described in this section, including without limitation tax advice, both Attorney and Client realize that Client shall have to request and pay for that legal representation separately.
3.
CLIENT'S DUTIES
Client agrees to be truthful with Attorney, to cooperate, to keep Attorney
informed of developments and to abide by this Agreement.
4.
COMPENSATION FOR SERVICES RENDERED BY ATTORNEY AND COSTS INCURRED
Client shall retain Attorney on a ½ hourly rate, ½ contingency fee basis.
Accordingly, Client agrees to pay ½ of the hourly fees for legal services at Attorney's prevailing hourly rates, which are charged in increments of one-tenth of an hour and are subject to adjustment on an annual basis.
The current rate for partners is $300 per hour. The current rate for associates is $200 per hour. Attorney reserves the right to make an annual calendar adjustment to any of the aforementioned rates with reasonable notice to Clients.
Accordingly, Attorney's hourly compensation in this matter shall be $150 for partners and $100 per hour for associates or contract attorneys.
Client also agrees that Attorney's fee shall include a reduced contingent fee of
sixteen and two-thirds percent (16-2/3%) of any gross recovery.
For the purposes of this Agreement, in determining Attorney's compensation the
term "gross recovery" shall mean the amount of the recovery before costs incurred by Attorney to third parties on Client's behalf are deducted from that sum.
Thus, the Client's "net recovery" shall be the sum of money remaining after
Attorney's compensation and costs incurred by Attorney on Client's behalf are deducted from the gross recovery.
Recovery shall be defined to include the receipt of cash or any cash equivalent or the fair market value of any non-cash benefit such as goods or services.
The fees set forth herein are not set by law, but are negotiable between Attorney and Client. Attorney and Client have discussed the compensation and have agreed to the compensation set forth herein. Client hereby acknowledges that he has been advised to seek independent legal advice about the terms of this Agreement and has had the opportunity to do so.
Client has been provided a copy of Business and Professions Code section 6147
and believes that Attorney has complied with all applicable provisions.
Client shall pay to Attorney a $5,000 advance fee for legal services to be rendered and costs to be incurred, which shall be placed in Attorney's trust account. Client authorizes Attorney to withdraw sums from the advance fee to pay Attorney's fees and costs incurred on Client's behalf. Any unused portion of the advance fee at the conclusion of Attorney's services will be refunded to Client.
Upon exhaustion of the $5,000 advance fee, and at Attorney's request, Client
shall pay Attorney an additional $5,000 advance fee, which shall be subject to the same terms. Thereafter, and throughout its representation of Client, at Attorney's request, Client shall pay to Attorney funds sufficient to maintain the advance fee for legal services to be rendered and costs to be incurred at $5,000.
Attorney will bill Client on a monthly basis, or less frequently in Attorney's
discretion, for services rendered and costs incurred. Costs may include without limitation filing costs and expenses, service costs and expenses, consultant and expert witness fees, photocopying charges, investigation expenses, travel expenses, deposition and discovery expenses, technological expenses, and other similar items. Client authorizes Attorney to incur all reasonable costs and to hire any investigators or consultants reasonably necessary in Attorney's judgment.
Attorney's fees and costs shall be paid by Client within thirty (30) days after the date of Attorney's written statement for services rendered and costs incurred. In the event that any payment is delinquent more than thirty (30) days, the outstanding balance shall accrue ten percent (10%) simple interest per annum.
Should costs exceed the amount that Attorney has in trust for Client, i.e., the
advance fee, Attorney reserves the right to have Client provide funds in advance to cover costs.
By this Agreement, Attorney is given a lien on any recovery received by Client to assure payment of Attorney's fees and costs advanced to third parties. Attorney is also entitled to 10% per annum simple interest on Attorney's outstanding fees and costs. Client acknowledges that he has been advised of Attorney's right to collect interest, and of Attorney's lien, and that he has been given a reasonable opportunity to seek the advice of independent counsel before agreeing to Attorney's lien and Attorney's right to recover interest.
Client has previously engaged the services of a public adjuster and Client
expressly acknowledges that he is solely responsible for satisfying any claims by said public adjuster either out of Client's portion of any recovery or otherwise.
6. SETTLEMENT
No settlement shall be made without the consent of the parties hereto.
7. INSURANCE
Attorney maintains errors and omissions insurance coverage applicable to
services to be rendered, in a legally sufficient amount.
8. WITHDRAWAL
Attorney may withdraw at any time upon giving reasonable notice, and Client
may discharge Attorney as counsel of record at any time
9. REVIEW OF AGREEMENT
Client acknowledges that he has been advised to seek independent counsel to
review this Agreement. Client represents and warrants that he has done so prior to execution, or has expressly chosen to forego said independent advice.
Dated: ______________, 2010 Client:
Dated: ______________, 2010 Attorney: "
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