Non-Contingent Fee Agreements. In non-contingent matters, Section 6148 of the Business and Professions Code requires California attorneys to have written fee agreements with their clients whenever the client’s total expense, including fees, will foreseeably exceed $1,000 and to provide a duplicate copy of the fully executed agreement to the client. The fee agreement must state:
Non-Contingent Fee Agreements. In non-contingent matters, there is no specific requirement under the Rules of Professional Conduct that a fee agreement be in writing. However, it is highly recommended that lawyers reduce all fee arrangements to writing to avoid any misunderstanding. Supreme Court Rule 4-1.5(b) requires that when a lawyer has not regularly represented the client, the basis or rate of the fee shall be communicated to the client, preferably in writing, before or within a reasonable time after commencing the representation. The Comment to the rule cautions that in a new lawyer-client relationship, the fee must be promptly established. The detail that is necessary in a fee agreement is defined by the circumstances. A lawyer has a duty to communicate with the client to the extent reasonably necessary to permit the client to make informed decisions regarding the representation. [Rule 4-1.4(b)] This would include providing sufficient information about the anticipated fees and costs so that the client can make an informed decision on how to proceed. Generally, it is desirable to furnish the client with at least a simple memorandum or copy of the lawyer's customary fee arrangements that states the general nature of the legal services to be provided, the basis, rate or total amount of the fee, and whether and to what extent the client will be responsible for any costs, expenses or disbursements in the course of the representation. A written statement concerning the terms of the engagement reduces the possibility of misunderstanding. [Comment to Rule 4-1.5] The scope of representation should be set forth and any limits on what the lawyer will do must be clearly spelled out. A lawyer may limit the objectives of the representation if the client gives informed consent [Rule 4- 1.2(c)] However, any limitation must accord with the Rules of Professional Conduct and other law. A client may not be asked to agree to representation so limited in scope as to violate Rule 4-1.1relating to competence or to surrender the right to terminate the lawyers’ services or the right to settle litigation that the lawyer might wish to continue. [Comment, Rule 4-1.2] A lawyer cannot limit their duties or liability under the Rules of Professional Conduct in the fee agreement. For example, a lawyer could not undercut their responsibility to comply with the requirements of Rule 4-1.16 on terminating the lawyer client relationship, by stating in the fee agreement that he or she can withdraw from employment with...
Non-Contingent Fee Agreements. In non-contingent matters, Section 6148 of the Business and Professions Code requires California attorneys to have written fee agreements with their clients whenever the client’s total expense, including fees, will foreseeably exceed $1,000 and to provide a duplicate copy of the fully executed agreement to the client. The fee agreement must state: Any basis for compensation including, but not limited to, hourly rates, statutory or flat fees, and other standard rates, fees and charges; The general nature of the legal services to be provided to the client; The responsibilities of attorney and client under the agreement. If an attorney fails to comply with the statute, the fee agreement becomes voidable at the client’s option, whereupon the attorney is entitled to a "reasonable" fee. A written fee agreement is not required when services are rendered in an emergency to avoid prejudice to the client or where a writing is otherwise impractical; when the client is a corporation; when the client, after full disclosure, makes a written waiver of the benefits of section 6148; or when the fee agreement is implied in fact by prior services of the same general kind having been rendered to and paid for by the client. The attorney is urged to use caution in relying upon these “exceptions.” There can be very few circumstances where a written fee agreement is not advisable. Section 6148(b) requires attorneys to provide their clients with written billing statements. A client may request such statements at minimum intervals of 30 days. The attorney must provide a statement within 10 days after demand. All statements, whether requested by the client or not, must state "...the amount, rate and basis for calculation or other method of determination of the attorneys fees and costs." (subd.(b)).
