MPRE Fees and Expenses 3 — Questions and Answers
Question 1: A lawyer who successfully completes a contingency fee case must provide the client with a written statement after the matter concludes. What must the statement include under Model Rule 1.5(c)?
- Only the total amount recovered and the attorney's fee.
- The outcome of the matter, the remittance to the client, and the method of its determination. (Correct answer)
- An itemized bill of all hours worked during the representation.
- A certification that the fee complies with local bar fee guidelines.
Correct answer: The outcome of the matter, the remittance to the client, and the method of its determination.
Rule 1.5(c) requires a written statement showing the outcome, the remittance to the client, and how it was determined.
Question 2: A client and attorney enter into a fee agreement that includes a provision requiring the client to pay the attorney's fees even if the client fires the attorney without cause. Under the Model Rules, such a provision is:
- Always enforceable because the client agreed to it.
- Unenforceable because it restricts the client's right to discharge the attorney.
- Permissible if the fee that results is reasonable under all circumstances. (Correct answer)
- Permissible only in commercial matters, not personal legal disputes.
Correct answer: Permissible if the fee that results is reasonable under all circumstances.
A fee provision is not per se prohibited simply because the client terminates, but the resulting fee must still be reasonable under Rule 1.5(a).
Question 3: An attorney charges a client for in-house photocopying at $0.50 per page, even though the actual cost is $0.05 per page, without disclosing the markup. Under the Model Rules, this practice is:
- Permissible because expense billing practices are not regulated by the Model Rules.
- Permissible if industry custom supports such markups.
- Improper because expenses charged to clients must reflect actual costs unless the client consents to a different arrangement. (Correct answer)
- Permissible so long as the total bill is reasonable.
Correct answer: Improper because expenses charged to clients must reflect actual costs unless the client consents to a different arrangement.
Lawyers may charge for expenses but not at inflated rates without client consent; such markups can render the fee unreasonable or constitute a misrepresentation.
Question 4: A lawyer refers a client to another attorney and receives a referral fee from that attorney. Under the Model Rules, this is permissible if:
- The referral fee is under $500.
- The lawyer does no further work on the matter.
- The total fee is reasonable, the client is informed and consents in writing, and the division is proportionate to services or involves joint responsibility. (Correct answer)
- The referring lawyer remains available to consult on the matter.
Correct answer: The total fee is reasonable, the client is informed and consents in writing, and the division is proportionate to services or involves joint responsibility.
Rule 1.5(e) governs fee divisions between lawyers in different firms and requires proportionality or joint responsibility, client written consent, and a reasonable total fee.
Question 5: A prospective client consults an attorney who declines the case. Later, the attorney discovers information the client shared during the consultation could be valuable if sold to an opposing party. Charging the prospective client a consultation fee for this meeting would be:
- Permissible if disclosed in advance.
- Permissible only if the meeting exceeded one hour.
- Impermissible if no fee arrangement was established before the consultation. (Correct answer)
- Always impermissible because consultations must be free.
Correct answer: Impermissible if no fee arrangement was established before the consultation.
A lawyer may charge a consultation fee only if that arrangement was communicated to the prospective client before the consultation.
Question 6: A lawyer agrees to represent a criminal defendant in exchange for a fee contingent on acquittal. Under the Model Rules, this arrangement is:
- Permissible if the defendant consents in writing.
- Permissible if the fee is otherwise reasonable.
- Prohibited because contingency fees in criminal cases are forbidden. (Correct answer)
- Prohibited only if the jurisdiction has a specific rule against it.
Correct answer: Prohibited because contingency fees in criminal cases are forbidden.
Model Rule 1.5(d)(2) expressly prohibits contingency fees in criminal cases.
Question 7: A lawyer charges a long-standing client a higher rate than new clients for the same services because the lawyer perceives the relationship as more valuable. Under the Model Rules, this is:
- Always permissible as a business decision.
- Permissible if the client was informed of the rate before the engagement.
- Improper if the resulting fee is unreasonable under Rule 1.5(a) factors. (Correct answer)
- Improper because the Model Rules require uniform billing rates.
Correct answer: Improper if the resulting fee is unreasonable under Rule 1.5(a) factors.
There is no uniform rate requirement, but any fee charged must satisfy the reasonableness test under Rule 1.5(a).
MPRE Fees and Expenses 3
A lawyer who successfully completes a contingency fee case must provide the client with a written statement after the matter concludes.
What must the statement include under Model Rule 1.5(c)?