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Fee AgreementsDos and Donts

Sheila BlackfordDee CrockerBeverly Michaelis

PLF Practice Management Advisors

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Topics

1. Fee Agreement Essentials

2. Practical Considerations3. Ethical Limitations

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Fee AgreementEssentials

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Scope of Engagement:

Clients Point-of-View

My lawyer will fixeverything.

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Scope of Engagement:Lawyers Point-of-View

Establish limits of representation Describe steps to be taken

Specify responsibilities

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Timing of Services:

Clients Point-of-View

My lawyer will start work right away.

I dont have to worry

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Timing of Services:

Lawyers Point-of-ViewI will start when:

The client pays me

The client provides documents

The client takes some other action

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Fees and Billing:

Clients Point of View

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Fees and Billing:

Lawyers Point-of-View

1. Explain your fee

2. Define costs

3. Make it easy

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Essential Tools

1. Billing brochure

2. PLF letters

3. OSB Fee Agreement Compendium

4. The Ethical Oregon Lawyer, Ch. 3

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Considerations

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File Ownership and Retention

1. To whom does the file belong?

2. How long will it be kept?

3. How will it be disposed of?

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ClientCooperation

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Communicating by E-Mail

Is the attorney-client privilege waived if

a client reads your e-mail at work?

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Protecting Your Clients

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Ethical Limitations

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Earned Upon Receipt Fees

Signed written agreement required

Describe as earned upon receipt

Include disclosures required by ORPC 1.5

OSB Opinion 2005-151

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Earned Upon Receipt Fees

Refund balance if work not done

Avoid nonrefundable

See PLF sample agreement

OSB Opinion 2005-151

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Third Party Payment

1. Comply with ORPC 1.8(f)

2. Redact billing statements sent to third

parties

3. Document who receives refund of

unearned fees

OSB Opinion 2005-157

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Charging Interest

9% statutory rate applies

Can assess credit card interest

only if client expressly agrees

OSB Opinion 2005-97

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Modifying Your Agreement

Explanation for the change +

Explanation of effect on client +

Client consent +

Objective fairness =

Allowable modification

OSB Opinion 2005-97

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Attorney Fee Awards

1. Attorney fees are client property

2. What if the award is insufficient?

3. What if the award exceeds your fee?

OSB Opinion 2005-69

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Fees in

Structured Settlements Must be prorated over life of settlement

Unless client expressly agrees your feecomes off the top

OSB Opinion 2005-15

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Division of Fees

Between Lawyers1. Requires informed consent

2. Total fee cannot be excessive

3. Use disclosure and consent letters

4. Rules apply to referral fees

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Merchant Charges

Express agreement to pay?

TILA disclosures made?

Cash discount offered?

OSB Opinion 2005-172

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Vague Terms

1. Resolved in clients favor!

2. Be clear and specific

3. Anticipate

4. Plan ahead

OSB Opinion 2005-124

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Contact Us

Sheila Blackford sheilab@osbplf.orgDee Crocker deec@osbplf.org

Beverly Michaelis beverlym@osbplf.org

PLF Practice Management Advisors

503-639-6911 * 800-452-1639

and confidential

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