Fee Agreements

Dos and Donts

Sheila Blackford Dee Crocker Beverly Michaelis PLF Practice Management Advisors

Topics
1. Fee Agreement Essentials
2. Practical Considerations

3. Ethical Limitations

Fee Agreement Essentials

Scope of Engagement:
Clients Point-of-View

My lawyer will fix everything.

Scope of Engagement:
Lawyers Point-of-View
Establish limits of representation

Describe steps to be taken

Specify responsibilities

Timing of Services:
Clients Point-of-View My lawyer will start work right away. I dont have to worry

Timing of Services:
Lawyers Point-of-View
I will start when:
The client pays me The client provides documents

The client takes some other action

Fees and Billing:

Clients Point of View

Fees and Billing:

Lawyers Point-of-View
1. Explain your fee 2. Define costs 3. Make it easy

Essential Tools
1. Billing brochure
2. PLF letters 3. OSB Fee Agreement Compendium 4. The Ethical Oregon Lawyer, Ch. 3

Considerations

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?

Client Cooperation

Communicating by E-Mail
Is the attorney-client privilege waived if a client reads your e-mail at work?

Protecting Your Clients

Ethical Limitations

Earned Upon Receipt Fees

Signed written agreement required
Describe as earned upon receipt

Include disclosures required by ORPC 1.5

OSB Opinion 2005-151

Earned Upon Receipt Fees

Refund balance if work not done
Avoid nonrefundable

See PLF sample agreement

OSB Opinion 2005-151

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

Charging Interest
9% statutory rate applies

Can assess credit card interest only if client expressly agrees

OSB Opinion 2005-97

Modifying Your Agreement

Explanation for the change +
Explanation of effect on client +

Client consent +
Objective fairness =

Allowable modification
OSB Opinion 2005-97

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

Fees in Structured Settlements

Must be prorated over life of settlement
Unless client expressly agrees your fee comes off the top

OSB Opinion 2005-15

Division of Fees Between Lawyers

1. Requires informed consent 2. Total fee cannot be excessive 3. Use disclosure and consent letters

4. Rules apply to referral fees

Merchant Charges
Express agreement to pay? TILA disclosures made?

Cash discount offered?

OSB Opinion 2005-172

Vague Terms
1. Resolved in clients favor!
2. Be clear and specific

3. Anticipate
4. Plan ahead
OSB Opinion 2005-124

Contact Us
PLF Practice Management Advisors
503-639-6911 * 800-452-1639
Sheila Blackford Dee Crocker Beverly Michaelis sheilab@osbplf.org deec@osbplf.org beverlym@osbplf.org

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