(a) A lawyer shall
not make an
agreement for,
charge, or collect
an unreasonable fee
or an unreasonable
amount for expenses.
The factors to be
considered in
determining the
reasonableness of a
fee include the
following:
(1) the time and
labor required,
the novelty and
difficulty of
the questions
involved, and
the skill
requisite to
perform the
legal service
properly;
(2) the
likelihood, if
apparent to the
client, that the
acceptance of
the particular
employment will
preclude other
employment by
the lawyer;
(3) the fee
customarily
charged in the
locality for
similar legal
services;
(4) the amount
involved and the
results
obtained;
(5) the time
limitations
imposed by the
client or by the
circumstances;
(6) the nature
and length of
the professional
relationship
with the client;
(7) the
experience,
reputation, and
ability of the
lawyer or
lawyers
performing the
services; and
(8) whether the
fee is fixed or
contingent.
(b) The scope of the
representation and
the basis or rate of
the fee and expenses
for which the client
will be responsible
shall be
communicated to the
client, preferably
in writing, before
or within a
reasonable time
after commencing the
representation,
except when the
lawyer will charge a
regularly
represented client
on the same basis or
rate. Any changes in
the basis or rate of
the fee or expenses
shall also be
communicated to the
client.
(c) A fee may be
contingent on the
outcome of the
matter for which the
service is rendered,
except in a matter
in which a
contingent fee is
prohibited by
paragraph (d) or
other law. A
contingent fee
agreement shall be
in a writing signed
by the client and
shall state the
method by which the
fee is to be
determined,
including the
percentage or
percentages that
shall accrue to the
lawyer in the event
of settlement, trial
or appeal;
litigation and other
expenses to be
deducted from the
recovery; and
whether such
expenses are to be
deducted before or
after the contingent
fee is calculated.
The agreement must
clearly notify the
client of any
expenses for which
the client will be
liable whether or
not the client is
the prevailing
party. Upon
conclusion of a
contingent fee
matter, the lawyer
shall provide the
client with a
written statement
stating the outcome
of the matter and,
if there is a
recovery, showing
the remittance to
the client and the
method of its
determination.
(d) A lawyer shall
not enter into an
arrangement for,
charge, or collect:
(1) any fee in a
domestic
relations
matter, the
payment or
amount of which
is contingent
upon the
securing of a
divorce or upon
the amount of
alimony or
support, or
property
settlement in
lieu thereof; or
(2) a contingent
fee for
representing a
defendant in a
criminal case.
(e) A division of a
fee between lawyers
who are not in the
same firm may be
made only if:
(1) the division
is in proportion
to the services
performed by
each lawyer or
each lawyer
assumes joint
responsibility
for the
representation;
(2) the client
agrees to the
arrangement,
including the
share each
lawyer will
receive, and the
agreement is
confirmed in
writing; and
(3) the total
fee is
reasonable.
