A new decision from the Dallas Court of Appeals provides a good summary of the jurisprudence on Rule 1.04. [1] I am aware of this case because I was hired as an expert witness in the case and testified against the applicability of an alleged agency fee agreement with the company`s former general counsel. The court dismissed my affidavit and issued a summary judgment to enforce the referral agreement, but the Dallas Court of Appeals struck it down and issued it. 2. However, points (a) and (f) shall unreservedly prohibit such activities only if profit is an essential ground for the lawyer and the request relates to matters arising from a particular event, event or series of events or events. The reason why this total ban is so limited is that there are circumstances in which the dangers of such contact can be reduced by less restrictive means. As long as the terms of paragraphs (a) (1) to (a) (3) are not violated by a particular contact, a lawyer may make personal, telephone or electronic requests if the request is not related to a particular event, event or series of events or events. Similarly, under the same restrictions, personal, telephone or other electronic requests are allowed if the potential client has a family or past or present legal relationship with the lawyer or if the potential client had already contacted the lawyer about possible employment in the case. In addition to limiting the circumstances in which referral fees may be paid, Rule 1.04 requires the Customer to accept the Agreement (1) prior to the return/transfer and (2) in writing.

This written consent must state the following: 2. If the lawyer has regularly represented a client, he or she has usually developed an understanding of the basis or rate of fees. However, if the basis or rate of fees charged to a regularly represented client deviates from the agreement developed, the lawyer should inform the client. In a new client-lawyer relationship, an understanding of fees should be established quickly. It is not necessary to recite all the underlying factors underlying the basis of the royalty, but only those that are directly involved in its calculation. For example, it is sufficient to indicate that the base rate is an hourly rate or a fixed or estimated amount to determine the factors that may be taken into account in the final determination of the tariff. If developments occur during the presentation that render a previous estimate materially inaccurate, a revised estimate must be provided to the customer. A written statement of fees reduces the possibility of misunderstandings, and if the lawyer has not regularly represented the client, it is preferable that the basis or rate of the fees be communicated to the client in writing. The presentation of a simple memorandum or a copy of the usual scale of lawyer`s fees for the client is sufficient if the basis or rate of fees is fixed.

In the case of contingency fees, a written agreement is required. Types of fees I leave it to you to read the decision and its analysis of previous jurisprudence, most of which deal with situations where the client knew and accepted the referral agreement, but did not confirm the consent in writing. In the present case, however, the court concluded that the company was not aware of the referral agreement or had not accepted the referral agreement, even though the Advocate General knew and accepted it. Because of his fiduciary duty to the Company, which he had breached, neither the General Counsel`s self-knowledge nor his consent to the referral fees are binding on the Company. 3. In the past, lawyers have used various methods to determine the fees to be charged. Typically, percentage fees and contingency fees (which may vary depending on the amount at stake or collected), hourly rates, and fixed fee agreements or combinations thereof are used. 4.

The determination of reasonable fees requires consideration of the interests of the client and the lawyer. The determination of adequacy requires the consideration of all relevant circumstances, including those referred to in point (b). Obviously, in a given situation, all the factors listed in point (b) may not be relevant and the factors that are not listed may be relevant. A lawyer`s fees vary depending on many factors, including the time required, experience, skills and reputation of the lawyer, the type of employment, the responsibilities involved and the results achieved. 5. In case of doubt as to the compatibility of a particular fee agreement with the best interests of the client, the lawyer should discuss with the client alternative billing bases for the fees and explain their implications. 6. Once a fee agreement has been concluded, a lawyer should not treat the case in such a way as to promote the lawyer`s financial interests to the detriment of the client. For example, a lawyer should not abuse a fee arrangement based primarily on hourly rates by using unnecessary procedures. Unscrupulous fees (a) A lawyer may not seek professional employment by face-to-face contact or regulated telephone or other electronic contact within the meaning of paragraph (f) in connection with a matter arising out of a particular event or event or series of events or events, a potential client or non-client who has not sought the lawyer`s opinion regarding employment, or with whom the lawyer has no family or past or present legal relationship if the lawyer`s financial advantage is an important reason for doing so. Notwithstanding the provisions of this paragraph, a lawyer from a qualified non-profit organization may contact the members of the organization to train the members to understand the law, identify legal problems, make judicious choices of lawyers or request legal services. In cases where personal, telephone or electronic contact is permitted under this paragraph, a lawyer shall not have such contact with a potential client if: 9.

Contingency and percentage fees in family law may be intended to promote divorce and may be inconsistent with a lawyer`s obligation to promote reconciliation. Such fee agreements may also result in a conflict of interest between the lawyer and the client with respect to the valuation of the assets acquired for the client. See also rule 1.08 (h). In some family law cases, such as the custody and adoption of children, no res are created to fund costs. Due to the human relationships involved and the unique nature of the procedure, contingency fee agreements are rarely justified in cases of domestic relationships. Distribution of fees A lawyer may not pay, give or offer to pay or give anything of value to a person who is not admitted to the bar or law firm, or to refer clients or potential clients to a lawyer or law firm. (2) the probability recognizable by the client that the acceptance of the respective employment prevents another employment by the advocate; 10. A fee allowance is a one-time statement to a client that covers the fees of two or more lawyers who do not work in the same law firm. A fee split facilitates the association of more than one lawyer in a case where none of them could serve the client alone, and is most often used when the fees are conditional and the allocation is between a subpoenaor or partner initially appointed by the client and a litigation specialist, but applies in all cases: in which two or more lawyers represent a single client in the same case. and whether or not it is a legal dispute. Paragraph (f) allows lawyers to apportion fees either on the basis of the proportion of services they provide or on the basis of whether each lawyer has joint responsibility for representation.

11. Contingency fee agreements must be signed in writing by the client and must otherwise comply with paragraph (d) of this rule. 12. A fee split based on the proportion of services provided by two or more lawyers provides that each lawyer provides essential legal services on behalf of the client in this matter. In particular, it requires that each lawyer participating in the fees has provided services that go beyond those initially involved in the client`s acquisition and commissioning. There must be a reasonable balance between the amount or value of the services provided and the responsibility assumed and the proportion of costs receivable. However, if each lawyer involved provides essential legal services on behalf of the client, the agreed department should have control, even if the department is not directly proportional to the actual work performed. If the costs are to be divided according to the proportion of the services provided, the agreement may provide that the award shall take place only after the conclusion of the performance. .