Summary: 5) Legal Fees

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• 1 5) Legal Fees

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• Name 2 types of claims by which L Fees can be challenged.

  1) Contract Law Challenges. 2) DR Challenges

• Model Code v. Model Rules

  Model Code prohibited Ls form charging "clearly excessive fees." However, both ("unreasonable" + "clearly excessive") are defined by reference to the same 8 factors (identical).

• Identify ABA provisions: Which define "unreasonable" fees?

  1.5(a)(1)-(8)

• 1.5(a)(1). Nature of the Matter - In plain English

  L chan charge a higher hourly rate for services that require a great deal of skill, are permitted to spend more time on a complex case, etc

• 1.5(a)(2). Opportunity Costs [which L must forego] - In plain English 

  In some cases, Ls should be able to charge the C a premium for foregoing other sources of business

• 1.5(a)(3). Local Custom - In plain English

  Although not dispositive, a fee may raise eyebrows if it way out of line with what other LS in the jurisdiction charge for similar services. See in Re Fordham (Mass 1996).

• 1.5(a)(4). The Stakes for the Client - In plain English

  It is reasonable to charge a higher fee when something of great importance is on the line. See  Brobeck (US 1979)

• 1.5(a)(5). Emergencies - In plain English

  A L can charge a premium over his normal rates to compensate for the hassle, sleepless nights, or a disruption in his other business

• 1.5(a)(6). One-Shot v. Repeat Clients - In plain English

  One-Shot Clients. If C comes to L with a one time only matter, L may have an incentive to milk the matter for all its worth, thinking that C is unlikely to place future business with L anyway. 
  
  Repeat Clients. If the C has previously used L, L can be trusted because he is unlikely to over-reach and bill excessively on only 1 matter, in fear of losing C's future business

• 1.5(a)(7). You Get What You Pay For - In plain English

  One would expect to pay more for a senior partner than a junior associate ($experience). BUT do not overstate the latitude that an experience, skillful, or renowned L has in billing Cs. If L is billing by the hour, the rate is same whether he is mindless organizing documents or coming up with brilliant ideas. See In re Fordham (Mass 1996). **But note, Ls should not be billing many hours for tasks that are typically delegated to non-legal employees (paralegals, secretaries)