Fees and disbursements

Question 1

What are the two essential terms of discussion with a prospective client?

Answer 1

1. The scope of the legal services to be provided
2. the costs of those services

Question 2

What are the rules surrounding a “money retainer”?

Answer 2

1. obtained from the client at the beginning of the professional relationship
2. it is deposited into the lawyer’s trust account
3. as the lawyer works, they must send a bill (an “account”) to the client that lists the work done and the charges
4. only after sending that bill, the lawyer is allowed to take money from the trust account to pay themselves

Question 3

what is a fee versus a disbursement?

Answer 3

A fee refers to the amount charged to a client for the legal services provided
A disbursement refers to any expense that the lawyer pays on behalf of the client for which the lawyer is entitled to be reimbursed by the client.

Question 4

What is the Professional Rule surrounding fees and disbursements?

Answer 4

1. Lawyers may only charge or accept an amount for a fee or disbursement that is fair, reasonable, and has been disclosed in a timely fashion
2. Must be in writing

Question 5

When is the time frame for disclosing fees/disbursements?

Answer 5

Before, or within a reasonable time after beginning representation/after being retained

Question 6

What are lawyers prohibited from doing when it comes to fees/disbursements?

Answer 6

1. Accepting payment or compensation from anyone other than the client (unless the client is informed and consents in writing)
2. Accepting hidden fees - payments must not be hidden from the client
3. Legal services provided through a civil society organization (CSO) must be provided at no cost to the client - only in some cases are they permitted
4. must not charge interest on an overdue account