100220 NYEO, ETH 1202

• Case Date: October 02, 2020
• Court: New York

ETH 1202 Ethics Opinion 1202 New York Ethics Opinion October 2, 2020          Topic: Legal fees          Digest: A lawyer may charge a fixed fee for a matter as long as it is not excessive, and the lawyer specifies the services that are included in the engagement. The client must remain liable for costs, other than as permitted by Rule 1.8(e). The lawyer may require advance payment of fees, which is not to be considered a minimum fee unless specified in the retainer agreement. Although a lawyer may charge a non-excessive minimum fee, the lawyer may not charge a non-refundable fee. If the lawyer is discharged, the lawyer must return any unearned fees. The lawyer may agree with the client that the client need not pay a portion of the legal fee if the client believes the lawyer’s services do not merit the additional amount.          Rules: 1.5(a), 1.5(b), 1.5(d)(4), 1.8(e), 1.16(e)          FACTS          1. The inquirer is starting an immigration law practice and is considering how to structure client payment obligations based upon a flat fee. Two possible arrangements are proposed. In the first proposal, 50% of the fee would be payable up front, when the client signs the retainer agreement. The remaining 50% would be payable in two equal payments – one to be billed halfway into the engagement, and the final payment to be billed upon completion of the engagement. In the second proposal, after payment of an initial retainer, the balance would be paid in monthly installments, with final payment payable upon completion of the engagement. In both arrangements, the client would remain responsible for filing fees and other costs, and in both arrangements the retainer agreement would provide that, in full satisfaction of the client’s fee obligation, the inquirer would accept payment for some designated portion of the final balance in an amount that the client unilaterally determined that the legal services had been worth.          QUESTION          2. What ethical considerations apply to inquirer’s proposed fee agreements?          OPINION          3. Rule 1.5 of the New York Rules of Professional Conduct (the...