Fees Self-Quiz
Prince Akeem of Zamunda is
the son of a rich diplomat living in the U.N. Towers. He owns a jewelry
distribution company that rakes in millions. Akeem approaches you, an
attorney well-versed in the contracts of jewel distributors, in order
to negotiate for deals with diamond extractors. In setting your fee,
you account for the fact that Akeem is phenomenally rich and charge more
than you should. You figure, “So what! The money, in relative terms,
is like peanuts for His Highness.” Are you subject to discipline?
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You represent a civil rights
group charging that the government performed creepy medical experiments
in the name of national security on people born in certain foreign countries
many years ago. A federal statute provides that in the event it is proven
that the government committed these acts, attorney fees may be added
to a recovery by plaintiffs in a suit against the government. Your clients
prevail in court after a lengthy battle. They are awarded a mere $15.00
each—in the aggregate it amounted to about $1500. They are especially
peeved when they find out that you submitted a bill to the court, charging
$400,000 in attorney fees for logging 3,000 hours of work on the case.
The clients are shocked that you stand to make so much money off of their
misfortune. They report you to the local ethics board. Are you subject
to discipline?
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You represent Desiree Sapphire
in her divorce from Telemachus Hirschorn. Desiree chooses you because
you’re smart, witty, attractive, and you have a phenomenal sense
of humor. You want to do your best for her, especially because she’s
phenomenally wealthy and might get you some exclusive backstage passes
at Carnegie Hall, of which she’s a major benefactor. Her divorce
from Telemachus is something like a corporate divestiture – both
had billions before they married; she from her family’s business
in gems, and he from his family’s shipping business. You make a
deal with Desiree that you’ll work on a contingent fee – once
a satisfactory settlement with Telemachus is reached, you will collect
around 2% of her award. You’re happy because 2% could mean a lot
of money for you in the end. But is there an ethical issue to contend
with?
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Jerghin Phurl contacts you
about representing her in a wrongful death suit against a company whose
crazy employee shot and killed her husband. Every lawyer she has spoken
with quoted her a 30% contingent fee, and she’s looking to do better.
She wants every penny to go to her kids’ college education, and
not to her lawyer. You offer her a 15% fee, and she agrees on the spot.
You shake hands. The next hour you file a complaint, happy as a clam
that you will be able to pay back your own law school loans when the
case finally settles. Are there any ethical problem here?
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You are the head of your county
bar association. You and your associates perceive a general dissatisfaction
in the community with the way lawyers in the community set fees. People
are up in arms about high legal bills, and you and the other lawyers’ reputations
have subsequently suffered. You are a good person, and came into the
practice of law with the hope of making a positive contribution to society.
You’ve maintained high ethical standards, and you try to give your
all for your clients. As an active philanthropist you’ve also given
a whole lot of charity – especially the American Cancer Society,
of which you are on the board of directors. To make amends and account
for dissatisfaction in the community, you and your associates make an
agreement limiting the amount of money you can charge on personal injury
cases. Are there any problems with this?
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You are a personal injury
attorney who finds a goldmine of a plaintiff. A poor man suffered a brain
injury as a result of eating a tainted hamburger at a greasy fast food
restaurant. Unfortunately, you feel your experience does not allow you
to take on the case by yourself. Therefore, you solicit the help of a
friend, who is an expert personal injury attorney with years of experience
in tort law. You make an agreement to split a reasonable contingent fee
50-50. The client consents in writing to have two lawyers – you
will perform research and gather evidence, and your friend will make
court appearances on behalf of the client. For the most part, the work
you will both be doing will be about equal. What’s wrong, from
an ethical point of view?
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