Rule 1.5. Fees

(a) A lawyer shall not make an agreement for, charge, or

collect an unreasonable fee or an unreasonable amount for

expenses. The factors to be considered in determining the

reasonableness of a fee include the following:

(1) the time and labor required, the novelty and difficulty

of the questions involved, and the skill requisite to perform the

legal service properly;

(2) the likelihood, that the acceptance of the particular

employment will preclude other employment by the lawyer;

(3) the fee customarily charged in the locality for similar

legal services;

(4) the amount involved and the results obtained;

(5) the time limitations imposed by the client or by the

circumstances;

(6) the nature and length of the professional relationship

with the client;

(7) the experience, reputation, and ability of the lawyer

or lawyers performing the services; and

(8) whether the fee is fixed or contingent.

(b) If a fee will exceed $1000, the basis or rate of the fee

shall be communicated to the client in a written fee agreement

before or within a reasonable time after commencing the

representation. This written fee agreement shall describe the

scope of the representation and shall include the disclosure

required under Rule 1.4(c). In a case involving litigation, the

lawyer shall notify the client in the written fee agreement that

the client may be liable for the opposing party’s costs, fees, or

expenses if the client is not the prevailing party.

me after commencing the

representation. This written fee agreement shall describe the

scope of the representation and shall include the disclosure

required under Rule 1.4(c). In a case involving litigation, the

lawyer shall notify the client in the written fee agreement that

the client may be liable for the opposing party’s costs, fees, or

expenses if the client is not the prevailing party.

(c) A fee may be contingent on the outcome of the

matter for which the service is rendered, except in a matter in

which a contingent fee is prohibited by paragraph (d) or other

law. A fee agreement that is in whole or part contingent shall

be in writing and shall state the method by which the fee is to

be determined, including the percentage or percentages that

shall accrue to the lawyer in the event of settlement, trial or

appeal; litigation and other expenses to be deducted from the

recovery; and whether such expenses are to be deducted before

or after the contingent fee is calculated. In addition, the written

agreement shall include the disclosure required by Rule 1.4(c)

and shall state any costs, fees, or expenses for which the client

may be liable, either to the lawyer or to the opposing party.

Upon conclusion of a contingent fee matter, the lawyer shall

provide the client with a written statement stating the outcome

of the matter and, if there is a recovery, showing the remittance

to the client and the method of its determination.

(d) A lawyer shall not enter into an arrangement for,

charge, or collect:

(1) any fee in a domestic relations matter, the payment or

amount of which is contingent upon the securing of a divorce

or upon the establishment or modification of alimony or

support, or property settlement in lieu thereof; or

(2) a contingent fee for representing a defendant in a

criminal case.

its determination.

(d) A lawyer shall not enter into an arrangement for,

charge, or collect:

(1) any fee in a domestic relations matter, the payment or

amount of which is contingent upon the securing of a divorce

or upon the establishment or modification of alimony or

support, or property settlement in lieu thereof; or

(2) a contingent fee for representing a defendant in a

criminal case.

(e) A division of a fee between lawyers who are not in

the same firm may be made only if:

(1) the division is in proportion to the contribution of

each firm or, by written agreement with the client, each firm

assumes joint responsibility for the representation;

(2) the client agrees to the participation of each firm,

including the share each firm will receive, and the participation

is confirmed to the client in writing; and

(3) the total fee is reasonable.

(f) A lawyer should seek to avoid controversies over

fees with clients and should attempt to resolve amicably any

differences on the subject.

(g) For purposes of sections (b) and (c) of this rule, the

word “client,” in addition to the definition contained in Rule

9.1, also includes any person or entity responsible for paying

the fees for professional services rendered by a lawyer.

ALASKA COMMENT

The words “if apparent to the client” were deleted from

Model Rule 1.5(a)(2). An attorney should be allowed to

increase his or her fees if there is a likelihood that the

representation will preclude other employment. This is true

regardless of whether the likelihood is apparent to the client.

The Committee concluded that advice to the client

concerning potential liability for costs, attorney’s fees and

other expenses should be specifically set out in the written fee

agreement in order that the client might be fully informed

if there is a likelihood that the

representation will preclude other employment. This is true

regardless of whether the likelihood is apparent to the client.

The Committee concluded that advice to the client

concerning potential liability for costs, attorney’s fees and

other expenses should be specifically set out in the written fee

agreement in order that the client might be fully informed.

Lawyers may use the following language to notify the

client of the client’s potential liability for costs, fees or

expenses if the client is not the prevailing party in litigation:

“Under the law, you may have to pay some or all of the costs,

fees and expenses of your opponents in your case if you don’t

win your case or if you reject an offer that turns out to be better

than your results at trial.”

COMMENT

Reasonableness of Fee and Expenses

Paragraph (a) requires that lawyers charge fees that are

reasonable under the circumstances. The factors specified in

(1) through (8) are not exclusive. Nor will each factor be

relevant in each instance. Paragraph (a) also requires that

expenses for which the client will be charged must be

reasonable. A lawyer may seek reimbursement for the cost of

services performed in-house, such as copying, or for other

expenses incurred in-house, such as telephone charges, either

by charging a reasonable amount to which the client has agreed

in advance or by charging an amount that reasonably reflects

the cost incurred by the lawyer. A contingent fee arrangement

is prohibited in domestic relations cases only with regard to

proceedings to establish or modify alimony, child support, and

property settlement in lieu of alimony or child support, and not

to proceedings initiated for the collection of amounts in

default.

Basis or Rate of Fee

When the lawyer has regularly represented a client, they

ordinarily will have evolved an understanding concerning the

basis or rate of the fee and the expenses for which the client

will be responsible

or modify alimony, child support, and

property settlement in lieu of alimony or child support, and not

to proceedings initiated for the collection of amounts in

default.

Basis or Rate of Fee

When the lawyer has regularly represented a client, they

ordinarily will have evolved an understanding concerning the

basis or rate of the fee and the expenses for which the client

will be responsible. In a new client-lawyer relationship,

however, an understanding as to fees and expenses must be

promptly established. Generally, it is desirable to furnish the

client with at least a simple memorandum or copy of the

lawyer’s customary fee arrangements that states the general

nature of the legal services to be provided, the basis, rate or

total amount of the fee and whether and to what extent the

client will be responsible for any costs, expenses, or

disbursements in the course of the representation. A written

statement concerning the terms of the engagement reduces the

possibility of misunderstanding.

Contingent fees, like any other fees, are subject to the

reasonableness standard of paragraph (a) of this Rule. In

determining whether a particular contingent fee is reasonable,

or whether it is reasonable to charge any form of contingent

fee, a lawyer must consider the factors that are relevant under

the circumstances. Applicable law may impose limitations on

contingent fees, such as a ceiling on the percentage allowable,

or may require a lawyer to offer clients an alternative basis for

the fee. Applicable law also may apply to situations other than

a contingent fee, for example, government regulations

regarding fees in certain tax matters.

Terms of Payment

A lawyer may require advance payment of a fee, but is

obliged to return any unearned portion. See Rule 1.16(d)

as a ceiling on the percentage allowable,

or may require a lawyer to offer clients an alternative basis for

the fee. Applicable law also may apply to situations other than

a contingent fee, for example, government regulations

regarding fees in certain tax matters.

Terms of Payment

A lawyer may require advance payment of a fee, but is

obliged to return any unearned portion. See Rule 1.16(d). A

lawyer may accept property in payment for services, such as an

ownership interest in an enterprise, providing this does not

involve acquisition of a proprietary interest in the cause of

action or subject matter of the litigation contrary to Rule 1.8

(i). However, a fee paid in property instead of money may be

subject to the requirements of Rule 1.8(a) because such fees

often have the essential qualities of a business transaction with

the client.

An agreement may not be made whose terms might

induce the lawyer improperly to curtail services for the client

or perform them in a way contrary to the client’s interest. For

example, a lawyer should not enter into an agreement whereby

services are to be provided only up to a stated amount when it

is foreseeable that more extensive services probably will be

required, unless the situation is adequately explained to the

client. Otherwise, the client might have to bargain for further

assistance in the midst of a proceeding or transaction.

However, it is proper to define the extent of services in light of

the client’s ability to pay. A lawyer should not exploit a fee

arrangement based primarily on hourly charges by using

wasteful procedures.

Prohibited Contingent Fees

Paragraph (d) prohibits a lawyer from charging a

contingent fee in a domestic relations matter when payment is

contingent upon the securing of a divorce or upon the amount

of alimony or support or property settlement to be obtained

client’s ability to pay. A lawyer should not exploit a fee

arrangement based primarily on hourly charges by using

wasteful procedures.

Prohibited Contingent Fees

Paragraph (d) prohibits a lawyer from charging a

contingent fee in a domestic relations matter when payment is

contingent upon the securing of a divorce or upon the amount

of alimony or support or property settlement to be obtained.

This provision does not preclude a contract for a contingent fee

for legal representation in connection with the recovery of

post-judgment balances due under support, alimony, or other

financial orders because such contracts do not implicate the

same policy concerns.

Division of Fee

A division of fee is a single billing to a client covering the

fee of two or more lawyers who are not in the same firm. A

division of fee facilitates association of more than one lawyer

in a matter in which neither alone could serve the client as

well, and most often is used when the fee is contingent and the

division is between a referring lawyer and a trial specialist.

Paragraph (e) permits the lawyers to divide a fee either on the

basis of he proportion of services they render or if each lawyer

assumes responsibility for the representation as a whole. In

addition, the client must agree to the arrangement, including

the share that each lawyer is to receive, and the agreement

must be confirmed in writing. Contingent fee agreements must

be in a writing signed by the client and must otherwise comply

with paragraph (c) of this Rule. Joint responsibility for the

representation entails financial and ethical responsibility for

the representation as if the lawyers were associated in a

partnership. A lawyer should only refer a matter to a lawyer

whom the referring lawyer reasonably believes is competent to

handle the matter. See Rule 1.1.

Paragraph (e) does not prohibit or regulate division of fees

to be received in the future for work done when lawyers were

previously associated in a law firm

al responsibility for

the representation as if the lawyers were associated in a

partnership. A lawyer should only refer a matter to a lawyer

whom the referring lawyer reasonably believes is competent to

handle the matter. See Rule 1.1.

Paragraph (e) does not prohibit or regulate division of fees

to be received in the future for work done when lawyers were

previously associated in a law firm.

Disputes over Fees

If a procedure has been established for resolution of fee

disputes, such as an arbitration or mediation procedure

established by the bar, the lawyer must comply with the

procedure when it is mandatory, and, even when it is

voluntary, the lawyer should conscientiously consider

submitting to it. Law may prescribe a procedure for

determining a lawyer’s fee, for example, in representation of

an executor or administrator, a class or a person entitled to a

reasonable fee as part of the measure of damages. The lawyer

entitled to such a fee and a lawyer representing another party

concerned with the fee should comply with the prescribed

procedure.