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, if apparent to the client, 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) The scope of the representation and the basis or rate of the fee and

expenses for which the client will be responsible shall be communicated to the

client, preferably in writing, before or within a reasonable time after commencing the representation, except when the lawyer will charge a regularly

represented client on the same basis or rate. Contingent fee agreements must

be in writing and must comply with the provisions of the Rules Governing

Contingent Fees for Members of the Wyoming State Bar. Any changes in the

basis or rate of the fee or expenses shall also be communicated to the client.

easonable time after commencing the representation, except when the lawyer will charge a regularly

represented client on the same basis or rate. Contingent fee agreements must

be in writing and must comply with the provisions of the Rules Governing

Contingent Fees for Members of the Wyoming State Bar. Any changes in the

basis or rate of the fee or expenses shall also be communicated to the client.

(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 contingent fee agreement shall be in a writing

signed by the client 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. The agreement must

clearly notify the client of any expenses for which the client will be liable

whether or not the client is the prevailing 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 amount of

alimony or support, or property settlement in lieu thereof; or

(2) a contingent fee for representing a defendant in a criminal case.

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 amount 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 services performed by each lawyer

or each lawyer assumes joint responsibility for the representation;

(2) the client is informed of the arrangement, including the share each

lawyer will receive, and the agreement is confirmed in writing; and

(3) the total fee is reasonable.

Comment. — Reasonableness of Fee and Expenses. [1] 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.

Bases or Rate of Fee. [2] 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

that reasonably reflects the cost incurred by the lawyer.

Bases or Rate of Fee. [2] 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.

[3] 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. See the Rules Governing Contingent Fees for Members of

the Wyoming State Bar.

Terms of Payment. [4] 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)

State Bar.

Terms of Payment. [4] 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.

[5] 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. [6] 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. [7] 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

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. [7] 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 the

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.

[8] 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. [9] For procedural requirements governing fee disputes,

see Wyoming Rules for Fee Arbitration. In addition, 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

work done when lawyers were previously associated in a law

firm.

Disputes over Fees. [9] For procedural requirements governing fee disputes,

see Wyoming Rules for Fee Arbitration. In addition, 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.

Definitional Cross-References

“Confirmed in writing” See Rule 1.0(c)

“Firm” See Rule 1.0(d)

“Writing” and “Written” and “Signed” See Rule 1.0(o)