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Fees and Fee Disputes
The nature
and amount of attorney fees is normally a subject for contractual
agreement between attorney and client. In the event there is
a fee dispute with a client, options for seeking compensation
from a client are limited to the use of liens, litigation arbitration
or mediation. If the fee dispute goes to court, the attorney
can count on the jury favoring the client as to the size of
the fees. Courts impose strict burdens upon the attorney to
prove that the attorney fees were reasonable, necessary and
fair.
It is best to lay a foundation to prevent fee disputes. This
foundation would include agreeing to the fee terms early in
discussions with the prospective client, putting the fee arrangement
in a writing (acknowledged and endorsed by the client), charging
reasonable fees, sending regular bills over the course of representation,
and maintaining open and regular communications with the client
(including updates to the status of his/her case).
The reasonableness of fees is one area in which the attorney
can be sanctioned. The factors used to determine reasonableness
of fees are many and items that may be billed to the client
are limited. Particular scrutiny is given to contingency fee
scenarios. A contingency fee arrangement must clearly explain
how the fee is to be calculated, what expenses are to be deducted
from the award and whether the expenses are deducted before
or after the contingent fee is calculated. Unlike some states,
Virginia does not statutorily limit the contingent fee percentage
a lawyer may charge in personal injury, medical malpractice
and similar type cases. Contingent fees are strictly prohibited
in criminal cases and domestic relations cases, although a contingent
fee arrangement is permitted when the matter is one of collecting
alimony or child support payments decided by a prior court ruling.
Another area of fees that are closely regulated under the ABA
Model Rules and the Virginia Rules involves fee splitting with
other lawyers and/or forwarding or referral fees.
Our attorneys are experienced in determining proper retainer
or contingency fee arrangements, evaluating the reasonableness
of fees, and counseling law firm clients on separation and retirement
agreements of law firms in light of future fee splitting issues.
We also are experienced in pursuing available remedies for attorneys
facing fee disputes. We have defended attorneys against charges
of unfair fees.
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