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Question 1
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?
Correct Consideration of a client's wealth is not a factor that makes a high fee reasonable. See Model Rule 1.5(a). It would be reasonable to take into consideration the fact that a client is indigent in setting a fee, but that is clearly not a factor in Akeem's charge, here. Therefore, (a) is the best answer. It does not matter if every other lawyer charged Akeem the same amount, since the unreasonable practices of others does not make your practice reasonable. Therefore, choice (c) is incorrect. Choice (b) is not relevant on the issue of reasonableness.
Incorrect! Consideration of a client's wealth is not a factor that makes a high fee reasonable. See Model Rule 1.5(a). It would be reasonable to take into consideration the fact that a client is indigent in setting a fee, but that is clearly not a factor in Akeem's charge, here. Therefore, (a) is the best answer. It does not matter if every other lawyer charged Akeem the same amount, since the unreasonable practices of others does not make your practice reasonable. Therefore, choice (c) is incorrect. Choice (b) is not relevant on the issue of reasonableness.
Correct
Incorrect!
Correct
Incorrect!
Question 2
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 $1,500. 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?
Correct
Incorrect!
Correct
Incorrect!
Correct Provided legal fees are reasonable given the attorney's work and the skill and effort involved, an attorney will not be subject to discipline. It is irrelevant that a damage award constitutes a sum less than the attorney's fee, rendering choices (a) and (b) incorrect. Especially in civil rights cases, oftentimes victory is measured in the affirmation of a constitutional right and not in a money award. See City of Riverside v. Rivera, 477 U.S. 561 (1986). Therefore, choice (c) is the best answer.
Incorrect! Provided legal fees are reasonable given the attorney's work and the skill and effort involved, an attorney will not be subject to discipline. It is irrelevant that a damage award constitutes a sum less than the attorney's fee, rendering choices (a) and (b) incorrect. Especially in civil rights cases, oftentimes victory is measured in the affirmation of a constitutional right and not in a money award. See City of Riverside v. Rivera, 477 U.S. 561 (1986). Therefore, choice (c) is the best answer.
Question 3
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?
Correct
Incorrect!
Correct
Incorrect!
Correct Lawyers may not take divorce cases on contingent fees. See Model Rule 1.5(d)(1). The ethical rules prohibit such practices because it is not in the public interest to encourage divorce between married persons. Having a fee available like a 'pot of gold' would only encourage the lawyer to ensure the parties do in fact split up. Therefore, choice (c) is the best answer. Choice (a) is not the best answer, because just because your fee is in the millions does not mean it is unreasonable ' what counts is the amount of time, skill, and work you put into the case. Choice (b) is incorrect, not because 2% could not be a reasonable fee, but because you have the ethical issue of the contingent fee to contend with.
Incorrect! Lawyers may not take divorce cases on contingent fees. See Model Rule 1.5(d)(1). The ethical rules prohibit such practices because it is not in the public interest to encourage divorce between married persons. Having a fee available like a 'pot of gold' would only encourage the lawyer to ensure the parties do in fact split up. Therefore, choice (c) is the best answer. Choice (a) is not the best answer, because just because your fee is in the millions does not mean it is unreasonable ' what counts is the amount of time, skill, and work you put into the case. Choice (b) is incorrect, not because 2% could not be a reasonable fee, but because you have the ethical issue of the contingent fee to contend with.
Question 4
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?
Correct
Incorrect!
Correct According to Model Rule 1.5(c), contingent fee arrangements with clients must be in writing. Included must be information related to the means by which the fee will be calculated, plus information related to expenses which will be deducted from any recovery. Therefore, choice (b) is the best answer. Choice (a) is incorrect because it indicates that there was no ethical problem, though your failure to put the fee arrangement in writing constitutes a violation of the Model Rules. Choice (c) is not relevant to whether or not there is a writing that memorializes the fee arrangement.
Incorrect! According to Model Rule 1.5(c), contingent fee arrangements with clients must be in writing. Included must be information related to the means by which the fee will be calculated, plus information related to expenses which will be deducted from any recovery. Therefore, choice (b) is the best answer. Choice (a) is incorrect because it indicates that there was no ethical problem, though your failure to put the fee arrangement in writing constitutes a violation of the Model Rules. Choice (c) is not relevant to whether or not there is a writing that memorializes the fee arrangement.
Correct
Incorrect!
Question 5
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?
Correct Legislative-approved ceilings on lawyer fees for certain types of cases will usually not be adjudged in violation of the antitrust laws.Typically, for cases involving worker's compensation, social security, and representing indigents, legislatures have set fee ceilings. However, voluntarily fixing a ceiling on personal injury cases, absent legislative approval, will leave you and your associates exposed to litigation for violating '1 of the federal Sherman Antitrust Act. Therefore, choice (a) is the correct answer. Choice (c) is irrelevant for purposes of the antitrust laws. Choice (b) is incorrect, because the ceiling is the result of an illegal price-fixing agreement.
Incorrect! Legislative-approved ceilings on lawyer fees for certain types of cases will usually not be adjudged in violation of the antitrust laws.Typically, for cases involving worker's compensation, social security, and representing indigents, legislatures have set fee ceilings. However, voluntarily fixing a ceiling on personal injury cases, absent legislative approval, will leave you and your associates exposed to litigation for violating '1 of the federal Sherman Antitrust Act. Therefore, choice (a) is the correct answer. Choice (c) is irrelevant for purposes of the antitrust laws. Choice (b) is incorrect, because the ceiling is the result of an illegal price-fixing agreement.
Correct
Incorrect!
Correct
Incorrect!
Question 6
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?
Correct
Incorrect!
Correct Fee splitting involving attorneys who agree to perform an amount of work proportionate to the fee they will earn is perfectly ethical. Therefore, choice (b) is the correct answer. Here, you agreed to share 50% of the work and fees with another lawyer, and obtained the requisite client approval in writing. On the facts, there do not appear to be any ethical problems. Choice (a) is incorrect, because lack of experience does not disqualify you from the case. On the contrary, seeking outside help, with your client's approval, would be reasonable. There is no evidence on the facts to support the allegation in choice (c).
Incorrect! Fee splitting involving attorneys who agree to perform an amount of work proportionate to the fee they will earn is perfectly ethical. Therefore, choice (b) is the correct answer. Here, you agreed to share 50% of the work and fees with another lawyer, and obtained the requisite client approval in writing. On the facts, there do not appear to be any ethical problems. Choice (a) is incorrect, because lack of experience does not disqualify you from the case. On the contrary, seeking outside help, with your client's approval, would be reasonable. There is no evidence on the facts to support the allegation in choice (c).