Legal Question in Business Law in California
Legal fees
Is it correct for a legal firm to charge the customer for drafting their legal services and retainer agreement for the customer?
4 Answers from Attorneys
Re: Legal fees
Sounds fishy to me.
Re: Legal fees
That's a tough call. I've never personally charged a client for doing that, but many firms do charge the time because it is part of the time an attorney spends on your case and is usually part of the initial consultation. In most cases, our time is the only thing we have to sell.
I volunteer as a fee arbitrator for the San Diego County Bar Associaton. I would have a tough time awarding someone fees for preparing a fee agreement, but each case is different and I would need to know more about the situation.
Re: Legal fees
I'm a volunteer fee arbitrator for the Orange County Bar and feel the way Mr. Starrett does. However, while it may not be good "form" and something that most attorneys would not charge a client for, I do not believe that it would be considered "illegal."
Re: Legal fees
This question involves aspects of both ordinary contract law and of professional ethics and tradition.
I would say that the more usual pre-agreement understanding between a professional of any kind and his or her client is that the proposal to furnish services will be furnished to the prospective client without expectation of payment. After all, the prospective client is free, at that stage, to look at the fee agreement and say, "No way, Jose!"
In unusual circumstances, for example where the client requested a highly unusual fee arrangement such as giving the attorney shares of stock in a corporation the attorney was to form and find the financing, I can see the client and attorney agreeing (tacitly or expressly) that writing the fee agreement was compensable time.
I haven't ever charged a client to write my fee agreement with him/her/it.
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