Legal Question in Employment Law in California

It is legal, but it may not be ethical or enforceable. If the client believes it is unfair, the client can demand fee arbitration through the county bar association in the county in which the attorney practices, or through the State Bar, to obtain a neutral determination of what fee the attorney is actually entitled to receive.

Yes, and you agreed to it.

Mr. Nelson is wrong on this one. Under the laws and rules governing attorney conduct, excessive fees are prohibited and can be ordered refunded, even if the client agreed. Whether a fee is excessive is determined in fee arbitration.

Attorneys cannot charge illegal or unconscionable fees, pursuant to Rule 4-200 of the California Rules of Professional Conduct. The fee in this case is definitely not "illegal." The rule also lists a number of factors that are to be considered in determining whether a fee is "unconscionable."

I tend to agree with Mr. McCormick that the court or arbitrator will look at this agreement carefully. I cannot go so far as to say that the agreement is "per se" unconscionable. However, a fee award is supposed to benefit the client in some way, and it is clear that there is no benefit to the client in a case where the attorney takes the entire fee award without any credit toward the fee the client owes.