Legal Question in Legal Ethics in Illinois
Is it common practice for a lawyer to charge a client for the drafting of an engagement letter in ILLinois? I was billed for two and one half hours at a cost of close to $400 for reviewing my documents and the drafting of an engagement letter.
1 Answer from Attorneys
It is not a common practice. Rule 1.5 provides, in part
(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.
The trend in the profession is to prefer a contract over an engagement letter. No fee is charged for a form contract which is not particular to the individual case.