Page 313 - State Bar Directory 2023

SAMPLE FEE AGREEMENTS, INSTRUCTIONS & COMMENTS
DISCLAIMER
The State Bar of Montana makes no representations or warranties of any kind, express or implied, concerning the legal adequacy or enforceability of any of the accompanying forms or any part of them. Nothing in these “Instructions and Comments” or in the forms shall be interpreted or construed as such a representation or warranty. These “Instructions and Comments” and the forms are intended for use only by lawyers admitted to practice in Montana, who are expected to utilize their own independent legal and business judgment when evaluating the forms and these comments.
LIMITATIONS
The accompanying forms are samples only. They are not mandatory forms. They enjoy no preferred status. They create no minimum standards. They do not presume to address every setting in which the attorney-client relationship arises, nor do they contain every term a fee contract might include. By enumerating certain charges and billing practices, we do not suggest that you must or should adopt them. We simply acknowledge that some lawyers follow them.
We have varied the samples in content and style. The short forms are written in formal, contractual language, while the long forms are more colloquial. We have made no effort to tailor the samples to any particular specialty nor to cover every variation. Lawyers are encouraged to mold the samples to fit their needs.
FIXED FEE/NON-REFUNDABLE CONTRACTS
The issue of non-refundability raises the specter of an unconscionable fee. Lawyers should be aware that they may be required to refund all or part of the fixed fee, to avoid violating the prohibition against unconscionable fees.
Lawyers should take extreme care in defining what will and will not be done under the fixed fee agreement. Inattention to this point can result in a lawyer doing far more work than expected, all for a fixed fee.
If a lawyer withdraws before completing the contract, the client may be entitled to a refund because the fee retained would be unconscionable under Rule 1.5 of the Montana Rules of Professional Conduct.
ADDITIONAL PROVISIONS—INTEREST AND ARBITRATION
There are innumerable additional provisions that a lawyer can include in a fee agreement. For example, you may want to add clauses on arbitration and assessing interest on unpaid fees. An attorney may not charge interest for an unpaid fee without prior written agreement with the client.
ENGAGEMENT/DISENGAGEMENT LETTERS
A sample engagement letter is included below. It is also advised that attorneys conclude their representation of a client with a disengagement letter and effort to return the file and all original documents to the client.
Letterhead Date
Client Address Block
Re: Arrangements Concerning Legal Representation by this Firm
Dear ____________:
Thank you for asking _________ to (advise/represent) you regarding __________. Whenever we are engaged to provide legal services, we think it appropriate to put the terms of the engagement in writing. That is the purpose of this letter.
Engagement
We will provide legal services professionally and efficiently, consult with you concerning the goals of the representation, and keep you advised about the services provided and about actions taken by other parties or the courts that impact the representation. Of course, we cannot guarantee that you will be successful in achieving the goals of the representation.
Rates
Generally, our services are billed on an hourly basis. In this matter, my rate is $____ per hour. Other attorneys, legal professionals, or consultants may perform work for you, which will be billed to you at reasonable and appropriate hourly rates. Our hourly rates may be adjusted at the beginning of each calendar year. Occasionally, our fees will vary from strict hourly fees. For example, if we spend more time than seems reasonable on a particular task, or our advice results in wasted time or increased expenses for you, we may reduce the bill below our hourly rates. On the other hand, if we accomplish a particular task more efficiently because we have recently performed a similar task for another client, or if we obtain an especially favorable result, we may charge more than our standard hourly rate.
SAMPLE ENGAGEMENT LETTER
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