Q: Are lawyers required to tell you their rate before you sign any agreement for representation?
A:
Yes, the rate is a required term.
Business and Professions Code Section 6148 governs non-contingent fee agreements. The agreement is required if the fees will exceed $1,000.
The agreement must state: (a) any basis for compensation including, but not limited to hourly rates, statutory or flat fees and other standard, rates and charges; (b) the general nature of the legal services to be provided; and (c) the responsibilities of attorney and client under the agreement. The attorney is required to provide a fully executed copy of the agreement to the client at the time the contract is signed.
Business and Professions Code Section 6147 governs contingent fee agreements. It contains the same requirements as the Non-Contingent fee agreements discussed in the section above, and the following additional requirements:
A statement of the contingency fee percentage amount.
A statement as to how disbursements and costs will affect the contingency fee and the client’s recovery.
A statement as to what extent, if any, the client could be required to pay any compensation to the attorney for related matters that arise out of their relationship not covered by their contingency fee agreement. This may include any amounts collected for the client by the attorney.
Unless the claim is subject to the provisions of Business and Professions Code Section 6146 (Claim Against Health Care Provider) a statement that the fee is not set by law but is negotiable between the attorney and client.
If the claim is subject to Section 6146, a statement that the rates set forth for that section are the maximum limits for the contingency fee and that the attorney and client may negotiate a lower rate.
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