(a)
A lawyer's fee shall be reasonable.
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.
(b)
When the lawyer has not regularly represented the client,
The scope of the representation and the basis
or rate of the fee and expenses for which the client
will be responsible shall be communicated to the client
before or within a reasonable time after commencing the
representation.
(c) A fee may be contingent on the outcome of the matter for which the service is rendered, except in a matter in which a contingent fee is prohibited by paragraph (d) or other law. A contingent fee agreement shall be in writing signed by the client and shall state the method by which the fee is to be determined, including the percentage or percentages that shall accrue to the lawyer in the event of settlement, trial or appeal, litigation and other expenses to be deducted from the recovery, and whether such expenses are to be deducted before or after the contingent fee is calculated. The agreement must clearly notify the client of any expenses for which the client will be liable whether or not the client is the prevailing party. Upon conclusion of a contingent fee matter, the lawyer shall provide the client with a written statement stating the outcome of the matter and, if there is a recovery, showing the remittance to the client and the method of its determination.
(d) A lawyer shall not enter into an arrangement for, charge, or collect:
(1)
any fee in a domestic relations matter, the payment or amount of which is
contingent upon the securing of a dissolution of marriage
divorce or upon the amount of
maintenance
alimony or support, or property settlement in lieu thereof;
provided, however, that the prohibition set forth in Rule 1.5(d)(1) shall
not extend to representation in matters subsequent to final judgments in
such cases;
(2) a contingent fee for representing a defendant in a criminal case.
(e)
Notwithstanding Rule 1.5(c), a contingent fee agreement
regarding the collection of commercial accounts or of insurance company
subrogation claims may be made in accordance with the customs and practice
in the locality for such legal services.
(e) A division of a fee between lawyers who are not in the same firm may be made only if:
(1) the division is in proportion to the services performed by each lawyer or, where the primary service performed by one lawyer is the referral of the client to another lawyer, each lawyer assumes joint financial responsibility for the representation;
(2) the client agrees to the arrangement, including the share each lawyer will receive, and the agreement is confirmed in writing; and
(3) the total fee is reasonable.
(f) Except as provided in Rule 1.5(j), a lawyer shall not divide
a fee for legal services with another lawyer who is not in the same firm,
unless the client consents to employment of the other lawyer by signing a
writing which discloses:
(1) that division of fees will be made;
(2) the basis upon which the division will be made, including the economic
benefit to be received by the other lawyer as a result of the division; and
(3) the responsibility to be assumed by the other lawyer for performance
of the legal services in question.
(g) A division of fees shall be made in proportion to the
services performed and responsibility assumed by each lawyer, except where
the primary service performed by one lawyer is the referral of the client to
another lawyer and
(1) the receiving lawyer discloses that the referring lawyer has received
or will receive economic benefit from the referral and the extent and basis
of such economic benefit, and
(2) the referring lawyer agrees to assume the same legal responsibility
for the performance of the services in question as would a partner of the
receiving lawyer.
(h) The total fee of the lawyers shall be reasonable.
(i) For purposes of Rule 1.5 "economic benefit" shall include:
(1) the amount of participation in the fee received with regard to the
particular matter;
(2) any other form of remuneration passing to the referring lawyer from
the receiving lawyer, whether or not with regard to the particular matter;
and
(3) an established practice of referrals to and from or from and to the
receiving lawyer and the referring lawyer.
(j) Notwithstanding Rule 1.5(f), a payment may be made to a
lawyer formerly in the firm, pursuant to a separation or retirement
agreement.