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FEE AGREEMENTS THAT WORK: EXAMPLES & SAMPLES MARK D. WHITE Sprouse Shrader Smith P.C. Amarillo, Texas 79101 (806) 468-3306 M

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FEE AGREEMENTS THAT WORK: EXAMPLES & SAMPLES MARK D. WHITE Sprouse Shrader Smith P.C. Amarillo, Texas 79101 (806) 468-3306 M FEE AGREEMENTS THAT WORK: EXAMPLES & SAMPLES MARK D. WHITE Sprouse Shrader Smith P.C. Amarillo, Texas 79101 (806) 468-3306 [email protected] (With a lot of help from Malerie Anderson, St. Mary’s School of Law 2013) State Bar of Texas 35th ANNUAL ADVANCED CIVIL TRIAL COURSE 2012 San Antonio – July 25-27 Dallas – August 22-24 Houston – October 17-19 CHAPTER 26 Mark D. White Managing Shareholder Sprouse Shrader Smith P.C. 806-468-3306 [email protected] PROFESSIONAL ACTIVITIES AND AWARDS Board Certified, Civil Trial Law – Texas Board Texas Tech University School of Law of Legal Specialization, since 1987 Foundation Board, 2010-present Texas Commission for Lawyer Discipline, 2002- Recipient of the Dan Rugeley Price Award, 2006; Chair, 2003-2006 2011 by Texas Bar Foundation Supreme Court Task Force on The Texas Recipient of Judge Sam Williams Award, 2007 Disciplinary Rules of Professional Conduct, by State Bar of Texas 2003-2006 State Bar of Texas Presidential Citation, June State Bar of Texas Standing Committee on 2004 Continuing Legal Education, 2007-present Basic Mediation Training, 40-hour course; The State Bar of Texas Task Force on Lawyer Dispute Resolution Training Institute/Texas Mental Health Issues, 2006 Tech University, 2009 Board of Directors, State Bar of Texas, 1999- Sustaining Life Fellow, Texas Bar Foundation; 2002; (Committee Chair, Facilities & Life Fellow, American Bar Foundation Equipment, 2001-2002; Committee Chair, Member: International Association of Defense Disciplinary/Disability Systems Oversight, Counsel, American Board of Trial Advocates, 2001-2002) Texas Association of Defense Counsel, Inc., Texas Board of Legal Specialization; Board Defense Research Institute, American Bar Member, 2011-present Association, and ABA Center for Professional Responsibility Amarillo Area Bar Association; President 2006 PUBLICATIONS AND PRESENTATIONS Attorney Fees & Sanctions Advanced Evidence and Discovery Course, Damages in Civil Litigation Course, State Bar of State Bar of Texas, 2011 Texas, 2012 Proposed Amendments to Texas Disciplinary Recovery of Attorney’s Fees Rules of Professional Conduct Advanced Civil Trial Course, State Bar of Texas, Advanced Personal Injury Law Course, 2011 State Bar of Texas, 2010 Course Director Accounting to the Client for the Icing on the Strategies for Damages and Attorney Fees Cake: Expert’s Fees, Attorney’s Fees, Sanction 2010, State Bar of Texas, February 2010 Fees, and Costs Damages in Civil Litigation Course, State Bar of Non-Refundable Retainers and Contingency Fee Texas, 2011 Contracts Evaluating, Negotiating, Proving and Nuances of Contingency Fee Contracts Collecting Damages and Attorneys’ Fees, Texas Association of Defense Counsel, Summer State Bar of Texas, February 2009 2011 Privileges Relating to Witnesses and Documents Revised July 9, 2012 PUBLICATIONS AND PRESENTATIONS, CONTINUED Non-Refundable Retainers: The Confusion The Car Crash Seminar, University of Texas Clarified at Last! School of Law, December 2005 State Bar of Texas Webcast, May 29, 2008 How the New State Bar Act Changes the Attorney Attorney Fees Disciplinary System in Texas Causes of Action Course, State Bar of Dallas Bar Association, September 2004 Texas, 2008 Condition or Use of Real Property Attorney – Client Relationships that Work Suing & Defending Governmental Entities The New Lawyers Course and Practice Course, State Bar of Texas, July 2004 Skills for New Lawyers, March 2007 and Volunteers and Liability Under the Texas Tort September 2008 Claims Act Understanding the Grievance Process Suing & Defending Governmental Entities Success Strategies for Mid-Career Lawyers, Course, State Bar of Texas, July 2002 State Bar of Texas, 2007 Course Director Tasers: Liability Issues Suing & Defending Governmental Entities Suing & Defending Governmental Entities Course, State Bar of Texas, July 2001 Course, State Bar of Texas, July 2006 How to Avoid an Encounter with the Texas Commission for Lawyer Discipline West Texas General Practice Symposium, Texas Tech School of Law, March 2006 Conflicts and Fee Problems in Tort Litigation EDUCATION B.B.A. in Finance, Texas Tech University, 1979; J.D., Texas Tech University School of Law, 1982 CIVIC ACTIVITIES Amarillo Symphony, Inc., Board of Directors, 2001-present; President 2008-2010 Southern Region, Boy Scouts of America, Board of Directors, 2000-present Golden Spread Council, Boy Scouts of America, Board of Directors, 1990-present; President, 1994-1996 Amarillo College Foundation, Board of Directors, 2009-present; Chair-elect 2011 Amarillo College – Capital Needs Assessment Committee, 2007 Lone Star Runners Club, President, 2008 Revised July 9, 2012 Fee Agreements That Work: Examples & Samples Chapter 26 TABLE OF CONTENTS I. INTRODUCTION ............................................................................................................................................. 1 II. WHAT ARE THE VARIOUS ROLES OF A LAWYER? ................................................................................ 1 III. THE ATTORNEY-CLIENT RELATIONSHIP ................................................................................................ 1 A. When does the relationship begin? .......................................................................................................... 1 B. How do we determine whether an agreement was reached with the client? ........................................... 1 C. What about consulting with “prospective clients”? ................................................................................. 1 D. Do lawyers have duties that extend beyond the agreement? ................................................................... 2 IV. FEE ARRANGEMENTS ................................................................................................................................... 2 A. Documenting the Attorney-Client Relationship or Agreement ............................................................... 2 B. Establishing the Fee Agreement at the Outset ......................................................................................... 2 C. Unreasonable Fee vs. Unconscionable Fee ............................................................................................. 2 D. Fee Contract vs. Fee Shifting .................................................................................................................. 2 V. WHAT SHOULD ENGAGEMENT LETTERS CONTAIN? ........................................................................... 3 A. Specific identification of who the client is. ............................................................................................. 3 B. Description of the specific objective or objectives of the representation. ............................................... 3 C. No guarantees. ......................................................................................................................................... 3 D. Limitations on the representation. ........................................................................................................... 3 E. Someone else pays the bill. ...................................................................................................................... 4 F. Clear description of the fee. ..................................................................................................................... 4 G. Monthly billing. ....................................................................................................................................... 6 H. Clause allowing increase. ........................................................................................................................ 6 I. Clear description about how expenses will be paid. ................................................................................ 6 J. Clear description about how disbursements will be billed. ..................................................................... 6 K. Disclosure about recovery of fees............................................................................................................ 7 L. Retainers, “non-refundable” retainers, and “deposits.” ........................................................................... 7 M. An arbitration clause? .............................................................................................................................. 8 VI. CONTINGENT FEES...................................................................................................................................... 11 A. Increase in percentage ........................................................................................................................... 11 B. Expenses ................................................................................................................................................ 11 C. Calculating the fee ................................................................................................................................. 11 D. Assignment of the cause of action ......................................................................................................... 12 VII. INCLUDE INFORMATION ON WHAT HAPPENS IN THE EVENT OF WITHDRAWAL OR TERMINATION .............................................................................................................................................. 12 VIII. ENCLOSE THE TEXAS LAWYER’S CREED ............................................................................................
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