Legal Ethics Chapter 7

Front 1

Hourly rate

Back 1

Measured in fractions and based upon specific record-keeping. Hourly rates are higher for partners than Associates, and for senior paralegals than other paralegals and legal assistants.

Front 2

Blended rate

Back 2

An hourly rate that is the average of the higher and lower hourly rates at the firm.

Front 3

Contingency fee

Back 3

A percentage of the clients recovery. Is only valid if the outcome is unknown. Often associated with personal injury cases.

Front 4

Fixed fee

Back 4

Also known as a flat fee, or unit fee. Is based on all legal work needing to be done.

Front 5

Equity partner

Back 5

A partner in a law firm who is a shareholder, having voting rights.

Front 6

Pro bono

Back 6

Pro bono is short for the Latin phrase for the public good. When an attorney represent a client without charging a fee, that is a pro bono representation.

Front 7

Contingent fee

Back 7

A fee paid to a lawyer that is paid only if the lawyer succeeds in recovering a settlement or judgment for the client. The contingent fee is a percentage of what the client obtains.

Front 8

Reverse contingent fee

Back 8

A type of contingent fee Arrangement that involves the lawyer being paid a percentage of what the lawyer saves the client from losing, as opposed to a percentage of what the lawyer obtains for the client.

Front 9

Fixed fee

Back 9

A predetermined fee that covers all of the lawyers efforts and services rendered for a particular client matter. A fixed fee is distinguished from an hourly rate.

Front 10

ABA model rule 1.5 a

Back 10

Prohibits lawyers from charging, collecting, or making agreements for unreasonable fees, whereas the 8th 1983 version of Mr 1.58 stated a lawyer's fees shall be reasonable.

Front 11

Certificates of deposits CDs

Back 11

A type of conservative investment wearing someone gives money to a bank or other financial institution in exchange for promissory notes from the institutions detailing the interest to be paid on the money and the date on which the principal and interest will be paid to the investor.

Front 12

Legal treatise

Back 12

A form of secondary Authority, much like a legal textbook, but which is often accorded higher status because of its long-standing reputation in the legal community.

Front 13

Double billing

Back 13

A dishonest billing practice that involves billing to clients at the same time.

Front 14

Bill padding

Back 14

A dishonest billing practice that involves one exaggerating the time spent working on a client's case.

Front 15

Quantum Merit

Back 15

A Latin phrase that means as much as he deserved. Quantum Merit is an equitable principal used in contract cases by plaintiffs attempting to recover something for their efforts when courts have already determined that operative legal principles deny the validity of a contract.

Front 16

Fees

Back 16

These are one of the lawyers and paralegals time and efforts are worth. These can be hourly, contingent or fixed.

Front 17

Costs

Back 17

Costs are expenses associated with the representation. Cost could include expert witness fees, medical exams, and other Discovery expenses.

Front 18

Advance

Back 18

A prepayment for future Legal Services made to an attorney at the beginning of the representation. As the lawyer works on the case, the advanced is being earned.

Front 19

Public policy

Back 19

Generalized views about the American culture or ideals upon which specific laws are made.

Front 20

Retainer

Back 20

A payment made to secure lawyers availability. A general retainer can be non-refundable where it is allowed.

Front 21

Commingling

Back 21

The unlawful mixing of one person's money with another person's money in the same account.

Front 22

Conversion

Back 22

A torturous act that involves one exercising authority over another's property, to the deprivation, and without the permission, of the innocent party.

Front 23

Subrogation

Back 23

When someone who has made a payment on another's behalf has the legal or equitable right to be paid back from the party was originally liable for the payment. Subrogation often occurs when an insurance company pays its insured party under the terms of the insurance contract, and then is subrogated in the insured parties lawsuit against the defendant.

Front 24

Now account

Back 24

Negotiable order of withdrawal account. A now account is an account that allows the depositor to withdraw sums of money from the account at will. Now accounts are also called demand deposit accounts.

Front 25

Alimony

Back 25

Payments made by one spouse to another spouse, following a divorce, that are made to support the other spouse. Some states have eliminated alimony as a general requirement in divorce.

Front 26

401K plan

Back 26

An employee retirement plan authorized by 401 of the Internal Revenue code, sometimes called salary reduction plan. In a 401K plan, and employees pre-tax contributions are matched and some percentage by their employers contributions.

Front 27

Gross revenue

Back 27

Sometimes called gross income, this is the total revenue received before deductions, such as expenses.

Front 28

Promissory estoppel

Back 28

An exception to the requirement of consideration, which is a required element to a valid contract. Generally, promissory estoppel allows a party who relied on the promise of another party to recover what was promised, even though the relying party would be unable to recover under contract law.