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 There is no need to enter into an agreement whose terms could lead the lawyer to reduce the client`s services or to perform them in a manner contrary to the client`s interest. For example, a lawyer should not enter into an agreement that services should only be provided up to a reported amount, unless the situation is adequately explained to the client. Otherwise, the client may be required to negotiate additional support in the middle of a process or transaction. However, the scope of services should be defined in light of the customer`s ability to pay. A lawyer should not use a royalty system based primarily on hours costs through wasted procedures. Rule 1.5 (3) is a new provision that submits the signature of the final declaration under Rule 1.5 point c) (2) by the client and all lawyers who do not work in the same firm and who participate in the fees, unless the allocation of royalties is authorized by the courts. Rule 1.5 (e) (4) is an amendment to DR 2-107 (A) (3) with respect to the requirement that the total tax be reasonable. c) A tax may depend on the outcome of the case for which the service is provided, unless a possible tax is prohibited by paragraph d or other laws. A conditional royalty agreement is written in a letter signed by the client and defines the method by which the fee must be determined, including the percentage or percentages owed to counsel in the event of a transaction, lawsuit or claim; Litigation and other expenses that are deducted from recovery; and whether these fees should be deducted before or after the calculation of the contingency tax.
The contract must clearly inform the customer of all costs for which the customer is responsible, whether or not the customer is the dominant party. Following a question of possible fee, the lawyer presents the client with a written statement containing the outcome of the case and, if recovery, referral to the client and the method of his disposition. Rule 1.5 (e) deals with the allocation of fees between lawyers who do not work in the same firm. Rule 1.5 (e) (1) (1) confirms the provisions of LA DR 2-107 (A) (1) with the additional requirement that, if the allocation of royalties is made on the basis of co-responsibility, any lawyer must be available for consultation with the client. Rule 1.5 (e) (2) (2) specifies DRE 2-107 (A) (2) and the 2003-3 Advisory Notice of the Committee of Commissioners on Complaints and Discipline regarding matters that must be communicated in writing to the client.  Conditional royalties, like all other royalties, are subject to the adequacy standard of paragraph (a) of this rule.