Gunn, Lee, & Cave, P.C. Terms of Engagement

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GUNN, LEE & CAVE, P.C.

TERMS OF ENGAGEMENT

1. Introduction.

This statement explains the general terms of your engagement of Gunn, Lee & Cave, P.C (the 

Firm). Unless otherwise stated in a signed writing, the Terms of Engagement set forth herein 

are binding on both you and the Firm. Your engagement of the Firm indicates your 

acceptance of these terms. Please keep this information for future reference.

2. Management of the Engagement.

You, as the client, have the right to be informed of the status of the Firm’s work for you. 

When your case is received, the Firm assigns a supervising attorney who is responsible for 

communicating with you. You can request a change of the supervising attorney at any time 

by contacting the Firm’s managing partner. To do a job well, the supervising attorney may 

assign various attorneys in the Firm to represent you. Work also may be delegated to the 

Firm’s paralegals or law clerks. All work assignments depend on several factors, including 

expertise, availability, and overall cost effectiveness. It is important to us that you 

understand the services being provided by the Firm. If questions arise, please discuss them 

with the supervising attorney as soon as possible.

3. Subsequent Matters.

The agreement reflected in these Terms of Engagement, and in any accompanying letter, 

applies to the Firm’s present representation and to any subsequent matters that the Firm 

agrees to undertake on your behalf.

4. Power of Attorney.

As part of this Agreement, you hereby authorize the Firm to execute all complaints, claims, 

verifications, dismissals, deposits and orders on your behalf.

5. Fees.

The Firm is committed to charging reasonable fees for its services. The following factors are 

taken into account when setting your fees:

- the time and labor required, the unusual nature and difficulty of the question 

involved, and the skill needed to perform the legal services properly;

- the fee customarily charged in this geographical area for similar legal services;

- the amount of money involved and the results obtained;

- the time limitations imposed by you or by the circumstances;

- the nature and length of the professional relationship with you;

- the experience, reputation, and ability of the attorney or attorneys performing the 

services;

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- the likelihood that acceptance of your engagement will preclude other client 

opportunities by the Firm; and

- the basis for the fee, meaning whether it is hourly, fixed, contingent, or a 

combination of these (e.g., an hourly rate plus a percentage of the recovery). The 

hourly rates of the Firm’s attorneys are based on their experience and are 

periodically modified by the Firm. If the fee is contingent, the degree of risk to 

the Firm is also considered.

6. Estimates Versus Fixed Fees.

Clients occasionally request advance estimates of fees. An estimate, although based on the 

attorney’s professional judgment, will often be affected by factors outside the control of the 

Firm and should not be considered a fixed rate or maximum fee. It is possible in certain 

situations to quote a fixed fee. In these instances, the Firm provides a letter stating the fixed 

fee and the specific services to be performed.

7. Contingent Fee Arrangement.

While rare, the Firm sometimes agrees to represent a client under a contingent fee 

arrangement. Such engagements must be approved in advance by the Firm’s managing 

partner and reflected in a signed agreement between the Firm and the client.

8. Expenses.

In addition to professional fees, an invoice includes charges for other services the Firm

provides or arranges, such as government fees, photocopy; delivery; long-distance telephone; 

facsimile transmission; travel; word processing; document management; computer-assisted 

legal research; investigation; court reporting; and witnesses, notary, and court fees. The Firm

periodically modifies its charges for these services. For unusually large expenses, you may 

be requested to pay in advance to the Firm or directly to the provider.

9. Retainer.

Clients without a payment history are usually requested to provide a retainer to the Firm. 

Any retainer or advance payment for services is deposited to a client trust account. Usually 

the Firm applies the retainer to the client’s final invoice and returns the remaining balance, if 

any, to the client. Paying a retainer does not relieve the client’s obligation to pay monthly 

invoices. If an invoice remains unpaid, the Firm reserves the right to apply the retainer to the 

unpaid balance and require an additional retainer before commencing further work.

10. Client Trust Account.

All trust deposits from clients (including retainers) are held in a client trust account. By 

court rule in Texas, funds deposited to a trust account are subject to IOLTA (Interest on 

Lawyer’s Trust Account) participation. IOLTA funds are used to support law-related 

charitable and educational activities. The only exception is when the deposit is large enough 

to earn interest in excess of bank and administrative costs. In these situations, the Firm opens 

an interest-bearing account, and interest is credited to the client until the deposit is applied.

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11. Insurance Coverage.

Even if your insurance coverage applies to the services to be performed by the Firm, primary 

responsibility for payment remains with you.

12. Billings.

The Firm submits an invoice to you on a monthly basis. The invoice contains a statement of 

the services performed and expenses incurred. At your request, additional information can 

be included on the invoice. We request payment within thirty (30) days following the date of 

the invoice. Please direct any questions regarding the invoice to the Firm’s office manager, 

the supervising attorney, or the Firm’s managing partner.

13. Interest on Past Due Accounts.

All amounts on your account remaining unpaid for more than thirty (30) days after invoicing 

accrue interest at 12% per annum.

14. Past Due Accounts.

If an account becomes more than ninety (90) days past due, legal work stops until the 

account is brought current. Any exception to this must be in writing and approved by the 

Firm’s managing partner. If a bill remains unpaid, the Firm may withdraw from further 

representation of the client.

15. Payment Notwithstanding Dispute.

In the event of any dispute that relates to the Firm’s entitlement to any payment from you, 

you shall pay all undisputed amounts. Any amounts in any client trust account held on your 

behalf sufficient to pay the disputed amounts shall continue to be held in such trust account 

until final disposition of the dispute.

16. Outcome.

The Firm does not and cannot guarantee any outcome in a matter.

17. Termination.

After providing written notice, you may end the Firm’s engagement at any time. Upon such 

action, all fees and expenses still owed before the termination are due to the Firm. When 

your account is paid, your papers and property will be returned promptly. You are 

responsible for any expenses in connection with the transfer of the matter to other counsel. 

Subject to the Rules of Professional Conduct, the Firm also may terminate the engagement. 

These rules permit or sometimes require withdrawal. Before this occurs, the Firm will 

provide you with written notice.

18. Grievances.

The State Bar of Texas investigates and prosecutes professional misconduct committed by 

Texas attorneys. Although not every complaint against or dispute with a lawyer involves 

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professional misconduct, the State Bar Office of General Counsel will provide you with 

information about how to file a complaint. For more information, please call 

1-800-932-1900. This is a toll-free telephone call.

19. Arbitration.

Any dispute between you and the Firm, or any of its employees, shall be resolved by 

confidential, binding arbitration in San Antonio, Texas, by and in accordance with the thencurrent rules of the American Arbitration Association. Judgment thereon may be entered in 

any court having jurisdiction. The prevailing party shall be entitled to reasonable attorney’s 

fees and costs.

20. Your Input.

The Firm’s foremost objective is to provide quality legal services. We recognize the 

importance of knowing how you feel about the services provided by our attorneys. Please 

feel free to discuss any aspect of the Firm’s services or charges with the supervising attorney, 

the office manager, or the managing partner.

Managing Partner: Ted D. Lee

Office Manager: Laura Keck

I have read and understand the foregoing Terms of Engagement.

ZroBlack, LLC

_____________________________

John Saenz, CEO

___________________________

Date

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