Source: http://www.mccarthyfingar.com/publications/retainer-agreements-and-fee-disputes2.aspx
Timestamp: 2019-08-21 15:14:01
Document Index: 326144540

Matched Legal Cases: ['§137', 'art 137', 'art 137', '§137', 'art 137', '§137', '§137', '§137', 'art 1400']

Kathleen Donelli, White Plains Divorce Lawyer, Retainer Agreements
Home » Publications & Outlines » Kathleen Donelli, White Plains Divorce Lawyer, Retainer Agreements and Fee Disputes - 2-4-06
Wife ("W") and Patricia Partner ("P") signed a Retainer Agreement on December 10, 2004 (Exhibit A). By letter dated December 15, 2004, P notified W's husband ("H") that her firm had been retained to resolve Wife's matrimonial dispute with H and asked that H have his attorney contact P on or before January 6, 2005. On January 6, 2005, H called P and told her that he and W had reconciled. P immediately called W who told P that she was reconsidering her decision to get divorced. W told P she would call her in a few weeks. Wife received an invoice for legal fees dated February 15, 2005 (Exhibit B).
W did not call P again until June 15, 2005, when she told P that H had been arrested for pushing W out the front door of the marital residence. W was afraid that H would be furious when he returned from the police station. P explained to W that she had a court appearance on another matter scheduled in the afternoon but that her colleague, Ann ("A") could meet W at family court to obtain a temporary order of ___________
* Kathleen Donelli is a partner with McCarthy Fingar LLP and concentrates her practice in the areas of matrimonial law and commercial litigation. She is the Co-Chair of the Westchester County Bar Association's Grievance Committee, the immediate past President of the Westchester Women's Bar Association and a former President of the White Plains Bar Association.
protection, directing H to "stay away" from W and the marital residence. W agreed to meet A at family court that afternoon.
While in family court, W told A that H controlled all of their money and she was afraid that if she obtained a temporary order of protection directing H to "stay away" from W and the marital residence, H would stop paying the household bills. A told W that if W commenced a divorce action in Supreme Court, W immediately could seek an order directing H to maintain the parties' "financial status quo" pending the resolution of their divorce action.
After obtaining the temporary order of protection ("TOP") in family court on June 15, 2005, W and A returned to the law office and met with P for 3 hours, during which time they started drafting documents so W could obtain temporary support. A also arranged to have a process server serve the TOP upon the H at his job. On June 17, 2005, W returned to the office to sign her Statement of Net Worth and affidavit in support of her pendente lite motion.
On June 20, 2005, after A submitted the Order To Show Cause to the supreme court, W left a telephone message for P explaining that she and H had celebrated Father's Day together on June 19, 2005 and W had changed her mind about obtaining a divorce. When P returned W's call, P told W that she should wait a few days before making a decision to permit H back into the marital residence.
On June 21, 2005, H's attorney called A to discuss the family court case but did not tell A that W was considering a reconciliation. A drafted a Stipulation transferring the family court offense proceeding to the Supreme Court divorce action. When A called W to discuss her conversation with H's attorney, W angrily told A that the day before, W had notified P that she was reconciling with H and wanted to stop all of the court proceedings.
On June 22, 2005, W called P to discuss her legal fees and to confirm that she did not want to divorce her H.
After W received her July 10, 2005 billing statement (Exhibit B), she called P complaining about her legal fees and demanding the return of her $7,500 retainer. P told W that she would not refund the unbilled balance of W's retainer because $7,500 was a minimum fee.
During the fee dispute arbitration between W and the firm, the following issues were raised:
1. W refused to pay for the time charged on the family court offense proceeding because there was no retainer agreement.
2. W refused to pay P's hourly rate of $375 even though P had notified W in writing that as of March 1, 2005, her hourly rate would increase from $350 to $375.
3. Wife refused to pay for P's telephone call from H on January 6, 2005.
4. Wife claimed that P had promised her that the maximum cost for W's divorce would be $7,500.
5.a. Wife refused to pay A's expenses for traveling to family court.
b. Wife refused to send a payment directly to the process server for serving the TOP.
c. Wife refused to pay the expense for the family court transcript.
6. W claimed that P should refund her $7,500 because P did not send billing statements to W at least once every 60 days.
7. Could P have charged W interest on unpaid legal fees?
8. W refused to pay for her call to P complaining about her legal fees.
9. P claimed that her firm did not have to refund to Wife the unused balance of W's $7,500 retainer because it was a "minimum fee."
10. Assuming W had proceeded with her divorce action, would the firm be required to appeal the Supreme Court's decision denying W maintenance?
11. W refused to pay for A's time, claiming she retained P, not A.
12. Could the firm have stopped representing W in the family court proceeding if W refused to pay?
13. Could the firm seek a charging lien for Wife to pay her outstanding legal fees from her award of child support arrears?
14a. Does the firm have the right to compel W to arbitrate their fee dispute?
b. Does W or P have the right to seek a de novo trial after the arbitrator's award?
15. H files a grievance against P & A for lying when they included in the family court petition that H was in a drunken rage and violently pushed his W out of the front door of the marital residence. Can P submit W's affidavit supporting W's request for an order of protection?
EXHIBIT D FEE DISPUTE ARBITRATION:
Section 6.B.1 of the Board of Governors' Standards and Guidelines (the "Board's Standards") states that the client's consent must be knowing and informed. The client's consent under §137.2(b) shall be stated in a retainer agreement or other writing specifying that the client has read the official written instructions and procedures for the local program designated to hear fee disputes between the attorney and client, and that the client consents to resolve fee disputes under Part 137.
Attached to the Corrected Retainer Agreement (Exhibit C) is UCS 137-13(11/01) "Consent To Resolve Fee Disputes By Arbitration Pursuant To Part 137.2(b) of the Rules of the Chief Administrator."
The De Novo Review procedure is set forth in §137.8 (Exhibit D).
Attached to the Corrected Retainer (Exhibit D) is UCS 137-14(11/01) Form "Consent To Submit Fee Dispute To Arbitration Pursuant To Part 137.2(c) of the Rules of the Chief Administrator and to Waive Right To Trial De Novo."
EXHIBIT E WRITTEN LETTERS OF ENGAGEMENT IN CIVIL AND CRIMINAL MATTERS
· Under §137.1(b)(2), an attorney may make fee arbitration apply to disputed amounts less than $1,000 or more than $50,000 "if the parties have consented. ..." Without the client's consent, fee arbitration does not apply to sums less than $1,000 or more than $50,000.
· Under §137.2(b), Ex. A, an attorney may make fee arbitration mandatory for the client by obtaining the client's written consent in "a retainer agreement or other writing..." If not included in the retainer agreement, fee dispute arbitration commenced by a client is mandatory for the attorney but is not mandatory for the client if commenced by the attorney.
· Under §137.2(c), an attorney can make the arbitration award final, instead of subject to a de novo review, by obtaining the client's written consent.
EXHIBIT F RETAINER AGREEMENTS IN DOMESTIC RELATIONS MATTERS:
Part 1400 of the Joint Rules of the Appellate Division (22 NYCRR 1400)
FAILURE TO OBTAIN A RETAINER AGREEMENT IN DOMESTIC RELATIONS MATTERS BARS AN ATTORNEY FROM COLLECTING LEGAL FEES