Question

Lueretained Attorney to appeal Lue's criminal conviction and to seek bail pending appeal. The agreed upon fee for the appearance on the bail hearing was $50 per hour. Attorney received $800 from Lue of which $300 was a deposit to secure Attorney's fee and $500 was for bail costs in the event that bail was obtained. Attorney maintained two office bank accounts: a "Fee Account," in which all fees were deposited and from which all office expenses were paid, and a "Clients' Fund Account." Attorney deposited the $800 in the "Clients' Fund Account" the week before the bail heating. Attorney expended six hours of time on the bail hearing. The effort to obtain bail was unsuccessful. Dissatisfied, Lue immediately demanded return of the $800. It is now proper for Attorney to:

Answer 1

Answer:

The attorney should write a check to Lue for $500 and leave the rest of the money ($800 - $500 = $300) in the Clients' Fund Account. He also has to explain Lue that his legal fees were $300 (= $50 per hour x 6 hours) and resolve that matter with him.

The client is responsible for paying his legal fees whether he wins or losses a case unless some other specific arrangement was made.