A Cyclist’s Perspective on Fee Agreements

As a cyclist, I truly understand the importance of a well-balanced wheel for ensuring a successful ride.  After completing my recent ride, I thought about the analogy between the smooth bike ride and a successful client engagement. The difference between my smooth rides and not-so-smooth rides can be the condition of the wheels – one loose or out of balance spoke can lead to a bumpy ride or even a ride ending crash. In comparison, the difference between a successful, profitable client engagement and one that is bumpy or ends in a crash can come down to having a well written and executed fee agreement. A fee agreement is a contract which outlines the terms of your business relationship.

There are many resources out there to help you design a fee agreement contract. Having reviewed and helped design a few, I believe incorporating these 8 key elements or spokes into your fee agreement will help you on your way to having a successful and profitable client engagement. As illustrated below, each spoke contributes to the success of the client/attorney engagement.

8 Key Spokes = Fee Agreement Elements:

 fee agreements

1.  Who is the client and what legal services are you providing. Are you representing the company or the individuals in the company? For a probate matter, there can be multiple parties. In this first section, be clear about who you are representing and for what.

2.  You’ve conducted a conflict check and documented the results based on your own internal procedures.  But how will you handle the situation of a conflict arising during representation? You have a duty to notify existing clients of a potential conflict. Spell it out here so the client understands. Great article: Conflict Checking Systems from A to Z by my friend Jim Calloway. Continue reading