Pro bono doesn’t mean that the client would not pay anything at all, it just means that the lawyer is not charging the client for the service he’s rendering. So the client would pay for filing fees and all other documents.

 

• A legal practitioner must be paid for work done
• Note that it is unprofessional to over/under charge see rule 48 (1-3)

 

Types of fees

• Contingent fees R 50
• Percentage fee
• Appearance fees
• Scale fees
• Fixed fee
• Hourly rate

 

Contingent fees – R 50

• Which areas of legal practice is it applicable
• Can only be used due to certain conditions. What are these? A lawyer has no right to impose a contingent fees, it must be done in accordance of the prescription of the law.

The contract should be reasonable in all circumstances of the case including the risk, not contrary to public policy. If the problem involves litigation then its evident that there’s a bonafide cause of action.

In the case that a matter is successful

Contingence fee arrangement or contract is Success based fee, so only if the LP is successful that he would be paid. The LP would only be paid upon the success of the matter.

 

• What is the ethical duty required of a lawyer desirous of applying the contingent fee principle?

 

• Retainer fee (General and special) rule 49
• Appearance fee – (an appearance for proceedings). This is a fee charged by lawyer for his appearance at court and everything that pertains to that e.g. transportation
• Hourly fee – not very common in the clime as a result of delays in courts; usually employed in solicitors work)
• Percentage fee – (some transactions that warrant that clients be charged on percentage –usually Conveyancing transaction)
• Fixed fee

 

How are LP fees determined?

 There are two issues a LP must consider before determining his fees?

1. Contentious – this are matters that involve litigation
2. Non - contentious

 

Contentious – no scale of charges provided:

Usually litigious and such related work

Note R 52(1) on commensurate work vis a vis fees earned. Who or what determines commensurate?

There is no proper template. However, R52(2)(a) provides an insight. Scale 3 is the relevant scale in this instance.

Considerations include:

• Value of the subject matter
• Time expended
• Novelty and difficulty of the issue involved of the matter
• Skill and labour
• Opportunity cost of accepting client’s case
• Customary charges at the bar – an idea
• Certainty of compensation
• Amount of money involved
• Accruement to the client
• Is the transaction a one-off or a constant i.e. retainership

 

For non-contentious

The fees shall be determined in accordance with the scales provided in the legal practitioners (remuneration for legal documentation and other land matters) order, 1991. These scales are fixed and stipulate the amount a LP can charge based on the transaction done. See scale I& II**

 

RECOVERY OF LEGAL PRACTITIONERS CHARGES

 

A legal Practitioner who has rendered his professional service ought to be paid except where the service rendered is pro bono in nature.

 

Recovery of professional fees

• 16(2) LPA makes the service of a bill of charges a condition precedent to the recovery of professional fees in court

 

Bill of charges: A bill of charges is a written statement by a Legal Practitioner to his client containing principal items of work done by the Legal Practitioner and specific amount of fees charged against those items by the Legal Practitioner.

 

Conditions that must be fulfilled for fees to be recovered

1. Draft a bill of charges
2. Serve the bill of charges
3. Wait for a period of one month to elapse
4. Bring an action to recover the charges

 

Essentials of a bill of charges

1. Principal items of work done by the legal practitioner;
2. It must be signed by the legal Practitioner;
3. It must be served on the client personally or left in his last known address;
4. Must be served for a period not less than one month before the commencement of an action in court.

 

Contents of a bill of charges

1. Principal items to be charged
2. Particulars of the principal items
3. Date on which the principal items were incurred
4. Signature of the legal practitioner issuing the bill on behalf of the firm.
5. Date on which it was issued
6. Matter to which it relates; and
7. Name of client to whom the bill is being issued.

RE A SOLICITOR (1955) 2 ALL ER 283; NATIONAL ELECTRIC POWER AUTHORITY V OYEKANMI (1992) 4 NWLR (PT. 237) 636

 

Sample draft of bill of charges

• Nature of Professional service:
• Name of Case:
• Details of work done
• Total:
• Date:
• Signature:

 

RETAINER

A Retainer agreement is of two types namely:

1. General Retainer;
2. Special Retainer.

The Legal Practitioner should avoid conflict of interest while carrying out his duties under a retainership agreement.

 

EXCEPTIONS.

A legal Practitioner can commence an action to recover his fees before the expiration of the one month period after the service of a bill of charges in if:

1. The Legal Practitioner has delivered his bill of charges to the client;
2. The bill of charges appear proper;
3. There are facts to prove that the client is about to do some acts to prevent or delay the payment of the bill.

 

Quantum meruit cases

• This occur where a legal practitioner though not directly briefed by the client renders some services which has benefitted the client. In such a case, the court may direct that the client pays the Legal Practitioner his Professional Fees.

 

Pro bono legal services

Pro bono legal service can be rendered to the following person:

1. Indigent clients
2. Friends
3. Family members
4. Clients with long standing relationship with the Legal Practitioner

 

 

Contentious work

Professional Fees charged by a Legal Practitioner carrying out contentious work must reflect the following.

1. Time and labour required to carry out the work;
2. Skill and expertise required to carry out the work;
3. Novelty of the case;
4. Difficulty of issues involved in the case;
5. Opportunities foregone.
6. Customary Charges of the Bar for similar services.
7. Contingency or certainty of the compensation.
8. The amount of money involved in the suit.
9. The benefit accruing to the client from the cause.

• The maximum or minimum fee chargeable by a Legal Practitioner cannot be fixed in a contentious matter as there is no statutory provision with respect to same.

 

Non-contentious work

Non contentious work that can be carried out by a legal practitioner include the following:

1. Drafting of instruments;
2. Rendering professional advice
3. Writing of letters;
4. Solicitors work in a general sense.

 

Non-contentious work carried out by a legal practitioner is governed by the provisions of:

1. Rules of Professional conduct;
2. Legal Practitioners (Remuneration for Legal Documentation and other land Matters) Order.

 

Scale of charges

• Scale 1: Remuneration of Legal Practitioners for sale of land and mortgage transactions;
• Scale 2: Remuneration of Legal Practitioners for Leases
• Scale 3: Other transactions not covered under Scales 1 and 2.

 

Scale 1

• A legal Practitioner representing both parties in a sale of land transaction is entitled to the full fees from both the vendor and the purchaser.
• In a mortgage transaction, a Legal Practitioner representing both parties is entitled to the full fees from the Mortgagee and Half fee from the Mortgagor.

 

Scale 2

• Where a legal Practitioner represents both the lessee and the lessor in the lease transaction, the legal practitioner is entitled to the full fees of the lessors legal practitioner and half of the fees of the lessees legal practitioner.

 

Scale 3

This deals basically with non-contentious legal work.

• Instances in which a legal Practitioner may charge under scale 3 are:

1. Where the services rendered is not provided for under scales 1 and 2;
2. Where he elects to charge under scale 3. He must serve a written notice of his intention to do so to his client.
3. Where the work done is not a contentious one.

When a legal Practitioner wants to charge using scale three, he must not charge exorbitantly.

 

Task based billing

This billing system is hinged primarily on the nature of work carried out by the legal practitioner.

 

 

Recovery of LP’s charges

 Bill of charges:

What is?

It is mandatory in the process of recovery of fees?

See OYEKANMI V NEPA (2000); FBN V NDOMA EGBA (2006) cfs16(2) LPA

 

Steps to ensure s 16(2)

 

Contents of the bill

• Heading – may include: nature of the work done, name of the case (where litigation) or name of transaction; name of client
• Body – s/n, date, particulars, amount charged
• Summation
• Account details
• Date – it must be dated and it must be signed
• Signature

 

1a) Recall the case of royal exchange limited and chief Lambe in the subject of civil litigation, it is assumed that the matter has finally come to an end. As a junior counsel in the office of Okumagba& co that handled the matter your principal chief Okumagba has directed that you prepare the bill of charges based on the work accrued out on behalf of your client chief Lambe. Prepare a bill of charges on behalf of your office with the assumption that the office is located in Lagos and the matter came up in Benin, Edo state.

1. b) Assuming Chief Lambe having lost in the matter that your law office is handling on his behalf is not responsive to the bill of charges you sent to him, what action can your office take to ensure it gets remunerated for the work carried out on his behalf.

 

Debate -  In charging of fees do you think the provision of rule 52(2) gives leeway for excessive charging of clients by LP particularly considering the provision of 52(1). Group 3 v 8. We are for 

 

Answer

 

OKUMAGBA & CO

12 DurosinmiEtti Street

Victoria Island, Lagos

08124569876, This email address is being protected from spambots. You need JavaScript enabled to view it.

 

OUR REF:                                                                                          YOUR REF:

 

23 March 2018

 

Chief Joseph Lambe,

15 Amber Crescent

Benin, Edo state

 

Dear Sir,

PROFESSIONAL FEES IN REPSECT OF ROYAL ESTATE LIMITED V CHIEF LAMBE SUIT NO: LS/324/5688

The above subject matter refers.

 

I Tinuade Oyewole write on behalf on Okumagba& Co and on instruction of Chief Okumagba to inform you of our professional fees after the conclusion of the case Royal Estate Limited v Chief Lambe, Suit no:LS/324/5688 before Justice Olowo at the Edo State High Court, Edo state.

Pleasesee below for the breakdown of our legal fees for your kind consideration.

 

Particulars of work done	Amount (Naira)	Amount (Kobo)
1)      Skill and Labour (taking into consideration length of the case) 2)      Transportation cost (incl. flight, accommodation as matter was out of residence) 3)      Professional disbursement (incl. court fees, witness fees, filing fees) 4)      Out of pocket expenses	500,000   125,000   95,000     25,000   Total	00   00   00     00
	745,000	00

ACCOUNT DETAILS

NAME: OKUMAGBA LAW

ACCOUNT NUMBER: 012334890

BANK: ZENITH BANK

 

Thank you for choosing Okumagba& Co to represent you.

 

Yours Faithfully,

Tinuade Oyewole

Junior Counsel

 

Table should be: Particulars of work done / amount .

b)

 

Revision

Draft bill of charges, serve bill of charges, wait for 1 month, then can institute proceedings. Can a legal practitioner recover his fees before the expiration of 1 month? Generally a legal practitioner ought to wait for the expiration of 1 month before proceeding to the state high court. However there are certain exceptions

Must start with the general rule, then go with the exceptions and link it to the exception

 

Is it every time that a bill of charges would be taxed?

Generally taxation doesn’t apply to every bill of charges. But taxation is an exception to the general rule.

 

Contingency fee

This is a fee that is based on the success or outcome of the case. Before this fee is applicable, a contingency agreement must be made. This must be executed by both parties, and it must have a particular arrangement. Learn to draft this agreement.

Contingency is based on %. Contingency fee is taxable.

Is this arrangement allowed in criminal matters

 

Percentage fee can be used for tax recovery.

 

 Fixed fee for land registration