when client breaches fee agreement can lawyer sue for higher fees

by Prof. Nathen Hessel 6 min read

When lawyers fail to adequately perform their work for clients, they can be liable for breach of the fee agreement. This claim will often allow the client to seek reimbursement of fees paid to the lawyer, a remedy which is generally not available in a legal malpractice case.

Full Answer

Are Attorney’s fees included in a breach of contract claim?

In Monster, LLC v. Superior Court of Los Angeles County, the court held that a jury must decide a claim for breach of contract alleging attorney’s fees as damages. Confusing? Let me explain.

Are Attorney’s fees considered damages in a lawsuit?

The court then recognized a long line of cases holding that, where attorney’s fees are sought as damages, the claim for attorney’s fees is part of the damage sought in the principal action.

Are Attorney’s fees enforceable?

A Jury Must Decide Often times, contracts contain attorney’s fee provisions. These terms allow the prevailing party in any action to enforce the contract to recover its attorney’s fees.

Who pays for the Attorney’s fees in a civil lawsuit?

This legal defense is only available if the plaintiff is seeking an equitable remedy, such as restitution. The general rule in most American states is that each party pays for their own attorney’s fees. However, there are a few exceptions which will be further discussed below.

Are lawyers liable for mistakes?

Even where an attorney made an obvious mistake, that mistake must have injured the client. The classic example of negligence is the attorney who did not file a lawsuit before the statute of limitations expired.

What should you not say to a lawyer?

Five things not to say to a lawyer (if you want them to take you..."The Judge is biased against me" Is it possible that the Judge is "biased" against you? ... "Everyone is out to get me" ... "It's the principle that counts" ... "I don't have the money to pay you" ... Waiting until after the fact.

What is the most common complaint against lawyers?

Perhaps the most common kinds of complaints against lawyers involve delay or neglect. This doesn't mean that occasionally you've had to wait for a phone call to be returned. It means there has been a pattern of the lawyer's failing to respond or to take action over a period of months.

Can lawyers lie to their clients?

The American Bar Association's Model Rules of Professional Conduct states that a lawyer “shall not knowingly make a false statement of material fact.” In other words, lawyers aren't supposed to lie--and they can be disciplined or even disbarred for doing so.

Lawsuit Costs

Although these costs are subject to change due to inflation, the following rates usually follow a lawsuit in Los Angeles, California:

Attorney's Fees for a Breach of Contract

According to section 1717 of the California Code of Civil Procedure, the winning individual of a breach of contract lawsuit can file a motion with the court and be awarded the attorney's fees.

How many legal malpractice cases are counterclaims?

According to the American Bar Association, an estimated 2/3 of all legal malpractice claims come about as counterclaims to suits for fees. Suddenly, the case is no longer about how much time you spent on the case multiplied by your hourly rate.

What happens if you don't follow the proper protocol?

If you have not followed the proper protocol, the court denying your application may be the least of your problems. It could also sanction you for your noncompliance, or require you to disgorge the fees you’ve already been paid. Tips for Fee Disputes.

How to avoid a problem with retainer?

Avoid the problem altogether by getting an appropriate retainer from the client, and have the client replenish the retainer as needed. If the client cannot afford your retainer, chances are she cannot afford your services. Bill at regular intervals. Waiting to bill until the completion of the matter can invite problems.

Do you have to disclose malpractice insurance?

Third, regardless of the merits of a malpractice claim, the fact that you have been sued for malpractice will likely have to be disclosed on your next malpractice insurance application. Guess what effect that could have on your rates?

David M. Kasell

In New York State regarding all divorce cases & Family Court matters, the lawyer is Required to execute, meaning sign, a retainer agreement with the client, even if the lawyer agrees to represent that client for free (pro bono).

Henry Lung

I don't have much to add to the other attorneys' answers, but your lawyer is supposed to keep you advised of all developments in any legal matter, and what work they did should be clearly set out in any invoice she sent you.

Gregory Allen Curry

Look at this link about fee arbitration: https://www.nycourts.gov/admin/feedispute/ You may need to come to N.Y. at some point if you want to pursue this to conclusion...

Terry David Horner

She is supposed to give you a retainer agreement. She also may have to offer you fee arbitration through the Office of Court Administration.

What happens when a party sues for breach of contract?

But what happens when a party sues for breach of the contract and the only element of damages the party claims are the attorney’s fees it incurred as a result ...

How to recover attorney fees?

Where the fees are sought by a prevailing party as an incident to the lawsuit, they will be recoverable via a post-judgment motion to the Court. Where, however, the fees are sought as damages for breach of the contract, those damages will become part ...

What was the summary judgment in favor of Beats on Monster's complaint?

The trial court entered summary judgment in favor of Beats on Monster’s complaint, agreeing that the fraud claims were released through the various agreements the parties had executed. Beats then argued that the attorney’s fees it sought as damages on the cross-complaint should be awarded by motion under Code of Civil Procedure section 1717. ...

Why did Monster file a writ against Beats?

In contrast, Monster argued that, because Beats was pursuing a cross-complaint for breach of a contract, a jury must decide whether Beats was entitled to attorney’s fees as damages for the breach. The trial court agreed with Beats and directed it to file a motion for fees under section 1717. Before Beats could do so, Monster filed a writ ...

Why did Monster and Lee sue Beats?

Monster and Lee wanted a slice of that pie, so they sued Beats, alleging that Beats had engaged in fraudulent scheme to divest them of their business interests in the Beats by Dre line. In defense, Beats argued that all of Monster’s and Lee’s claims were barred by the releases contained in the prior agreements.

Did Beats seek to recover attorney fees?

In doing so, the appellate court noted that “Beats did not seek to recover its attorney’s fees as the prevailing party on Monster’s fraud claims. Instead, Beats sought to recover those fees as damages on its cross-claims for breach of contract.”. The court then recognized a long line of cases holding that, where attorney’s fees are sought as ...

Did Beats and Monster get a termination agreement?

As a result, Beats exercised its termination rights on the licensing agreement with Monster. Beats and Monster then entered into a termination agreement allowing the latter continued manufacturing rights through 2012 and royalty rights through 2013. That termination agreement contained (1) a general waiver and release of all claims relating to ...