Third Party Payer Fee Agreement

Parties who enter into these agreements often neglect or do not respect the ethical issues associated with them, particularly the potential for conflicts of interest that arise between the three parties involved. Legal fee payers undoubtedly have an interest in minimizing representation costs, whereas it may be in the client`s best interest to file applications and conduct thorough investigations, which inevitably increases trial costs. Similarly, a paying third party may monitor the progress of disputes and feel the need to dictate the terms of representation since it ends up paying the bill. But the payer must remember that he or she is not the customer. The ethical duties of a lawyer – the duty of representation, trust and confidentiality, solicitor-client privilege and the obligation to satisfy the client`s wishes – belong only to the client. The rules on professional conduct (PRC) expressly state that a lawyer must preserve professional independence and does not allow a third-party payer to interfere in the lawyer`s professional judgment or in the relationship between the lawyer and the client. See RPC 1.8 (f); RPC 5.4 (c). If the client pays for his own legal services, identifying the client is simple. However, if a third party pays a client`s lawyer`s bill and has a possible interest in the case, many lawyers forget that the payer is not their client. In this case, your client is the son, no matter who pays his legal fees.

Although the requirements are strict in the Grand Jury, there are ways for third-party payers to minimize the burden of endless payment obligations that could be related to an initial litigation financing agreement. First, because the payer in the in-court must show good reasons to stop paying fees, can be a way to prove such a good reason to prove that the trial costs exceeded the payer`s reasonable expectations. To this end, it would be wise for the payer to discuss the expenses with the lawyer in advance and to obtain estimated costs and a trial budget before signing a retainer. Indeed, it is desirable to include the estimated trial costs in conservation, as well as the scope and objectives of representation, all of which can contribute to creating a good reason to end representation, if it turns out that these objectives are not being met or that the budget is exceeded. Similarly, it may be possible to include certain provisions relating to the reserve provisions in the deductions, with the payer reserving the right, in certain circumstances, to withdraw or suspend legal fees, if necessary, in order to determine the good cause. The New Jersey Supreme Court in Der re State Grand Jury Investigation, 200 N.J. 481 (2009), explained the obligations, third-party payers, which were imposed on third-party payers of a client`s legal fees. A lawyer considering receiving payments from a third party should also check NHRPC 1.15.

Under NHRPC 1.15 (e), a lawyer is required to immediately notify a client or third party after receiving funds involving a client or a third party. In addition, under NHRPC 1.15 (e), a lawyer is also required to immediately provide the client or a third party with funds or other assets to which the client or a third party is entitled.

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