Common use of HOURLY LITIGATION Clause in Contracts

HOURLY LITIGATION. 1. Conditions (Par. 1) and Effective Date (Par. 14) At the threshold, the attorney must determine at what point the agreement comes to life. Until it does, there is no written agreement that complies with the statute. Once it does, the attorney is obligated to render services, even if the client has not paid. If services are performed before the written agreement takes effect, the attorney will be limited to a "reasonable" fee. This form and the other samples embody one solution to these intertwined issues. It is not the only solution, nor will it always be the best solution. Par. 1 (Conditions) interacts closely with Par. 14 (Effective Date). Working together, the two clauses are designed to delay the attorney’s obligation to perform services until the client signs the agreement and pays the deposit; however, the clauses also are drafted to bring within the agreement any services performed before signing and payment. The delay in the attorney’s obligation to perform services is based on a cautious reading of the statute’s written agreement requirement. We assume that no written agreement exists until both parties sign and perform the conditions precedent. At the same time, however, we recognize that attorneys frequently will (or must) perform services before signing and payment; they will often do so under circumstances that will not fall within the statute’s exemptions for emergencies or impracticality. For that reason, "premature" services are brought under the agreement’s protection; upon signing and payment the agreement will take effect, but retroactively to the date the attorney first performed services. Without the retroactivity provision compensation for "premature" services would be limited to a reasonable fee, because the services were performed without a written agreement. Of course, if the agreement never takes effect, then the statutory penalty limits the attorney to the reasonable value of any services performed. If the attorney expects to perform services before the agreement is signed and the deposit paid, then the attorney should document the facts in a writing, preferably one signed by the client. Likewise, document reliance on any statutory exemptions, such as emergency or impracticality.

HOURLY LITIGATION. 1. Conditions (Par. 1) and Effective Date (Par. 14) At the threshold, the attorney must determine at what point the agreement comes to life. Until it does, there is no written agreement that complies with the statute. Once it does, the attorney is obligated to render services, even if the client has not been paid. If services are performed before the written agreement takes effect, the attorney will be limited to a "reasonable" fee. This form and the other samples embody one solution to these intertwined issues. It is not the only solution, nor will it always be the best solution. Par. 1 (Conditions) interacts closely with Parpar. 14 (Effective Date). Working together, the two clauses are designed to delay the attorney’s 's obligation to perform services until the client signs the agreement and pays the deposit; however, the clauses also are drafted to bring within the agreement any services performed before signing and payment. The delay in the attorney’s 's obligation to perform services is based on a cautious reading of the statute’s 's written agreement requirement. We assume that no written agreement exists until both parties sign and perform the conditions precedent. At the same time, however, we recognize that attorneys frequently will (or must) perform services before signing and payment; they will often do so under circumstances that will not fall within the statute’s 's exemptions for emergencies or impracticality. For that reason, "premature" services are brought under the agreement’s 's protection; upon signing and payment the agreement will take effect, but retroactively to the date the attorney first performed services. Without the retroactivity provision compensation for "premature" services would be limited to a reasonable fee, because the services were performed without a written agreement. Of course, if the agreement never takes effect, then the statutory penalty limits the attorney to the reasonable value of any services performed. If the attorney expects to perform services before the agreement is signed and the deposit paid, then the attorney should document the facts in a writing, preferably one signed by the client. Likewise, document reliance on any statutory exemptions, such as emergency or impracticality.