MPRE FEES EXAM QUESTIONS WITH
CORRECT ANSWERS
What is the number one requirement for fees? - Answer-The attorney's fees MUST be
reasonable.
What is the Lodestar test? - Answer-A factor test to determine the reasonableness of
rates
What are the factors of the Lodestar test? - Answer-1. Time -- fee cannot be changed
afterward
2. Novelty -- new to lawyer; new to everyone
3. Amount in controversy (more risk = more reward)
4. Precluding employment
What is the general rule for forming a fee agreement? - Answer-A fee agreement DOES
NOT need to be in writing, the fees just have to be COMMUNICATED.
What are the rules for a contingency agreement? - Answer-1. Contingency agreements
MUST be in writing,
2. ALWAYS must be signed by client, and
3. MUST have a method of calculation
What are the rules limiting contingency fees? - Answer-CANNOT be used in criminal or
family law cases
What is the number one rule for retainer fees? - Answer-The lawyer MUST keep the
client's money separate from their own
What are the requirements that the lawyer must do for retainer fees? - Answer-1. All
unearned fees must be placed in escrow/trust fund account
2. Unearned fees MUST be returned
3. ALL costs advanced to the lawyer MUST ALSO be placed in escrow.
4. Account of the lawyer and client must be SEPARATE
What can occur with an interest in client as a fee? - Answer-It can create a conflict of
interest
What are the requirements for doing business transactions with clients? - Answer-1.
Terms MUST be in writing,
2. Terms must be FAIR and reasonable
3. Attorney must advise the client, IN WRITING, of the prudence of hiring independent
counsel to review the agreement, and
4. Client must give INFORMED CONSENT in writing
CORRECT ANSWERS
What is the number one requirement for fees? - Answer-The attorney's fees MUST be
reasonable.
What is the Lodestar test? - Answer-A factor test to determine the reasonableness of
rates
What are the factors of the Lodestar test? - Answer-1. Time -- fee cannot be changed
afterward
2. Novelty -- new to lawyer; new to everyone
3. Amount in controversy (more risk = more reward)
4. Precluding employment
What is the general rule for forming a fee agreement? - Answer-A fee agreement DOES
NOT need to be in writing, the fees just have to be COMMUNICATED.
What are the rules for a contingency agreement? - Answer-1. Contingency agreements
MUST be in writing,
2. ALWAYS must be signed by client, and
3. MUST have a method of calculation
What are the rules limiting contingency fees? - Answer-CANNOT be used in criminal or
family law cases
What is the number one rule for retainer fees? - Answer-The lawyer MUST keep the
client's money separate from their own
What are the requirements that the lawyer must do for retainer fees? - Answer-1. All
unearned fees must be placed in escrow/trust fund account
2. Unearned fees MUST be returned
3. ALL costs advanced to the lawyer MUST ALSO be placed in escrow.
4. Account of the lawyer and client must be SEPARATE
What can occur with an interest in client as a fee? - Answer-It can create a conflict of
interest
What are the requirements for doing business transactions with clients? - Answer-1.
Terms MUST be in writing,
2. Terms must be FAIR and reasonable
3. Attorney must advise the client, IN WRITING, of the prudence of hiring independent
counsel to review the agreement, and
4. Client must give INFORMED CONSENT in writing
