Certified Legal Professional (CLP) Practice Exam

Is an attorney subject to discipline for entering into a contingent fee agreement with a client in a divorce proceeding?

1. A) yes, because the attorney agreed to a fee contingent on the securing of a divorce

2. B) yes, because $100k was not a reasonable fee for the legal services rendered

3. C) no, because the client was happy with the attorney's legal services

4. D) no, because the client agreed in writing to the contingent-fee agreement

The correct answer is: A) yes, because the attorney agreed to a fee contingent on the securing of a divorce

The correct understanding hinges on the ethical standards and rules governing attorneys when it comes to fee arrangements, especially in divorce proceedings. In general, contingent fee agreements are permitted in many types of cases, but they are often prohibited or heavily restricted in domestic relations matters, such as divorce, due to concerns about conflicts of interest and the potential for the attorney's financial interests to interfere with the client's personal interests. In the context of divorce proceedings, a contingent fee agreement can raise ethical considerations because the attorney's success in collecting fees can be tied to the outcome of the case, which may not align with the best interests of the client. Therefore, an attorney who enters into such an arrangement can be subject to disciplinary action, as it indicates an improper incentive structure that is not in keeping with the principles of fiduciary responsibility and client welfare. Therefore, discipline could be warranted against the attorney primarily because entering into a contingent fee agreement in this context is often seen as inappropriate or unethical, indicating a fundamental misunderstanding of the role of an attorney in family law cases.