Rule 4-1.5 — Fees and Costs for Legal Services

Rule Text (verbatim from The Florida Bar)

(a) Illegal, Prohibited, or Clearly Excessive Fees and Costs.
A lawyer must not enter into an agreement for, charge, or collect an
illegal, prohibited, or clearly excessive fee or cost, or a fee generated
by employment that was obtained through advertising or
solicitation not in compliance with the Rules Regulating The Florida
Bar. A fee or cost is clearly excessive when:
(1) after a review of the facts, a lawyer of ordinary
prudence would be left with a definite and firm conviction that the
fee or the cost exceeds a reasonable fee or cost for services provided
to such a degree as to constitute clear overreaching or an
unconscionable demand by the lawyer; or
(2) the fee or cost is sought or secured by the lawyer by
means of intentional misrepresentation or fraud upon the client, a
nonclient party, or any court, as to either entitlement to, or amount
of, the fee.

(b) Factors to Be Considered in Determining Reasonable
Fees and Costs.
(1) Factors to be considered as guides in determining a
reasonable fee include:
(A) the time and labor required, the novelty,
complexity, difficulty of the questions involved, and the skill
requisite to perform the legal service properly;
(B) the likelihood that the acceptance of the
particular employment will preclude other employment by the
lawyer;
(C) the fee, or rate of fee, customarily charged in
the locality for legal services of a comparable or similar nature;
(D) the significance of, or amount involved in, the
subject matter of the representation, the responsibility involved in
the representation, and the results obtained;
(E) the time limitations imposed by the client or by
the circumstances and, as between attorney and client, any
additional or special time demands or requests of the attorney by
the client;
(F) the nature and length of the professional
relationship with the client;
(G) the experience, reputation, diligence, and ability
of the lawyer or lawyers performing the service and the skill,
expertise, or efficiency of effort reflected in the actual providing of
such services; and
(H) whether the fee is fixed or contingent, and, if
fixed as to amount or rate, then whether the client’s ability to pay
rested to any significant degree on the outcome of the
representation.
(2) Factors to be considered as guides in determining
reasonable costs include:

(A) the nature and extent of the disclosure made to
the client about the costs;
(B) whether a specific agreement exists between the
lawyer and client as to the costs a client is expected to pay and how
a cost is calculated that is charged to a client;
(C) the actual amount charged by third party
providers of services to the attorney;
(D) whether specific costs can be identified and
allocated to an individual client or a reasonable basis exists to
estimate the costs charged;
(E) the reasonable charges for providing in-house
service to a client if the cost is an in-house charge for services; and
(F) the relationship and past course of conduct
between the lawyer and the client.
All costs are subject to the test of reasonableness set
forth in subdivision (a) above. When the parties have a written
contract in which the method is established for charging costs, the
costs charged under that contract will be presumed reasonable.
(c) Consideration of All Factors. In determining a
reasonable fee, the time devoted to the representation and
customary rate of fee need not be the sole or controlling factors. All
factors set forth in this rule should be considered, and may be
applied, in justification of a fee higher or lower than that which
would result from application of only the time and rate factors.
(d) Enforceability of Fee Contracts. Contracts or
agreements for attorney’s fees between attorney and client will
ordinarily be enforceable according to the terms of such contracts
or agreements, unless found to be illegal, obtained through
advertising or solicitation not in compliance with the Rules
Regulating The Florida Bar, prohibited by this rule, or clearly
excessive as defined by this rule.

(e) Duty to Communicate Basis or Rate of Fee or Costs to
Client and Definitions.
(1) Duty to Communicate. When the lawyer has not
regularly represented the client, the basis or rate of the fee and
costs must be communicated to the client, preferably in writing,
before or within a reasonable time after commencing the
representation. A fee for legal services that is nonrefundable in any
part must be confirmed in writing and must explain the intent of
the parties as to the nature and amount of the nonrefundable fee.
The test of reasonableness found in subdivision (b), above, applies
to all fees for legal services without regard to their characterization
by the parties.
The fact that a contract may not be in accord with these
rules is an issue between the lawyer and client and a matter of
professional ethics, but is not the proper basis for an action or
defense by an opposing party when fee-shifting litigation is involved.
(2) Definitions.
(A) Retainer. A retainer is a sum of money paid to a
lawyer to guarantee the lawyer’s future availability. A retainer is
not payment for past legal services and is not payment for future
services.
(B) Flat Fee. A flat fee is a sum of money paid to a
lawyer for all legal services to be provided in the representation. A
flat fee may be termed “non-refundable.”
(C) Advance Fee. An advanced fee is a sum of
money paid to the lawyer against which the lawyer will bill the
client as legal services are provided.
(f) Contingent Fees. As to contingent fees:
(1) A fee may be contingent on the outcome of the matter
for which the service is rendered, except in a matter in which a
contingent fee is prohibited by subdivision (f)(3) or by law. A
contingent fee agreement must be in writing and must state the
method by which the fee is to be determined, including the

percentage or percentages that will accrue to the lawyer in the event
of settlement, trial, or appeal. The agreement must also state the
costs to be deducted from the recovery and whether those costs are
to be deducted before or after the contingent fee is calculated. On
conclusion of a contingent fee matter, the lawyer must provide the
client with a written statement describing the outcome of the matter
and, if there is a recovery, showing the remittance to the client and
the method of its determination. This written statement must
include an itemization of costs, fees of each lawyer or law firm
participating in the fee, and payments to third parties to be paid
from the recovery.
(2) Every lawyer who accepts a retainer or enters into an
agreement, express or implied, for compensation for services
rendered or to be rendered in any action, claim, or proceeding in
which the lawyer’s compensation is to be dependent or contingent
in whole or in part on the successful prosecution or settlement
must do so only where the fee arrangement is reduced to a written
contract, signed by the client, and by a lawyer for the lawyer or for
the law firm representing the client. No lawyer or firm may
participate in the fee without the consent of the client in writing.
Each participating lawyer or law firm must sign the contract with
the client and must agree to assume joint legal responsibility to the
client for the performance of the services in question as if each were
partners of the other lawyer or law firm involved. The client must
be furnished with a copy of the signed contract and any subsequent
notices or consents. All provisions of this rule will apply to such fee
contracts.
(3) A lawyer must not enter into an arrangement for,
charge, or collect:
(A) any fee in a domestic relations matter, the
payment or amount of which is contingent on the securing of a
divorce or on the amount of alimony or support, or property
settlement in lieu thereof; or
(B) a contingent fee for representing a defendant in
a criminal case.

(4) A lawyer who enters into an arrangement for,
charges, or collects any fee in an action or claim for personal injury
or for property damages or for death or loss of services resulting
from personal injuries based on tortious conduct of another,
including products liability claims, in which the compensation is to
be dependent or contingent in whole or in part on the successful
prosecution or settlement must do so only under the following
requirements:
(A) The contract must contain the following
provisions:
(i) “The undersigned client has, before signing
this contract, received and read the statement of client’s rights and
understands each of the rights set forth in it. The undersigned
client has signed the statement and received a signed copy to refer
to while being represented by the undersigned lawyer(s).”
(ii) “This contract may be cancelled by written
notification to the lawyer at any time within 3 business days of the
date the contract was signed, as shown below, and if cancelled the
client is not obligated to pay any fees to the attorney for the work
performed during that time. If the lawyer has advanced funds to
others in representation of the client, the lawyer is entitled to be
reimbursed for amounts that the lawyer has reasonably advanced
on behalf of the client.”
(B) The contract for representation of a client in a
matter set forth in subdivision (f)(4) may provide for a contingent fee
arrangement as agreed on by the client and the lawyer, except as
limited by the following provisions:
(i) Without prior court approval as specified
below, any contingent fee that exceeds the following standards are
presumed, unless rebutted, to be clearly excessive:
a. Before the filing of an answer or the
demand for appointment of arbitrators or, if no answer is filed or no
demand for appointment of arbitrators is made, the expiration of
the time period provided for such action:

1. 33 1/3% of any recovery up to $1
million; plus
2. 30% of any portion of the
recovery between $1 million and $2 million; plus
3. 20% of any portion of the
recovery exceeding $2 million.
b. After the filing of an answer or the
demand for appointment of arbitrators or, if no answer is filed or no
demand for appointment of arbitrators is made, the expiration of
the time period provided for such action, through the entry of
judgment:
1. 40% of any recovery up to $1
million; plus
2. 30% of any portion of the
recovery between $1 million and $2 million; plus
3. 20% of any portion of the
recovery exceeding $2 million.
c. If all defendants admit liability at the
time of filing their answers and request a trial only on damages:
1. 33 1/3% of any recovery up to $1
million; plus
2. 20% of any portion of the
recovery between $1 million and $2 million; plus
3. 15% of any portion of the
recovery exceeding $2 million.
d. An additional 5% of any recovery after
institution of any appellate proceeding or postjudgment relief or
action is required for recovery on the judgment.
(ii) If any client is unable to obtain a lawyer of
the client’s choice because of the limitations set forth in subdivision

(f)(4)(B)(i), the client may petition the court in which the matter
would be filed, if litigation is necessary, or if that court will not
accept jurisdiction for the fee approval, the circuit court in which
the cause of action arose, for approval of any fee contract between
the client and a lawyer of the client’s choosing. Authorization will
be given if the court determines the client has a complete
understanding of the client’s rights and the terms of the proposed
contract. The application for authorization of the contract can be
filed as a separate proceeding before suit or simultaneously with the
filing of a complaint. Proceedings on the petition may occur before
service on the defendant and this aspect of the file may be sealed.
A petition under this subdivision must contain a certificate showing
service on the client and, if the petition is denied, a copy of the
petition and order denying the petition must be served on The
Florida Bar in Tallahassee by the member of the bar who filed the
petition. Authorization of such a contract does not bar subsequent
inquiry as to whether the fee actually claimed or charged is clearly
excessive under subdivisions (a) and (b).
(iii) Subject to the provisions of 4-1.5(f)(4)(B)(i)
and (ii), a lawyer who enters into an arrangement for, charges, or
collects any fee in an action or claim for medical liability in which
the compensation is dependent or contingent in whole or in part on
the successful prosecution or settlement must provide the language
of article I, section 26 of the Florida Constitution to the client in
writing and must orally inform the client that:
a. Unless waived, in any medical liability
claim involving a contingency fee, the claimant is entitled to receive
no less than 70% of the first $250,000 of all damages received by
the claimant, exclusive of reasonable and customary costs, whether
received by judgment, settlement, or otherwise, and regardless of
the number of defendants. The claimant is entitled to 90% of all
damages in excess of $250,000, exclusive of reasonable and
customary costs and regardless of the number of defendants.
b. If a lawyer chooses not to accept the
representation of a client under the terms of article I, section 26 of
the Florida Constitution, the lawyer must advise the client, both
orally and in writing, of alternative terms, if any, under which the

lawyer would accept the representation of the client, as well as the
client’s right to seek representation by another lawyer willing to
accept the representation under the terms of article I, section 26 of
the Florida Constitution, or a lawyer willing to accept the
representation on a fee basis that is not contingent.
c. If any client desires to waive any rights
under article I, section 26 of the Florida Constitution in order to
obtain a lawyer of the client’s choice, a client may do so by waiving
such rights in writing, under oath, and in the form provided in this
rule. The lawyer must provide each client a copy of the written
waiver and must afford each client a full and complete opportunity
to understand the rights being waived as set forth in the waiver. A
copy of the waiver, signed by each client and lawyer, must be given
to each client to retain, and the lawyer must keep a copy in the
lawyer’s file pertaining to the client. The waiver must be retained
by the lawyer with the written fee contract and closing statement
under the same conditions and requirements provided in 4-1.5(f)(5).
WAIVER OF THE CONSTITUTIONAL RIGHT PROVIDED IN
ARTICLE I, SECTION 26 OF THE FLORIDA CONSTITUTION
On November 2, 2004, voters in the State of Florida approved
The Medical Liability Claimant’s Compensation Amendment that
was identified as Amendment 3 on the ballot. The amendment is
set forth below:
The Florida Constitution
Article I, Section 26 is created to read “Claimant’s right to fair
compensation.” In any medical liability claim involving a
contingency fee, the claimant is entitled to receive no less than 70%
of the first $250,000 in all damages received by the claimant,
exclusive of reasonable and customary costs, whether received by
judgment, settlement or otherwise, and regardless of the number of
defendants. The claimant is entitled to 90% of all damages in
excess of $250,000, exclusive of reasonable and customary costs
and regardless of the number of defendants. This provision is self-
executing and does not require implementing legislation.

The undersigned client understands and acknowledges that
(initial each provision):
_____I have been advised that signing this waiver releases an
important constitutional right; and
_____I have been advised that I may consult with separate
counsel before signing this waiver; and that I may request a hearing
before a judge to further explain this waiver; and
_____By signing this waiver I agree to an increase in the
attorney fee that might otherwise be owed if the constitutional
provision listed above is not waived. Without prior court approval,
the increased fee that I agree to may be up to the maximum
contingency fee percentages set forth in Rule Regulating The Florida
Bar 4-1.5(f)(4)(B)(i). Depending on the circumstances of my case,
the maximum agreed upon fee may range from 33 1/3% to 40% of
any recovery up to $1 million; plus 20% to 30% of any portion of
the recovery between $1 million and $2 million; plus 15% to 20% of
any recovery exceeding $2 million; and
_____I have three (3) business days following execution of this
waiver in which to cancel this waiver; and
_____I wish to engage the legal services of the lawyers or law
firms listed below in an action or claim for medical liability the fee
for which is contingent in whole or in part upon the successful
prosecution or settlement thereof, but I am unable to do so because
of the provisions of the constitutional limitation set forth above. In
consideration of the lawyers’ or law firms’ agreements to represent
me and my desire to employ the lawyers or law firms listed below, I
hereby knowingly, willingly, and voluntarily waive any and all rights
and privileges that I may have under the constitutional provision
set forth above, as apply to the contingency fee agreement only.
Specifically, I waive the percentage restrictions that are the subject
of the constitutional provision and confirm the fee percentages set
forth in the contingency fee agreement; and
_____I have selected the lawyers or law firms listed below as
my counsel of choice in this matter and would not be able to engage
their services without this waiver; and I expressly state that this

waiver is made freely and voluntarily, with full knowledge of its
terms, and that all questions have been answered to my
satisfaction.
ACKNOWLEDGMENT BY CLIENT FOR PRESENTATION TO THE
COURT
The undersigned client hereby acknowledges, under oath, the
following:
I have read and understand this entire waiver of my rights
under the constitutional provision set forth above.
I am not under the influence of any substance, drug, or
condition (physical, mental, or emotional) that interferes with my
understanding of this entire waiver in which I am entering and all
the consequences thereof.
I have entered into and signed this waiver freely and
voluntarily.
I authorize my lawyers or law firms listed below to present this
waiver to the appropriate court, if required for purposes of approval
of the contingency fee agreement. Unless the court requires my
attendance at a hearing for that purpose, my lawyers or law firms
are authorized to provide this waiver to the court for its
consideration without my presence.
Dated this ______ day of ________________, ____.
By: __________________________________
CLIENT
Sworn to and subscribed before me this _____ day of
_______________, _____ by ___________________________, who is
personally known to me, or has produced the following
identification: _________________________________.
__________________________________
Notary Public
My Commission Expires:

Dated this ______ day of ________________, ____.
By: __________________________________
ATTORNEY
(C) Before a lawyer enters into a contingent fee
contract for representation of a client in a matter set forth in this
rule, the lawyer must provide the client with a copy of the statement
of client’s rights and must afford the client a full and complete
opportunity to understand each of the rights as set forth in it. A
copy of the statement, signed by both the client and the lawyer,
must be given to the client to retain and the lawyer must keep a
copy in the client’s file. The statement must be retained by the
lawyer with the written fee contract and closing statement under
the same conditions and requirements as subdivision (f)(5).
(D) As to lawyers not in the same firm, a division of
any fee within subdivision (f)(4) must be on the following basis:
(i) To the lawyer assuming primary
responsibility for the legal services on behalf of the client, a
minimum of 75% of the total fee.
(ii) To the lawyer assuming secondary
responsibility for the legal services on behalf of the client, a
maximum of 25% of the total fee. Any fee in excess of 25% will be
presumed to be clearly excessive.
(iii) The 25% limitation will not apply to those
cases in which 2 or more lawyers or firms accept substantially
equal active participation in the providing of legal services. In those
circumstances counsel must apply to the court in which the matter
would be filed, if litigation is necessary, or if such court will not
accept jurisdiction for the fee division, the circuit court in which the
cause of action arose, for authorization of the fee division in excess
of 25%, based on a sworn petition signed by all counsel that
discloses in detail those services to be performed. The application
for authorization of the contract may be filed as a separate
proceeding before suit or simultaneously with the filing of a
complaint, or within 10 days of execution of a contract for division
of fees when new counsel is engaged. Proceedings on these

applications may occur before service of process on any party and
this aspect of the file may be sealed. Authorization of the contract
will not bar subsequent inquiry as to whether the fee actually
claimed or charged is clearly excessive. An application under this
subdivision must contain a certificate showing service on the client
and, if the application is denied, a copy of the petition and order
denying the petition must be served on The Florida Bar in
Tallahassee by the member of the bar who filed the petition.
Counsel may proceed with representation of the client pending
court approval.
(iv) The percentages required by this
subdivision are applicable after deduction of any fee payable to
separate counsel retained especially for appellate purposes.
(5) In the event there is a recovery, on the conclusion of
the representation, the lawyer must prepare a closing statement
reflecting an itemization of all costs and expenses, together with the
amount of fee received by each participating lawyer or law firm. A
copy of the closing statement must be executed by all participating
lawyers, as well as the client, and each must receive a copy. Each
participating lawyer must retain a copy of the written fee contract
and closing statement for 6 years after execution of the closing
statement. Any contingent fee contract and closing statement must
be available for inspection at reasonable times by the client, by any
other person upon judicial order, or by the appropriate disciplinary
agency.
(6) In cases in which the client is to receive a recovery
that will be paid to the client on a future structured or periodic
basis, the contingent fee percentage must be calculated only on the
cost of the structured verdict or settlement or, if the cost is
unknown, on the present money value of the structured verdict or
settlement, whichever is less. If the damages and the fee are to be
paid out over the long term future schedule, this limitation does not
apply. No attorney may negotiate separately with the defendant for
that attorney’s fee in a structured verdict or settlement when
separate negotiations would place the attorney in a position of
conflict.

(g) Division of Fees Between Lawyers in Different Firms.
Subject to the provisions of subdivision (f)(4)(D), a division of fee
between lawyers who are not in the same firm may be made only if
the total fee is reasonable and:
(1) the division is in proportion to the services performed
by each lawyer; or
(2) by written agreement with the client:
(A) each lawyer assumes joint legal responsibility
for the representation and agrees to be available for consultation
with the client; and
(B) the agreement fully discloses that a division of
fees will be made and the basis upon which the division of fees will
be made.
(h) Credit Plans. A lawyer or law firm may accept payment
under a credit plan. Lawyers may charge clients the actual charge
the credit plan imposes on the lawyer for the client’s transaction.
(i) Arbitration Clauses. A lawyer must not make an
agreement with a potential client prospectively providing for
mandatory arbitration of fee disputes without first advising that
person in writing that the potential client should consider obtaining
independent legal advice as to the advisability of entering into an
agreement containing such mandatory arbitration provisions. A
lawyer shall not make an agreement containing such mandatory
arbitration provisions unless the agreement contains the following
language in bold print:
NOTICE: This agreement contains provisions
requiring arbitration of fee disputes. Before you sign
this agreement you should consider consulting with
another lawyer about the advisability of making an
agreement with mandatory arbitration
requirements. Arbitration proceedings are ways to
resolve disputes without use of the court system. By
entering into agreements that require arbitration as
the way to resolve fee disputes, you give up (waive)

your right to go to court to resolve those disputes by
a judge or jury. These are important rights that
should not be given up without careful
consideration.
STATEMENT OF CLIENT’S RIGHTS
FOR CONTINGENCY FEES
Before you, the prospective client, arrange a contingent
fee agreement with a lawyer, you should understand this
statement of your rights as a client. This statement is
not a part of the actual contract between you and your
lawyer, but, as a prospective client, you should be aware
of these rights:
1. There is no legal requirement that a lawyer charge a client
a set fee or a percentage of money recovered in a case. You, the
client, have the right to talk with your lawyer about the proposed
fee and to bargain about the rate or percentage as in any other
contract. If you do not reach an agreement with 1 lawyer you may
talk with other lawyers.
2. Any contingent fee contract must be in writing and you
have 3 business days to reconsider the contract. You may cancel
the contract without any reason if you notify your lawyer in writing
within 3 business days of signing the contract. If you withdraw
from the contract within the first 3 business days, you do not owe
the lawyer a fee although you may be responsible for the lawyer’s
actual costs during that time. If your lawyer begins to represent
you, your lawyer may not withdraw from the case without giving
you notice, delivering necessary papers to you, and allowing you
time to employ another lawyer. Often, your lawyer must obtain
court approval before withdrawing from a case. If you discharge
your lawyer without good cause after the 3-day period, you may
have to pay a fee for work the lawyer has done.
3. Before hiring a lawyer, you, the client, have the right to
know about the lawyer’s education, training, and experience. If you
ask, the lawyer should tell you specifically about the lawyer’s actual
experience dealing with cases similar to yours. If you ask, the

lawyer should provide information about special training or
knowledge and give you this information in writing if you request it.
4. Before signing a contingent fee contract with you, a lawyer
must advise you whether the lawyer intends to handle your case
alone or whether other lawyers will be helping with the case. If your
lawyer intends to refer the case to other lawyers, the lawyer should
tell you what kind of fee sharing arrangement will be made with the
other lawyers. If lawyers from different law firms will represent you,
at least 1 lawyer from each law firm must sign the contingent fee
contract.
5. If your lawyer intends to refer your case to another lawyer
or counsel with other lawyers, your lawyer should tell you about
that at the beginning. If your lawyer takes the case and later
decides to refer it to another lawyer or to associate with other
lawyers, you should sign a new contract that includes the new
lawyers. You, the client, also have the right to consult with each
lawyer working on your case and each lawyer is legally responsible
to represent your interests and is legally responsible for the acts of
the other lawyers involved in the case.
6. You, the client, have the right to know in advance how you
will need to pay the expenses and the legal fees at the end of the
case. If you pay a deposit in advance for costs, you may ask
reasonable questions about how the money will be or has been
spent and how much of it remains unspent. Your lawyer should
give a reasonable estimate about future necessary costs. If your
lawyer agrees to lend or advance you money to prepare or research
the case, you have the right to know periodically how much money
your lawyer has spent on your behalf. You also have the right to
decide, after consulting with your lawyer, how much money is to be
spent to prepare a case. If you pay the expenses, you have the right
to decide how much to spend. Your lawyer should also inform you
whether the fee will be based on the gross amount recovered or on
the amount recovered minus the costs.
7. You, the client, have the right to be told by your lawyer
about possible adverse consequences if you lose the case. Those
adverse consequences might include money that you might have to

pay to your lawyer for costs and liability you might have for
attorney’s fees, costs, and expenses to the other side.
8. You, the client, have the right to receive and approve a
closing statement at the end of the case before you pay any money.
The statement must list all of the financial details of the entire case,
including the amount recovered, all expenses, and a precise
statement of your lawyer’s fee. Until you approve the closing
statement your lawyer cannot pay any money to anyone, including
you, without an appropriate order of the court. You also have the
right to have every lawyer or law firm working on your case sign this
closing statement.
9. You, the client, have the right to ask your lawyer at
reasonable intervals how the case is progressing and to have these
questions answered to the best of your lawyer’s ability.
10. You, the client, have the right to make the final decision
regarding settlement of a case. Your lawyer must notify you of all
offers of settlement before and after the trial. Offers during the trial
must be immediately communicated and you should consult with
your lawyer regarding whether to accept a settlement. However,
you must make the final decision to accept or reject a settlement.
11. If at any time you, the client, believe that your lawyer has
charged an excessive or illegal fee, you have the right to report the
matter to The Florida Bar, the agency that oversees the practice and
behavior of all lawyers in Florida. For information on how to reach
The Florida Bar, call 850/561-5600, or contact the local bar
association. Any disagreement between you and your lawyer about
a fee can be taken to court and you may wish to hire another lawyer
to help you resolve this disagreement. Usually fee disputes must be
handled in a separate lawsuit, unless your fee contract provides for
arbitration. You can request, but may not require, that a provision
for arbitration (under Chapter 682, Florida Statutes, or under the
fee arbitration rule of the Rules Regulating The Florida Bar) be
included in your fee contract.

________________________ ________________________
Client Signature Attorney Signature
________________________ ________________________
Date Date