The New Jersey State Bar Association’s Board of Trustees advanced the Association’s advocacy on attorney retainer agreements at its Oct. 14 meeting.
The trustees agreed to submit additional comments to the Judiciary on whether attorney retainer agreements may prohibit a client from settling a case if the settlement waives the lawyers’ fees or costs. Those comments reemphasize the NJSBA’s position that a settlement should not be prohibited in such circumstances, but that retainer agreements should address the payment of fees if the terms of settlement do not.
The NJSBA has advocated on issues related to retainer agreements as an amicus party in Balducci v. Cige. The Association also served on the special Judiciary committee formed following the Balducci decision and submitted comments on recommendations made by the state’s Advisory Committee on Professional Ethics.
In a letter to Administrative Director of the Courts Judge Glenn A. Grant, the NJSBA stated that lawyers and clients should discuss the potential for a settlement without attorneys’ fees at the outset and decide how attorneys’ fees will be paid in that situation.
“The retainer agreement should specifically address how the fees will be computed and clearly advise the client what they will be responsible for if fees are not part of an ultimate settlement. This will ensure clients can make an informed decision if presented with such a settlement option,” the letter stated.