In a divorce case going back 24 years, a dispute arose over whether a client verbally agreed to pay her appellate attorneys a 9 percent interest rate on their fees. The client was unable to pay the fees at the time she retained her lawyers in 1990. Ultimately, these attorneys helped settle the case and the client received $20 million in cash and assets. The client paid $2.3 million in attorney fees but refused to pay the interest arguing that she thought her ex-husband would be responsible for the interest. The appellate court affirmed a jury award of more than $1.6 million to the lawyers recognizing contrary ISBA opinions: "While we acknowledge that the above-cited ISBA opinions do recommend a prudent practice of reducing interest fee agreements to writing, we cannot say that failing to do so under the circumstances of this case was so egregious as to violate public policy." The court pointed out that the client knew that the attorneys were charging interest because she thought her ex-husband would pay the bill. The moral of the story is attorney-client fee agreements should be in writing as to all aspects of the relationship, but attorneys may still recover if the parties do not do so.
Diane M. Bruzas, etc. v. Irene E. Richardson , No 1-09-0495 (1st Dist. Ill. App. Ct. March 22, 2011).
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