June 29, 2005, Introduced by Rep. Taub and referred to the Committee on Judiciary.
A bill to amend 1961 PA 236, entitled
"Revised judicature act of 1961,"
by amending section 919 (MCL 600.919).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
919. (1) The measure of the compensation of members of
the
bar an attorney at law is left
to the express or implied
agreement
of the parties subject to the attorney
and the
attorney's client, except as provided otherwise by law or by
regulation of the supreme court.
(2)
Any An agreement for such compensation , of an
attorney
at law or for reimbursement of
any expenses ,
incident
to incurred by an attorney in
the prosecution or defense
of
any a claim by any party is wholly void
if such
professional
the employment was solicited
by the member of the
bar,
attorney or by any other
another person acting on his
behalf
or at his the request
of the attorney, unless the services
of
such member of the bar the
attorney were first requested by
such
party the client.
(3) If an attorney at law enters into an express or implied
agreement to prosecute a claim for personal injury or wrongful
death that provides that the attorney's compensation is contingent
in whole or in part on successful prosecution or settlement of the
claim or on the amount of recovery, the attorney shall not receive,
retain, or share a fee that is more than 33% of the first
$300,000.00 recovered, 25% of the next $700,000.00 recovered, 15%
of the next $4,000,000.00 recovered, and 10% of any amount
recovered over $5,000,000.00.
(4) The maximum fee under subsection (3) shall be calculated
using the net amount recovered, including taxed costs and interest
included in or on the judgment, but not including disbursements
properly chargeable to the enforcement or prosecution of the claim.
If the recovery is by a settlement or judgment payable in
installments, the maximum fee under subsection (3) shall be
calculated using the present value of the future payments.
(5) Before entering into a fee agreement under subsection (3),
an attorney at law shall advise a client that an attorney may be
employed under a different fee arrangement in which the attorney is
compensated for the reasonable value of services performed, such as
on an hourly or per diem basis. This subsection does not require an
attorney to enter into a fee agreement that the attorney does not
wish to enter into.
(6) A fee agreement under subsection (3) shall be in writing
stating the method by which the fee is to be determined, the nature
of disbursements that will be deducted from the recovery, and the
advice required by subsection (5) regarding the availability of a
different fee arrangement. A copy of the written fee agreement
shall be provided to the client.