February 13, 2007, Introduced by Rep. Caswell 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
$1,000,000.00 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.