Chapter 3 Review Questions 1. Why do the terms of the attorney-client relationship need to established in writing?

It is necessary to establish the terms of the attorney-client relationship in writing in order to establish a written record for purposes of asserting the attorney-client technology. The second purpose is to clearly specify what tasks the lawyer will be performing, and not performing, as well as, the costs associated with said tasks. 2. Explain the differences between a contingency fee agreement, flat fee agreement, and hourly rate agreement. In a contingency fee agreement a lawyer compensated based on an agreed percentage of the damages recovered. In a flat fee agreement the lawyer charges a flat fee for the specific work he will be performing. In an hourly rate agreement the lawyer bills by the hour for the work he is performing, which is based on the agreed hourly rate. 3. What is an attorneys lien? The attorneys lien is a claim by the attorney on a judgment or recovery obtained by the client. 4. What is the difference between fees and costs? Fees are based of the attorneys representation of the client and the subsequent costs incurred through the duration of said representation. Costs are the out-ofpocket expenses incurred by the lawyer during the representation of the client 5. What is meant by the concept litigation plan.

The concept of a litigation plan revolves around developing a holistic and structured approach to defining the clients objectives and a strategy to archive those objectives. Essentially the litigation plan is the demands of the client and the tactics that will be used to successfully obtain the demands. 6. Why might a plaintiff wish to service a demand letter on the defendant before filing a lawsuit? There are various reasons why a plaintiff may wish to serve a demand letter before filing a lawsuit. First off, it gives the appearance that the plaintiff is trying to resolve the issue before resorting to litigation. The demand letter may also used to fish out a response from the future defendant that can be used to figure out what defenses may be used in litigation.