(a) A lawyer's fee shall be reasonable. The factors to be considered in determining the reasonableness of a fee include the following:

(1) the time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform. the legal service properly;

(2) the likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer;

(3) the fee customarily charged in the locality,for similar legal services;

(4) the amount involved and the results obtained;

(5) the time limitations imposed by the client or by the circumstances;

(6) the nature and length of the professional relationship with the client;

(7) the experience, reputation, and ability of the lawyer or lawyers performing the services;

(8) whether the fee is fixed or contingent.

(b) When the lawyer has not regularly represented the client, the basis or rate of the fee shall be communicated in writing to the client before or within a reasonable time after commencing the representation.

(c) A fee may be contingent on the outcome of the matter for which the service is rendered, except in a matter in which a contingent fee is prohibited by law or by these rules. A contingent fee agreement shall be in writing and shall state the method by which the fee is to be determined, including the percentage or percentages that shall accrue to the lawyer in the event of settlement, trial or appeal, litigation and other expenses to be deducted from the recovery, and whether such expenses are to be deducted before or after the contingent fee is calculated. Upon conclusion of a contingent fee matter, the lawyer shall provide the client with a written statement stating the outcome of the matter and, if there is a recovery, showing the remittance to the client and the method of its determination.

(d) A lawyer shall not enter into an arrangement for, charge, or collect.

(1) any fee in a domestic relations matter, the payment or amount of which is contingent upon the securing of a divorce or upon the amount of alimony or support, or property settlement in lieu thereof, or

(2) a contingent fee for representing a defendant in a criminal case.

(e) Except as otherwise provided by the Court Rules, a division of fee between lawyers who are not in the same firm may be made only if

(1) the division is in proportion to the services performed by each lawyer, or, by written agreement with the client, each lawyer assumes joint responsibility for the representation; and

(2) the client consents to the participation of all the lawyers involved; and

(3) the total fee is reasonable.

Comment to RPC 1.5

The Court adopts ABA Model Rule 1.5 with certain revisions, most of which were recommendations of the Debevoise Committee. The communication to the client regarding the basis or rate of fee as required in paragraph (b) must be in writing (rather than "preferably in writing"). See R. 1:21-7A. The limitation on the permissibility of contingent fee arrangements contained in paragraph (c) is broadened to provide for prohibitions "by law or by these rules." As to guidelines for contingent fees, see R. 1:21-7, as amended January 16, 1984. The limitation on division of fees as set forth in paragraph (e) is qualified by "except as otherwise provided by the Court Rules." See R. 1:39.

The eight enumerated factors in paragraph (a) to be considered in determining the reasonableness of a fee correspond nearly verbatim to those previously contained in DR 2-106. As to contingent fees, the proscription continues against their use in criminal or domestic relations matters. For the fee dispute resolution structure, see R. 1:20A. See also RPC 5.4.

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