Standard Terms & Fees

Practice Areas - Engagement Letter

Our standard form of engagement letter is set forth below. Each engagement, however, involves a determination of the need for a retainer, discussion of expected costs, and in some cases, negotiation over rates. We typically ask for retainers: (i) with new clients that were not referred from a standard referral source; (ii) in engagements where we are acting as local counsel; (iii) in litigation where there will be substantial up-front costs; and (iv) in other cases where we want a commitment from our client as to the matter engaged.

Contingency Cases

We generally do not agree to take a case on contingency. There are several reasons for this policy. First, it is not always a given that if we obtain a judgment, the Defendant will pay. Compare this to personal injury cases, where the question of payment is not normally in issue because insurance companies can pay. Also, it is difficult to obtain summary judgment in a personal injury case (meaning that the Defendant has to go to a jury trial to win), whereas in business cases, summary judgment is often the manner in which a defendant can win the case. Second, business cases are often factually and legally complicated, preventing us from making an easy determination of the likely outcome. Third, we often seek remedies of an equitable non-monetary nature. Fourth, business cases often require expert testimony, sometimes they even require consultation with an expert before the case can be filed, to verify the good faith basis for proceeding. Fifth, litigation is often a means to negotiating a result that is not primarily aimed at recovering damages. We have in the past in certain cases agreed to a modified form of contingency, where the client pays us at a lesser rate during the case, and if we are successful, we are paid as a percentage of the recovery.

Collection Cases

We sometimes agree to litigate collection cases, where the subject matter or the amount in controversy is significant. We are not general collection lawyers, and cannot efficiently handle large volumes of small district court cases. We refer almost all of these cases to other lawyers.

Corporate Formation

We will form a standard Maryland corporation or close corporation for a flat $750 fee. This includes articles of incorporation, by-laws, organizational minutes, stock certificates, filing of the Combined Registration Form, obtaining a tax identification number, and an S election. It does not include recordation costs (fees charged by the State Department of Assessments & Taxation). Our charges for forming limited partnerships, Limited Liability Companies, Limited Liability Partnerships, and other special forms of entities are at our general hourly rates.

Initial Consultation

We will generally meet with prospective clients *in our office* for free for up to one hour, time in excess of one hour is billed at our standard rates. We encourage prospective clients to obtain second opinions or to compare our fees and services. Our objective is to provide a high level of service, and direct contact with clients, so we generally do not do large volume style cases, where direct contact with a lawyer is rare. We employ three highly trained professional paralegals, and at their rates, we are often able to complete complicated legal transactions or resolve other issues very cost effectively. All work performed by the paralegals is reviewed and approved by a licensed attorney.

Standard Terms of Engagement

This is to confirm our understanding with you with respect to our representation.

1. Nature of Services. The services to be rendered include representing [the client] in all aspects of [describe nature of engagement].
2. Fees. Our firm's fees will be based on the usual hourly billing rates, as they may exist from time to time, of the attorneys and paralegals in our firm who work on the matter. Additionally, charges for computerized research tools, such as Lexis and Westlaw, will be billed based upon rates that reflect the time the system is used, and the extent and nature of research required. The present hourly billing rates of the attorneys and paralegals at Bowie & Jensen are as follows:

3. Members of the Firm:

   Robert R. Bowie, Jr.	$375
   Mark T. Jensen	$350
   Michael D. Oliver	$340
   Priscilla Carroll	$320
   Matthew G. Hjortsberg	$290
   Jay G. Merwin, Jr.	$290
   Jeremy T. Garner	$290
   Joshua A. Glikin	$290
   J. Nicole Windsor	$290
   Michael W. Siri	$250
   Kimberly S. Grimsley	$250

   Associates:

   Vincent M. Guida	$195
   Pamela K. Riewerts	$195 $275/patent
   Lisa D. Sparks	$190
   William G. Sturm	$190

   Other professional Staff:

   Paralegals	$125
   Law Clerks	$125

   Of Counsel and Special Counsel:

   Larry J. Guffey, Patent Counsel	$395
   Jason C. Brino (Special Counsel)	$250
   John T. Willis (Of Counsel)	$225
   James D. Stone (Of Counsel)	$200
   William C.C. Barnes (Of Counsel)	$200

4. Expenses. In addition to the fees, you will be charged for all costs associated with the services rendered. These costs will include, but are not to be limited to, actual court costs, investigative expenses, costs of expert witnesses, court reporter, travel expenses, external delivery and courier services, express mail, air courier services and document reproduction (if done off site). Although we will advance most of these costs on behalf of you, we may ask you to pay directly any expenses in excess of $200.00.
5. Billing. We will bill you on a monthly basis for all fees and expenses, which bills will be payable upon presentation. All bills will show the services rendered, the date rendered, by whom, and the cost. We ask that you review each bill promptly when rendered and bring any questions to our attention within thirty (30) days, after which time all bills shall be deemed accurate, fair and reasonable.
6. Credit Card Payment; Prompt Payment Discount; Late Payment Interest charges. All clients may pay their bills via credit card, using our on-line payment system at YYY. Please call Jeanette Yocum to obtain a user i.d., and password, to make payments. If you are concerned about privacy, please review our privacy statement at YYY. Alternatively, you may direct us to make the payment for you, using one of the attached 2 forms for payment. Use the first form to authorize us on a bill-by-bill basis. Use the second form if you would like us to automatically charge your card on the 15th of each month in which a bill is rendered. If you choose the latter option, we will apply a 5% prompt pay discount (applicable to the fee portion of the bill only) for each payment made on the 15th of each month. No discounts are permitted after the 15th of each month. Any bill outstanding more than 60 days shall incur an interest carry charge of 1% per month, which will be automatically added to the bill/statement, and which you agree to pay. Please handle all billing disputes directly with your assigned billing attorney. If, after a payment by credit card, you later dispute the charges, unless prohibited by law, you agree not to cancel, revoke or dispute any previously entered charge on your credit card. If you do so, and it is later determined that the charge was properly authorized, you agree to pay all out of pocket fees and costs incurred by Bowie & Jensen, LLC as a result of the improper cancellation, revocation or dispute.
7. Termination of Engagement. Subject to general standards of professional responsibility of the legal profession, our firm will have the right to terminate our representation of you if any fees and/or expenses are not timely paid after a statement with respect to them is rendered. You may terminate this engagement at any time upon written notice to us. If the engagement is terminated, you shall be liable for all fees and expenses incurred to the date of such exercise.
8. Post termination record keeping; copies. As a service to current clients, we do not separately charge for offsite record keeping and imaging. If you request copies of your file, we generally do not charge for such copies, however if the volume is significant, we will outsource such copies and you shall be responsible to pay them as ordinary expenses under Section 3 above. In the event this engagement is terminated, your file will be transferred off site, and we will charge you for all access to the file and all copies made.
9. Spoliation of Evidence. By this letter we specifically advise you that in connection with litigation matters, you must take reasonable efforts to preserve all documents, electronically stored evidence and all other matters that are potentially subject to discovery. Failure to do so can have material negative impact on your case. Without limiting the generality of this requirement, by way of example, you may be required to preserve all emails, backup tapes, hard disks and other storage media, hard copy files, recorded voicemails and all other potential evidence. In the event that we discover that any evidence has been knowingly destroyed by you, we may immediately terminate our representation, subject to rule of court and general ethical requirements.
10. Insurance Investigation. By this letter we specifically advise you that you must review all known insurance policies for possible coverage of any claim against you. Unless you specifically request us to review the insurance policy or to assist you with any claim against your insurance company, we will not undertake an independent investigation of any claims for insurance and you agree we owe you no duty to do so.
11. Retainer. A retainer of _______________ ($0.00) will be payable before we do further work. This retainer will be applied toward monthly bills and against any outstanding charges billed. We ask that the retainer be replenished each month. Any moneys remaining in the escrow account upon the completion of our representation of you and after all fees and expenses have been paid will be returned to you, without interest. Retainers may also be paid by credit card. By law we are obligated to maintain retainers and client funds in separate accounts. A credit card payment, however, deposits into our general account. Therefore, in this situation, upon notification of payment by credit card, we immediately deposit funds from our operating account into our escrow account in the amount of the payment. Because the credit card transaction takes at least 2 banking days to clear, your funds will be in escrow prior to our receipt of the deposit.

If the foregoing correctly sets forth your understanding of the terms of our engagement, please so indicate by dating, signing and returning the enclosed copy of this letter.