[Code of Federal Regulations]
[Title 32, Volume 5]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR776.24]

[Page 514-516]
 
                       TITLE 32--NATIONAL DEFENSE
 
                   CHAPTER VI--DEPARTMENT OF THE NAVY
 
PART 776_PROFESSIONAL CONDUCT OF ATTORNEYS PRACTICING UNDER THE 
 
                 Subpart B_Rules of Professional Conduct
 
Sec. 776.24  Fees.

    (a) Fees:

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    (1) A covered USG attorney shall not accept any salary, fee, 
compensation, or other payments or benefits, directly or indirectly, 
other than Government compensation, for services provided in the course 
of the covered USG attorney's official duties or employment.
    (2) A covered USG attorney shall not accept any salary or other 
payments as compensation for legal services rendered, by that covered 
USG attorney in a private capacity, to a client who is eligible for 
assistance under the DON Legal Assistance Program, unless so authorized 
by the JAG. This rule does not apply to Reserve or Retired judge 
advocates not then serving on extended active-duty.
    (3) A Reserve or Retired judge advocate, whether or not serving on 
extended active-duty, who has initially represented or interviewed a 
client or prospective client concerning a matter as part of the 
attorney's official Navy or Marine Corps duties, shall not accept any 
salary or other payments as compensation for services rendered to that 
client in a private capacity concerning the same general matter for 
which the client was seen in an official capacity, unless so authorized 
by the JAG.
    (4) Covered non-USG attorneys may charge fees. Fees shall be 
reasonable. Factors considered in determining the reasonableness of a 
fee include the following:
    (i) The time and labor required, the novelty and difficulty of the 
questions involved, and the skill requisite to perform the legal service 
properly;
    (ii) The likelihood, if apparent to the client, that the acceptance 
of the particular employment will preclude other employment by the 
attorney;
    (iii) The fee customarily charged in the locality for similar legal 
services;
    (iv) The amount involved and the results obtained;
    (v) The time limitations imposed by the client or by the 
circumstances;
    (vi) The nature and length of the professional relationship with the 
client;
    (vii) The experience, reputation, and ability of the attorney or 
attorneys performing the services; and
    (viii) Whether the fee is fixed or contingent.
    (5) When the covered non-USG attorney has not regularly represented 
the client, the basis or rate of the fee shall be communicated to the 
client, preferably in writing, before or within a reasonable time after 
commencing the representation.
    (6) 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 paragraph (a)(7) of this section or other law. 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 covered non-USG attorney 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 covered non-USG attorney 
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.
    (7) A covered non-USG attorney shall not enter into an arrangement 
for, charge, or collect a contingent fee for representing an accused in 
a criminal case.
    (8) A division of fees between covered non-USG attorneys who are not 
in the same firm may be made only if:
    (i) The division is in proportion to the services performed by each 
attorney or, by written agreement with the client, each attorney assumes 
joint responsibility for the representation;
    (ii) The client is advised of and does not object to the 
participation of all the attorneys involved; and
    (iii) The total fee is reasonable.
    (b) Paragraphs (a)(4) through (a)(8) of this section apply only to 
private civilian attorneys practicing in proceedings conducted under the 
cognizance and supervision of the JAG. The primary purposes of 
paragraphs (a)(4) through (a)(8) of this section are not to permit the 
JAG to regulate fee arrangements between civilian attorneys and their 
clients but to provide guidance to covered USG attorneys practicing with 
non-

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USG attorneys and to supervisory attorneys who may be asked to inquire 
into alleged fee irregularities. Absent paragraphs (a)(4) through (a)(8) 
of this section, such supervisory attorneys have no readily available 
standard against which to compare allegedly questionable conduct of a 
civilian attorney.