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What Can Lawyers Do When Clients Want Consideration Understated to Reduce Fees?

Started by Michael Akerele21 days ago
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Michael Akerele
Michael AkereleForum topic

21 days ago

A recurring problem in practice is where a client asks a lawyer to reduce the consideration stated in an agreement so that the lawyer’s professional fee will also be lower. Some lawyers refuse because they consider it unethical and contrary to professional rules, but the client may simply move on to another lawyer who is willing to do it. The result is that the lawyer who insists on doing the right thing loses the brief and the income. The real issue is not whether lawyers should connive, but how ethical lawyers and the profession can respond to this problem in a practical way. What can lawyers do when faced with this kind of client pressure? How should such situations be handled without losing the client or compromising professional standards? Should there be better enforcement of remuneration rules and stricter consequences for undercutting? Can law firms adopt better client education, engagement terms, or fee structures to reduce this problem? What role should NBA branches and regulators play in protecting lawyers who comply with the rules?

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SA
20 days ago• #2

When a client asks me to understate the consideration so my fee drops, I show him the request hurts him more than me: it understates his acquisition cost for tax, weakens any future claim (the court values his loss by the document he signed), and risks tainting the transaction for illegality. The "saving" on my fee is purchased with those risks. Once he sees that, he's deciding how much protection he wants — not negotiating my fee. Standards and indemnity matter too: a lawyer who documents a falsehood steps outside his professional indemnity cover, which never responds to dishonesty. He carries that exposure personally — and so does his client. The compliant lawyer offers what the undercutter cannot: work that is insurable and defensible. Practically: anchor fees to scope and risk, offer fixed fees where possible, and put the advice in writing — that usually ends the request. The NBA should enforce the Remuneration Order, but the durable answer is competing on value. The brief lost to a lawyer willing to falsify was a client who would eventually have compromised you. That's not a loss — it's risk management.

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What Can Lawyers Do When Clients Want Consideration Understated to Reduce Fees? | Forum | Nigerian Law Forum