If you terminate the lawyer he is entitled to was is called quantum meruit fees. This is the reasonable value of his fees up to the point of his discharge. If he wants to pursue it, he would have to file a lien in your case. Any costs he expended are clearly recoverable from you. If you hire a new attorney that attorney usually sets their fee and you have to pay attorney #1 from your portion of any recovery. Attorney #2 can be helpful in negotiating on your behalf. There are various factors that go into the value of Attorney #1s lien amount.
Typically he will send the lien at his hourly rate for the number of hours he worked on the case. But in the end it is usually all negotiable unless he sues or pursues arbitration for his fees. Heres an example: if he worked 10 hours on your case and his rate is $250/hour, he will claim $2,500. But if attorney #2 puts in 30 hours and the case only settles for $10,000 it would be unfair for #1 to get $2,500 if #2 gets $3,333. Other factors include what settlement offers are on the table today as a result of #1s work and what the case settles for later. If they are offering you $5,000 today and #2 gets it up to $50,000, then #1s work was not very helpful. That is a factor. On the other hand, if they are offering $5,000 today and #2 only gets it to $6,000 10 months from now, #2 did not add much value. There is a famous case where #1 worked the case from day 1 up until the day before trial when the plaintiff got her relative to substitute in on the day of trial. The relative settled the case before the trial started. It was apparent that she was trying to cheat the lawyer out of his fee and the appellate court held that #1 earned his entire 1/3 fee.
As you can see, there are a lot of factors that go into this process. But if you are not comfortable with your lawyer, you should not hesitate to change to find one that will get the job done well and in a timely fashion. If #1 truly has not done anything on your case, then his lien should be nominal or he may even forego filing one.
Answered on Apr 22nd, 2011 at 10:11 AM