CALDERWOOD & HARKNESS LLP Attorneys at Law 777 South Flower Street, Suite 3400 Los Angeles, California 90017 Telephone: (213) 555-7200
April 20, 2023
Marguerite D. Fonseca 1742 Laurel Canyon Boulevard, Unit 3A Studio City, California 91604
Via First-Class Mail and Electronic Mail
Re: Acknowledgment of Retainer Deposit — Matter No. 1035-00002 (Fonseca Custody & Parenting Plan)
Dear Ms. Fonseca:
We write to confirm that Calderwood & Harkness LLP received your retainer deposit in the amount of $50,000.00 (Fifty Thousand Dollars) on April 20, 2023. This deposit was requested pursuant to, and is governed by the terms of, the Engagement Letter between you and the firm dated April 18, 2023, which you executed in connection with the firm's representation of you. As set forth in the Engagement Letter, the firm has been retained to represent you in connection with custody, parenting-plan, and child-support proceedings concerning your minor children, Isabela Luz Fonseca-Medrano and Mateo Elías Fonseca-Medrano, currently pending before the Superior Court of California, County of Los Angeles, under Case No. 22STFL09847. This matter has been assigned our internal file reference, Firm Matter No. 1035-00002, which you should reference in all correspondence with our office regarding this engagement.
The purpose of this letter is to confirm the receipt of your retainer deposit, to explain how those funds will be held and applied, and to summarize your rights concerning those funds. We ask that you review this letter carefully and retain it, along with the enclosed copy of the Engagement Letter dated April 18, 2023, for your personal records.
Client Trust Account Confirmation
In accordance with the California Rules of Professional Conduct, including Rule 1.15, and the requirements of the State Bar of California, your retainer deposit of $50,000.00 has been deposited into the firm's Client Trust Account, which is an Interest on Lawyers' Trust Account (IOLTA) maintained at a financial institution approved by the State Bar of California. The funds in this account are held separately from, and will not at any time be commingled with, the firm's operating funds or the funds of any other client of the firm.
It is important that you understand that the retainer deposit is and remains your property unless and until it is applied to fees earned by the firm or costs and expenses incurred on your behalf in connection with this matter. Until such application occurs, the funds belong to you, and the firm holds them in a fiduciary capacity. No portion of the retainer deposit will be transferred from the Client Trust Account to the firm's operating account until fees have been earned or costs have been incurred and properly invoiced to you, as described in greater detail below.
Application of Retainer Funds
The firm will bill you on a monthly basis for legal services rendered and costs advanced during the preceding billing period. Each monthly invoice will contain a detailed description of the professional services performed, including the date of each service, the identity of the attorney or professional who performed it, the time expended, and the applicable hourly rate. For your ease of reference, the hourly rates applicable to this engagement, as set forth in the Engagement Letter, are as follows:
These rates are subject to the adjustment provisions set forth in Section 4(b) of the Engagement Letter. In the event any additional attorneys, paralegals, or other legal professionals are assigned to your matter, you will be advised of their applicable billing rates before any charges are incurred.
Upon your receipt and approval of each monthly invoice, the amount reflected thereon as due and owing will be transferred from the Client Trust Account to the firm's operating account. If you have any questions or concerns regarding any entry on a particular invoice, we encourage you to raise them promptly so that they may be addressed before the transfer is made.
In addition to professional fees, costs and expenses advanced on your behalf — including, but not limited to, court filing fees, process server fees, deposition reporter and transcript charges, expert witness and consultant fees, photocopying and document reproduction charges, travel expenses, and other out-of-pocket disbursements — will also be drawn from the retainer deposit. All such costs will be separately itemized on each monthly invoice to ensure full transparency.
Replenishment Obligation
As set forth in Section 5(c) of the Engagement Letter, you have agreed to replenish the retainer deposit in the event that the balance in the Client Trust Account is depleted or falls below a specified minimum threshold. Should the retainer balance reach or fall below that minimum level, the firm will promptly notify you in writing and request that you replenish the retainer to an amount sufficient to maintain adequate funds on deposit as the matter proceeds.
We wish to remind you that, as discussed during our initial consultation and as set forth in the Engagement Letter, the estimated total fees for this engagement range from approximately $120,000 to $175,000, depending upon the resolution path ultimately pursued — that is, whether the custody, parenting-plan, and child-support issues are resolved through negotiation, mediation, or contested litigation, including trial. The initial retainer deposit of $50,000.00 represents a portion of the anticipated total fees, and it is likely that additional deposits will be necessary as the matter progresses through its various stages. We will, of course, keep you informed of the status of the retainer balance and will provide reasonable advance notice of any replenishment requests to the extent practicable.
Accounting and Statements
You will receive periodic trust account statements reflecting all activity in the Client Trust Account attributable to your matter, including deposits made, disbursements transferred to the firm's operating account, and the remaining balance held in trust. These trust account statements will accompany, or be provided in connection with, the firm's monthly billing invoices, so that you will have a complete and current picture of both the fees and costs incurred and the funds available in your retainer account at all times. Should you wish to receive an interim accounting of your trust account balance at any time between regular billing cycles, please do not hesitate to contact our office, and we will provide one promptly.
Refund of Unused Funds
Upon the conclusion of our representation of you in this matter — whether by resolution of the underlying proceedings, termination of the engagement, or otherwise — any funds remaining in the Client Trust Account that have not been applied to fees earned or costs and expenses incurred on your behalf will be promptly refunded to you. The firm will provide a final accounting at that time reflecting all transactions in the trust account over the course of the engagement, and any refund due will be issued within a reasonable period following the final accounting, in accordance with the California Rules of Professional Conduct.
Contact Information
Should you have any questions whatsoever regarding the retainer deposit, billing procedures, the Client Trust Account, or any other aspect of this engagement, please do not hesitate to contact either of the following members of your legal team:
Devon Archer, Lead Associate Telephone: (213) 555-7200
Email: darcher@calderwoodharkness.com
Priya Anand, Billing Partner Telephone: (213) 555-7200
Email: panand@calderwoodharkness.com
Both Devon and I are available to address your questions and will make every effort to respond to inquiries within one business day.
We sincerely appreciate the confidence you have placed in Calderwood & Harkness LLP by entrusting us with this important matter. We understand the significance of the issues involved, and the entire team is committed to providing you with the highest level of professional service. We look forward to working diligently on your behalf to achieve the best possible outcome for you and your children.
Very truly yours,
CALDERWOOD & HARKNESS LLP
By: ________
Priya Anand Partner
cc: Oliver Mackenzie, Partner, Calderwood & Harkness LLP Devon Archer, Associate, Calderwood & Harkness LLP Nadia Petrov, Associate, Calderwood & Harkness LLP
Enclosure: Copy of Engagement Letter dated April 18, 2023
| Attorney | Role | Hourly Rate |
| Oliver Mackenzie | Responsible Partner | $925.00/hr |
| Priya Anand | Billing Partner | $875.00/hr |
| Devon Archer | Lead Associate | $625.00/hr |
| Nadia Petrov | Working Associate | $485.00/hr |