Hybrid Fee Agreements: Okay or No-kay? - New York Legal Ethics hb```b``b`
| (Ibid.). If no retainer is required, then mark the checkbox labeled Shall Not Pay A Retainer. a lease extension, a new cheaper contract or a million other legitimate reasons. A straight contingency fee agreement is not well-suited for business litigation because a business client may not see a case through to its conclusion, may opt for a settlement which does not include cash, or may change lawyers right when the case appears more valuable. The award cannot be considered part of the recovery obtained by the attorney because that would simply add to the prevailing partys contract fee obligation: In other words, it would be paying (the attorney) attorneys fees for getting attorneys fees. (Mahoney v. Sharff, supra, 191 CA2d at 197 (parentheses added)). Retainer), then proceed through the corresponding statement to document the dollar amount of the retainer on the blank line attached to the dollar sign. He has written and lectured extensively about UM/UIM Arbitrations and is a member of CAALA and the San Fernando Valley Bar Association. endstream
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The contract shall be in writing and shall include, but is not limited to, all of the following: (1) A statement of the contingency fee rate that the client and attorney have agreed upon. 15. 0000004643 00000 n
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A hybrid is a contingency fee agreement with all its requirements It weighs on the reality of thinking that if a lawyer sits down to negotiate with a potential client remotely, he must recommend in writing to the client to consult another lawyer before accepting such a privilege. This, of course, is with the understanding that he or she must represent the Client successfully to obtain payment. 2415 0 obj
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Contingency Fee Example An attorney may accept a case from a client in return for a percentage (%) of the total proceeds ($) received by the other party. For more difficult and risky cases, our percentage of contingency fees can reach 45% of the recovery. The Agreement, executed by Gerber, Harmon, and the Bryans on August 20, 2009, provided for total contingency attorneys' fees of 40 percent of any gross recovery greater than $100,000. All rights reserved.
Orange County Bar Association 0000005382 00000 n
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The attorney, instead of being paid by the hour, will receive a portion of the total amount of funds collected from the other party after a settlement or judgment. Thus, if a retainer fee will be paid as per this agreement, you must mark the first checkbox in this section (III. To share the risk and benefits of uncertain recovery the Firm and the Client agree to variable fees as set out below and the following defined rates apply to calculation of such fees: Fees calculated based on the time spent on the Clients Case and using the Minimum Hourly Rate (the Minimum Fees) will be payable to the Firm by the Client as and when accounts are rendered regardless of the amount, if any, ever recovered on account of the Clients Case. at 370.) The percentage recovery will be calculated [BEFORE/AFTER] outstanding medical bills, expenses and costs of suit are deducted. Copyright 2023, Thomson Reuters. A contingency fee allows a client to only make a payment for the services if the contingency is met. * For more information about The Florida Bars Fee Arbitration Program visit this link or contact the Attorney Consumer Assistance Program (ACAP) at 8663520707. Client agrees to pay costs of investigation, out-of-pocket costs and expenses [ON A MONTHLY BASIS]/[AS THEY ARE BILLED]/[BY REMITTING $_________ PER MONTH]/[OTHER ARRANGEMENT]. The second article designated as II. X7Y>DL)o:9WZsIlS@jxZ]0)[xIKlY7i;Hb7q0UN_B/qBl
/YaZ$_1}ZGz2lO)$*8HPL q;3MsC|R}03C(B9>Y[G^j^dNeHUVg!,eXL|kG*"|L8:#qx"-RA}6(? 9U! INDEMNIFICATION. It is cost-effective for the client and provides the attorney with a regular cash flow in order to prosecute the case. A fee agreement is a document signed between a client requesting the services and a service professional that sets out the terms under which a service provider will do the work. 12.
Free Retainer Agreement Template | Sample - PDF | Word - eForms 0000002804 00000 n
Regardless of whether a retainer fee is required, you must locate and tend to article III.
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|lLtTH[Da! Required to pay a Retainer in the amount of $[#] to the Service Provider as an advance on future Services to be provided (Retainer). More hourly-based business litigation lawyers are being asked to prosecute cases on a contingency fee. Contingency Fee Agreements. As noted in the contingency fee section above, rates double the lawyers normal hourly rate are considered not unreasonable in a pure contingency fee context and a similar factor would likely be appropriate under a hybrid fee arrangement if the lawyer was being paid a base hourly rate substantially below his or her normal hourly rate. THE PARTIES.
PDF The State Bar of California Standing Committee on Professional (See Los Angeles Bar Assn Form.Opn. Once you are ready to develop and execute paperwork framed around the terms of an agreed-upon attorneys contingency payment(s), select the Adobe PDF, MS Word (.docx), or OpenDocument text links above this statement. %PDF-1.4
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Since many business cases can involve the allocation of attorneys` fees, how these allowances are handled is crucial. If the attorney fails to comply with any of the section 6147 requirements, it renders the agreement voidable at the option of the plaintiff, and the attorney shall thereupon be entitled to collect a reasonable fee. ( 6147(b)), Because many business litigation cases involve contracts which provide an award of attorney fees and costs to the prevailing party, it is absolutely essential that the handling of those awards is spelled out clearly in the fee agreement. Violation of that rule renders the lien unenforceable. 0000006001 00000 n
In practice, such a confirmation can be inserted in the contract, as well as a place where the client can communicate that he has read and understood his right to consult another lawyer while accepting the privilege. 0000002378 00000 n
The Signature Party representing the Attorney or Law Firm must sign the Attorneys Signature line then print his or her name on the space labeled Print Name.. This Agreement may be modified or amended if the amendment is made in writing and is signed by both parties. In addition, even if a case is suitable for a contingency fee agreement, we must carefully manage our resources. Therefore, it is recommended that the fee agreement set forth specifically the attorneys regular customary hourly rate for cases of like complexity and that such rate is being reduced in favor of a contingency. Barry P. Goldberg is the principal of Barry P. Goldberg, A Professional Law Corporation, located in Woodland Hills. Gather your references for this paperwork then open the file you downloaded with the appropriate software. Hb```f``2A@l(T0K@{WZ`6Dp~c``8@! Step 8 Address The Topic Of Termination. The Retainer is: (check one). 6. HVMO@W1^{U! Thus, if the relationship ends before the contingency representation is completed, any unearned portion of the flat fee will be subject to refund. The parties will negotiate the hourly rate, contingency, retainer amount, and terms of termination.
"Hybrid" fee agreements for business litigation - Plaintiff Magazine 4. A contingency fee is the attorneys compensation that is only owed if funds are received by the other party.
Under the Rules of the Profession, Rule 4-200(a), a lawyer cannot enter into or collect an agreement on illegal or unscrupulous fees. INDEPENDENT CONTRACTOR STATUS. For the hybrid relationship to work for the lawyer, the lawyer must be able to protect himself from the client by eliminating the advantage of ascending contingency for his own business reasons. This Agreement supersedes any prior agreements, promises, conditions, or understandings between the Client and Service Provider. LAW OFFICES OF JOHN P. LAWYER . The term unscrupulous is unique in California law and has been defined in terms of attorneys` fees as so exorbitant and completely disproportionate to the services provided they shock the conscience. (See Bushman v., State Bar of Cal. A retainer acts as a non-refundable deposit for future service from an attorney, accountant, or other professional. An hourly rate fee coupled with a bonus fee based, in part, upon a favorable outcome to the client is not a contingent hybrid fee arrangement. An attorney may accept a case from a client in return for a percentage (%) of the total proceeds ($) received by the other party. Lawyers who charge by the hour will do what they are paid for charge hours. This is often due to 2 factors, 1) The client does not have the funds to pay the attorney by the hour and 2) The attorneys portion of the proceeds would exceed the amount if they were paid by the hour. For larger matters, however, the standard 33-1/3/% fee earns more money for the lawyer. EXPENSES. You and your lawyer should agree on what you will pay and which services will be provided. Upon the Client receiving an Invoice from the Service Provider. This agreement represents the full agreement between Client and Lawyer. A 'hybrid' fee arrangement involves both (1) a fee based on a fixed rate of payment and (2) a fee based on a stated percentage of a favorable outcome. Therefore, the client can unilaterally decide to settle or reject the claim, no matter how the lawyer thinks about it and no matter if it would destroy a valuable success commission. The Committee recognized that a lawyer who charges a modified contingency fee avoids the total risk of not receiving a claim (since the lawyer receives an hourly fee).
Sample Hybrid Contingency Fee Agreement - Ephori London 140 N. Phillips Ave. Suite 203, Sioux Falls, SD 57104 (605 . However, in the hybrid, he may charge a reduced rate of $150 per hour and accept a 20 percent contingency on the total of the outcome of the case. A contingency fee agreement is a legal document that governs the relationship between an attorney and client where the attorney's fees are based on a percentage of the amount recovered.
Client Fee Agreements and Letters of Representation - LegalFuel Retainer to indicate the status of this option. In such a case, the client is not obligated to pay by the hour or other fees. . . Litigation costs are the costs incurred in a legal dispute, with the exception of attorneys` fees. The end result will be a hybrid that will allow the customer to travel those extra miles to get a great result in a business case. In Arnall, supra, the court found that the term contingency fee contract is ordinarily understood to encompass any arrangement that ties the attorneys fee to successful performance, including those which incorporate a non-contingent fee based upon the rate of payment. STATE AND FEDERAL LICENSES. SERVICES.
12. uIP^S:u$ }^3I=lRTf. c.) Making payments of taxes incurred while performing the Services under this Agreement, including all applicable income taxes. In the absence of a contract expressly providing that he (attorney) may receive those fees in addition to his compensation under the contract; those fees must be credited to the amount payable under the contract. (Mahoney v. Sharff (1961) 191 CA 2d 191, 195, (emphasis in original; parentheses added), Court-ordered fees are designed to relieve the prevailing party of a fee obligation. In order for the hybrid relationship to work for the attorney, the attorney must be able to protect himself against the client eliminating the benefit of the upside contingency for his own business reasons. As noted above, the maximum compensation may be limited to a percentage of the amount recovered, to a maximum hourly rate, or to the lesser of those two items. The blank lines placed below this phrase expect the legal name and business address of the Law Firm or the Attorney entering this contract. There are additional requirements for .
Orange County Bar Association Lawyer reserves the right to terminate this contract if at any time he/she concludes that the claim is without merit. Service Provider shall be paid, in accordance with section IV: (check one). The first item or article of this document provides the language needed to attach the Client to this agreement however, you must supplement this wording with the full name of the Business Entity or Private Party that will hire the Attorney named above on a contingency basis. 0000003209 00000 n
At FindLaw.com, we pride ourselves on being the number one source of free legal information and resources on the web. This Agreement shall remain in effect in the event a section or provision is unenforceable or invalid. 0nK:P CF1Ath2$r>5[B\~@i70= p[b4|={Fk(1]zh@Wv YV
N UK[j[B;XCYUu^yrp#xX3e TERM. There SHALL NOT be a contingency-fee arrangement as part of this Agreement. Two of the largest arbitration tribunals are the American Arbitration Association (AAA) and JAMS. The retainer agreement acts as both an agreement for services and allows the service provider to collect pre-payment for future services. Once youve done so, locate the words The Law Offices Of at the top of the page. Client agrees not to do any act that impairs the value of the case. (Hall v. Orloff (1920) 49 Cal.App 745.) Only the service provider and the client are legally required to sign the document. What to Expect Regarding Fees and Billing. $[#] for the completion of the Services. All rights reserved.
Contingency Fee Agreement: Definition & Sample - ContractsCounsel @Jb
Sample Retainer and Contingency Agreement for an Injury Case
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Model wording for hybrid fee agreement between lawyer and plaintiff Service Provider agrees to provide the following Services: [SERVICES]. After meeting with the qualified attorneys they will give their rates for the case based on its chance of winning in court and who is the Defendant. Contingency Fee Agreement - For legal work that is paid only if a judgment is received by the client. This may include any amounts collected for the plaintiff by the attorney. The only cost will be if the attorney wins the case and funds are received. A reasonable alternative is to insist on a hybrid fee agreement wherein the attorney is paid a reduced hourly rate, but accepts an upside on contingency. Under Rules of Professional Conduct, rule 4-200 (a), a lawyer may not enter into an agreement for or charge or collect an illegal or unconscionable fee. The term unconscionable is unique to California law and has been defined, with respect to attorney fees, as so exorbitant and wholly disproportionate to the services performed as to shock the conscience. (See, Bushman v, State Bar of Cal. The only cost will be if the attorney wins the case and funds are received. $1g1s i"_hRxq~~qY!Wx59a;:{;6B,K(}-oj&eK{dXO?0`G` The Practice Resource Center of The Florida Bar, Best Practices for Remote Court Proceedings, RULE 4-1.5 FEES AND COSTS FOR LEGAL SERVICES, Fee Contract Clause Consent to Arbitration. Contingent Fee AgreementsB&P 6147 Business and Professions Code Section 6147 governs contingent fee agreements. 0000001357 00000 n
I, ____________________, acknowledge that I have read this agreement fully, understand its terms., and agree to them. 0000078472 00000 n
Mr. Goldberg has been in practice since 1984 and attended the University of California, Los Angeles undergraduate and obtained his law degree from Loyola Law School, Los Angeles. ___________________ ("Client") requests and authorizes _______________________ ("Lawyer") to represent him/her in all matters arising out of the accident occurring on [DATE OF ACCIDENT], at [TIME] a.m./p.m., against [THE DEFENDANT(S)].
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(Matter of Yagman (Rev.Dept. 1999-1 (opining that as long as the client enters into the fee agreement in an arm's length transaction and agrees to the fee with informed consent, such arrangements Limiting the maximum compensation to the lesser of the two will to the benefit of the plaintiff, but depending on the risks involved may not be acceptable to the lawyer.
Fee Agreement Template | Create in a Few licks - Lawrina THE PARTIES. A contingency fee allows a client to only make a payment for the services if the contingency is met. All of these non-cash resolutions create problems for the prosecuting attorney to actually get paid. However, this structure transfers much of the risk of the lawsuit to the law firm, which could end up spending hundreds of thousands or even millions of dollars of legal time on a case. 13.
PDF qwertyuiopasdfghjklzxcvbnmqw ertyuiopasdfghjklzxcvb nmqwert (3) A statement as to what extent, if any, the client could be required to pay any compensation to the attorney for related matters that arise out of their relationship not covered by their contingency fee contract. This is usually between $200 and $500 and is generally considered a deposit relative to the total cost incurred by the court during the proceedings. 0000001856 00000 n
Of great importance is that an attorneys lien against a clients future recovery to secure hourly legal fees is considered a charging lien. Fee agreements by which the attorney obtains an ownership, possessory, security or other pecuniary interest adverse to the client must comply with California Rules of Professional Conduct, rule 3-300. The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver or limitation of that partys right to subsequently enforce and compel strict compliance with every provision of this Agreement. Setting up a retainer agreement begins with a client seeking the services of someone else in exchange for payment.
PDF Alternative Fee Arrangements and Litigation Finance - Kirkland & Ellis Fee Agreements: What Are Your Options? - Ogborn Mihm LLP The American Bar Association (ABA) states the following: In a contingent fee arrangement, the lawyer agrees to accept a fixed percentage (often one-third (1/3)) of the recovery, which is the amount finally paid to the client. I received a copy of the agreement when I signed it. (4) Unless the claim is subject to the provisions of section 6146 [MICRA], a statement that the fee is not set by law but is negotiable between attorney and client. 7. It is common in a retainer agreement for a clause to read: No work may begin until the retainer has been paid in-full by the client. The type of contingency fee agreement requires us to carefully select contingency fee cases. Depending on the type of arrangement made, a retainer payment may be requested to get working on the matter. l0R$E.Z}3U3WH#3TDs;f\vU/2KUoVkWQC7;gTjy8j2,uzW8@Ap-5M tn/`F($"2F8-.!jG^icz^k:n7siy5)j!A$3r`
c=8op#s6F(X`LiPc -~6j#3S}O"9D(1w$Fb"#_2L}!2R:I9OMh6-JKhZvJ;]]/C8Sl2s+/tEt+(3fe\#Yt*dvT@=^adqwQ*D?i]@\DxaY.WS^-n_4^!6PT"S=L~V*~fZqFk}+bRoQ1=KtAAtNz#Bf!NDbI|Dk," Xx[Wrm6LD4^w6#\+-6bZJcY?R{/YsX!^#oV#5*[uY'jx8~w$0iIuoQ
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Free Retainer Agreement (Attorneys / Lawyers) - PDF - eForms | Last updated November 30, 2018. E}E2RqHKKEg>eS06EO*r6WdlWK'_!,[^*A36=n'hkTET^(+J59zrxH)"~n}W6\[qt4iFG!4Zw*Siij?69y-OkMB}MJ e-X=wu^ZPtL\(d$EUj\'ygE1y:U} Z\Jox]:p]^)q>tn:'[Rz"v9sr!. (Arnall v. Superior Court (2010) 190 Cal.App.4th 360, 369.) As long as the hybrid arrangement does not constitute a double fee, it should be permissible. A contingency fee is mostly used when hiring an attorney to represent a client in a civil case. Indeed, the Firm and the Client specifically anticipate that after full or partial recovery is made on account of the Case the Firm will issue Further Accounts seeking additional payment for work previously billed and paid as Minimum Fees. keys to navigate, use enter to select, Stay up-to-date with how the law affects your life. The Service Provider acknowledges that disclosure to a third (3rd) party or misuse of this proprietary or confidential information would irreparably harm the Client. ,c.%6n iN]y;uRc/o$a'S1MBFyj-M}TR]%x]QcA=!ZVfa(vKvg 5&u3yB/m00=./DFM[G"BfQ[xB>4P===Wjg`Pg4Q5AYGnOQ There is a recent case where the court determined, as a matter of first impression, that a hybrid fee agreement was a "contingency fee agreement" subject to all the statutory requirements. U@\7B].S!*-n:ZoU.);P8~{}q5br0F` vtyr#vDz(E4n!_iU;sI! No. [NAME AND ADDRESS OF LAW FIRM]. Popular for personal injury but can be for any case where the client has . ENTIRE AGREEMENT. A charging lien in this circumstance is considered an adverse interest requiring compliance with that rule. Attorney Removal to indicate how much money the Attorney will be paid for every one hour of work on the Clients case should the Client determine the Attorneys services are no longer required. This is often seen in the legal and consulting industries. %PDF-1.3
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Once the legal services have been provided to the success of the Client, the Attorney will be entitled to collect the promised contingency payment. HVOA~|K"^4=F0w0w+W;;o=qaHKpfLrt The Service Provider is: (check one). Client agrees that Lawyer cannot promise or guarantee a particular result. Download: Adobe PDF, Microsoft Word (.docx), Open Document Text (.odt). In addition, looking up recent cases to see who is currently active in the industry is a great option. 0000005329 00000 n
The Service Provider recognizes that they shall be liable for all work performed by the Subcontractor and shall hold the Client harmless of any liability in connection with their performed work. 3. 5. A clause in a retainer agreement prohibiting the client from settling or dismissing his lawsuit without the consent of his attorney is void as against public policy. Copyright HW]sH}W2U?2Tblh2Xb%n 19N&!Ij"_:_Tg/O^MI/KNl3fm|_D%-lv|%d>bti&?hlbmQG7*R4zSECn#ksMFHC_wgRRKzSVm2/iL(&/1w+cw*nZR_iUUM 4. Service Provider shall release, defend, indemnify, and hold harmless Client and its officers, agents, and employees from all suits, actions, or claims of any character, name, or description. Standard (Average) Contingency Fee By law, fee agreements with your lawyer must be in writing when the lawyer anticipates fees and costs for your case to total $1,000 or more. Reimbursed for ONLY the following expenses: [EXPENSES]. Client agrees to pay Lawyer's fee for professional services as follows: ______ percent of any settlement or recovery, and _______ if the case is appealed. %%EOF
That rule requires fair and reasonable terms, full disclosure in writing, written advice to consult independent counsel (and a reasonable opportunity for the client to do so), and the clients written consent. (Id. Download: Adobe PDF, MS Word (.docx), OpenDocument, Step 1 Acquire Your Copy Of The Contingency Agreement Through This Site. %PDF-1.6
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In the right case, we and our clients can benefit from a contingency fee agreement as our interests align with those of the client. The hybrid has several advantages. The pages above explain how a lawyer and client may agree to a hybrid fee agreement under which the lawyer is paid a low hourly fee as the claim proceeds and is then paid a bonus if there is good recovery on the clients claim. Finally, if an attorney fails to comply witany provision of h the statute, the fee agreement becomes voidable at the client's option and the attorney is only entitled to a reasonable fee. V9TAqP}"`,O )9h:6Lk3`vILb7m~.R SUITE 100, 1000 MAIN STREET . However, it does not invalidate the underlying fee agreement or preclude the attorney from otherwise recovering the agreed-upon contractual fee. %AgXR(5Op2mcCoay~GBtv
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]VRhNgAqp;S/4uMms|V^@g$%F^ ;wmG0"f]]u>6c:wA=+^w\` Service Providers Signature _________________________ Date _______________, Clients Signature _________________________ Date _______________, For the comprehensive document, please download the free form or hit create document.. The above wording is merely an example and the figures would need to be adjusted for each particular case by taking into account the lawyers normal hourly rate, the clients ability to pay a base hourly rate, and each of the lawyers and clients willingness to accept risk. .
MCLE Self Study | Current MCLE Article - apps.calbar.ca.gov Authority to Represent and Contingency Fee Agreement Client Engagement Letter Conflict Waiver Joint Representation of Multiple Clients Contract for Legal Services - Sample 1 Contract for Legal Services - Sample 2 Fee Agreement Fee Contract Clause - Consent to Arbitration * Follow up Representation Letter to Initial Interview No other agreement, written or oral, exists, and discussions between Client and Lawyer that are not set forth in this agreement are not part of this agreement.
PDF Sample Written Fee Agreements Forms Instructions and Comments Introduction H\@}&?-np1?3IbzOOXq \o7B}44cc^&C:u}1B59wx):?uoa^(m~wtNfam:}_mmH_i.m&ze,Rn;+ya 2"1gdi09b#sD3pF:#g3p In practical terms, such an acknowledgement can be inserted into the agreement along with a place for the client to initial that he read and understood his right to consult with another lawyer and, nonetheless, has agreed to the charging lien.
What Is a Retainer and Contingency Agreement? | LegalMatch Client agrees to cooperate with Lawyer, assist Lawyer with preparing the case as Lawyer requests. The first signature area devoted to this task is set for the Client. For example, an experienced trial attorney may command $400 per hour. This is common with companies that seek constant advice from accountants, attorneys, or other professionals whose services are needed on a continued basis.
PDF Motion And, If Filed, Determined in The District Court of Appeal of (1974) 11 Cal.3d 558, 563; see, also, Tarver v. State Bar of Cal. The Service Provider may assign rights and may delegate duties under this Agreement to other individuals or entities acting as a subcontractor (Subcontractor). 0000001040 00000 n
For a simple breach of contract, our success fee percentages can vary from 20-25% to 33 1/3% of the refund. 0000000016 00000 n
Learn more about FindLaws newsletters, including our terms of use and privacy policy. Mr. Goldberg is an experienced trial attorney and has extensive insurance coverage experience. We cannot accept or agree to make every case on a contingency basis every emergency offered to us.
PDF GUIDEBOOK TO PRACTICE FORMS AND LETTERS Fee Agreements Los Angeles, California 90067 (323) 403-5900. ch c8%p%J(To \|sT*G2T=k]b;va_@g?A/8gyj]EyX'QZQ^D|#6( }>>v>um1o.deV-4 Moreover, many business litigation cases simply stall as the pre-trial hourly attorney fees escalate beyond the clients ability to pay. Download: Adobe PDF, MS Word, OpenDocument.