May a Connecticut lawyer accept barter credits for legal services through a commercial exchange?
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This page answers the general question as of 2015. Ask about yours and see what the current Connecticut Rules of Professional Conduct say for your facts, with citations.
Plain-English summary
The exchange tracked credits earned from services and let members spend them with other members. The Committee concludes that accepting barter currency is not inherently prohibited because Rule 1.5 allows property as payment. The written engagement must explain the services, barter-payment terms, expenses, and a reasonable fee.
Uniform annual and purchaser-side processing charges are not fee sharing when they operate as membership fees or transaction surcharges rather than a percentage of the lawyer's fee. The exchange may not recommend the lawyer, influence intake or representation, solicit clients in person, or receive confidential representation information. Listings must be truthful and identify licensing limits.
The lawyer retains sole discretion to accept matters and must monitor exchange communications for compliance. Barter credits cannot simply be held as trust-account currency; the opinion's stated conditions exclude ordinary barter-funded advances and separately notes that any advance-payment arrangement requires a Rule 1.15(d) written agreement and compliance with Rule 1.15(b).
In practice
Under this opinion, barter changes the payment medium but not the lawyer's duties. The exchange must remain a neutral clearinghouse rather than a referral source, supervisor, recipient of client information, or means of avoiding fee, advertising, and safekeeping rules.
Common questions
Q: Must legal fees be paid in dollars?
A: No. Rule 1.5 permits property as payment, and the opinion treats barter credits as a substitute currency in most instances.
Q: Are the exchange's fees prohibited fee sharing?
A: Not when the annual fee is unrelated to legal fees and a uniform processing charge is imposed on the purchaser as a transaction surcharge.
Q: May the exchange recommend a participating lawyer?
A: No under the approved arrangement. Members seeking counsel receive a complete impartial list without recommendations.
Q: May the exchange see detailed invoices?
A: No. Rule 1.6 requires representation information to remain confidential and detailed invoices to go directly to the client.
Q: May the exchange control which matters the lawyer accepts?
A: No. The lawyer must retain unfettered discretion over intake and professional judgment.
Background and rules framework
Rules 1.5 and 1.8(a) govern noncash fees and business transactions; Rules 5.4 and 7.2 govern nonlawyer fees and recommendations; Rules 1.1, 1.6, 7.1, and 7.3 govern competence, confidentiality, advertising, and solicitation; and Rule 1.15 governs advances and safekeeping.
Citations and references
Connecticut Rules of Professional Conduct:
- Rules 1.1, 1.5, 1.6, 1.8(a), 1.15(b), 1.15(d), 5.4(a), 5.4(c), 5.5, 7.1, 7.2(c), and 7.3
Other opinions cited:
- ABA Formal Opinion 88-356, nonlawyer fee-sharing concerns
- New York State Bar Opinion 665, barter exchange safeguards
- Utah Ethics Advisory Opinion 97-05, barter processing charge
- North Carolina Formal Ethics Opinion 4 (2010), exchange fee
See also
- New York State Bar Op. 665: Barter exchange advertising and referral
- Utah Ethics Op. 97-05: Bartering legal services
- Virginia LEO 1035: Trade barter association
Source
- Landing page: Connecticut Bar Association Informal Ethics Opinions
- Original PDF: Informal Opinion 15-04
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