Can a lawyer charge interest on a client's unpaid balance for legal fees or costs?
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This page answers the general question as of 1992. Ezel answers yours: whether it's allowed on your facts, under the current Hawaii Rules of Professional Conduct, with citations.
Plain-English summary
The opinion addressed whether an attorney may charge interest on a client's outstanding account. It concluded that an attorney may ethically charge interest on unpaid balances for legal services rendered or costs incurred, to the extent permitted by law.
The opinion stated that it superseded Formal Opinion No. 75-3-3 (1975).
Currency note
This opinion was issued in 1992, before the Hawaii Supreme Court's adoption of the current Hawaii Rules of Professional Conduct (the HRPC took effect in 1994 and were substantially revised in 2014). Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule, deadline, or requirement mentioned here.
Common questions
Q: Can a Hawaii lawyer charge interest on a client's unpaid bill?
A: The opinion concluded that an attorney may ethically charge interest on unpaid balances for legal services rendered or costs incurred, to the extent permitted by law.
Q: Did this opinion change earlier guidance?
A: Yes. The opinion stated that it superseded Formal Opinion No. 75-3-3 (1975).
Citations and references
Other opinions cited:
- Formal Opinion No. 75-3-3 (1975): superseded by this opinion.
See also
Source
- Landing page: https://dbhawaii.org/legal-ethics-advice-for-hawaii-lawyers/
- Original PDF: https://dbhawaii.org/wp-content/uploads/FO_32_-_CHARGING_INTEREST_ON_CLIENT_S_OUTSTANDING_ACCOUNT.pdf
Original opinion text
Best-effort transcription from a scanned PDF. Minor errors may remain; the linked PDF is authoritative.
Office of Disciplinary Counsel
Supreme Court, State of Hawaii
1164 Bishop Street, Suite 600
Honolulu, Hawaii 96813
Telephone (808) 521-4591
FORMAL OPINION NO. 32
An attorney may ethically charge interest on unpaid balances for legal services rendered or costs incurred to the extent permitted by law.
This Opinion hereby supersedes Formal Opinion No. 75-3-3 (1975).
DATED: Honolulu, Hawaii, December 11, 1992.
Dwight M. Rush
Chairperson, Disciplinary Board
Gerald H. Kibe
Chief Disciplinary Counsel
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