Can a lawyer bill clients for computerized legal research like Lexis or Westlaw, and may a firm use a cost formula to do it?

Plain-English summary

The committee was asked how a lawyer may appropriately charge clients for computerized legal research (CLR) performed through services such as Lexis or Westlaw. Noting that no prior ethics opinion or disciplinary rule in Illinois or elsewhere had addressed the question, the committee drew general guidance from former Rule 2-106(a), which barred illegal or excessive fees, and Rule 2-106(b), which listed factors bearing on a fee's reasonableness.

The committee explained that a lawyer should not invoice for the necessary expenses of a properly equipped office, but a client may be expected to bear reasonable additional expenditures required by diligent representation. It placed CLR in the latter category, an expense that may be itemized and billed apart from ordinary overhead, citing Rao v. Noferi and Kentucky Bar Association v. Graves. It cautioned that, in a contingent-fee matter, the client must be informed in advance whether CLR expenses are deducted before or after the contingent fee is calculated, under former Rule 2-106(c)(2).

Because monthly CLR invoices do not allocate costs per client, the committee accepted that a lawyer may use a formula to estimate and charge CLR as an expense, provided the formula reasonably reflects the firm's actual cost, meaning expenses directly attributable to providing CLR rather than the cost of a properly equipped office. As an alternative, a firm may treat CLR as absorbed overhead factored into its standard fees, which does not violate the rules so long as the ultimate fee is reasonable under Rule 2-106(a) and (b).

Currency note

This opinion was issued in January 1986, under the former Illinois Code of Professional Responsibility and before Illinois adopted the 1990 (and later 2010) Rules of Professional Conduct. The ISBA Board of Governors affirmed the opinion in July 2010 as generally consistent with the 2010 Rule (Rule 1.5), while cautioning that the specific standards referenced may differ from the 2010 Rules. 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 Treat this page as historical context, not current guidance.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 or requirement mentioned here.

Common questions

Q: Can a lawyer bill clients separately for Lexis or Westlaw research?

A: The opinion concluded yes; the committee treated computerized legal research as an additional expense of diligent representation that may be itemized and billed apart from ordinary office overhead.

Q: Is a cost formula for allocating research charges acceptable?

A: Per the opinion, a lawyer may use a formula to estimate and charge CLR as an expense, provided the formula reasonably reflects the firm's actual cost of providing the research.

Q: Does charging for research as an expense raise any special issue in a contingent-fee case?

A: Yes. The committee said the client must be told in advance whether CLR expenses are deducted before or after the contingent fee is calculated, under former Rule 2-106(c)(2).

Background and rules framework

The opinion applied former Illinois Code Rule 2-106 (fees, including the bar on excessive fees, the reasonableness factors, and contingent-fee disclosure) and referenced Rule 1-102. The Board's 2010 affirmation maps the analysis to current Illinois Rule of Professional Conduct 1.5, corresponding to ABA Model Rule 1.5 on fees.

Citations and references

Rules of Professional Conduct:

• Illinois Code Rule 2-106(a), (b), (c)(2) (fees and expenses, applied in the opinion)
• Illinois Code Rule 1-102
• Illinois RPC 1.5 (2010 equivalent per the Board's affirmation)
• MR 1.5 (fees)

Cases:

• Rao v. Noferi, 269 N.Y.S.2d 534 (N.Y. App. Div. 1966), client bearing additional expenses of representation
• Kentucky Bar Association v. Graves, 556 S.W.2d 890 (Ky. 1977), charging clients for expenses

See also

• ISBA Ethics Op. 87-10: Interest on Overdue Legal Bills
• ISBA Ethics Op. 87-05: Paying and Reimbursing Witnesses

Source

• Landing page: https://www.isba.org/ethics/opinions/8509