Could an engagement letter say the lawyer would stop all work if the client missed payments?

Plain-English summary

A lawyer wanted an engagement term allowing work to stop when the client failed to pay.

The opinion rejected the term. Rule 4-1.3 required diligence unless the lawyer withdrew. The lawyer could continue working and seek payment or seek withdrawal under Rule 4-1.16(b), but only if withdrawal would not materially harm the client.

Currency note

This opinion was issued in 2000, before Missouri’s 2007 revisions to the Rules of Professional Conduct. Later amendments or opinions may have changed the analysis. Treat this page as historical context and verify current rules before relying on it. The official Rule 4-1.9 and 4-1.10 reference notes identify July 1, 2007 amendments.

Common questions

Q: Could the lawyer simply stop work for nonpayment?

A: No. The opinion rejected that engagement term.

Q: When could withdrawal be sought?

A: Under Rule 4-1.16(b), if it could be accomplished without material adverse effect on the client.

Background and rules framework

The opinion applied Rule 4-1.3 to ongoing diligence and Rule 4-1.16(b) to withdrawal.

Citations and references

Missouri Rules of Professional Conduct:

• Rule 4-1.3
• Rule 4-1.16

See also

• Missouri Informal Op. 2011-08: Unpaid Expenses

Source

• Landing page: https://mo-legal-ethics.org/informal-opinion/20000172/

• Rule revision reference: Missouri Informal Opinion 20030007

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

QUESTION: Attorney would like to add a provision to Attorney´s standard engagement letter for civil cases, particularly domestic relations cases. Is it permissible to state in the engagement letter that if the client does not make payment, Attorney will stop working on his or her case? Attorney would like to state that Attorney will not continue to work on a client´s case if no payments are made.

ANSWER: Attorney may not include the provision Attorney proposes in Attorney´s engagement letter. Under Rule 4–1.3, Attorney has an obligation to diligently represent Attorney´s client, unless Attorney withdraws. If Attorney has not been paid, Attorney´s option is to continue to diligently represent the client and seek payment, or seek to withdraw. Attorney may seek to withdraw under Rule 4–1.16(b), only if withdrawal may be accomplished without material adverse effect on the interests of the client.