Could a Missouri lawyer include a binding arbitration clause in an engagement letter?

Plain-English summary

A lawyer asked whether a binding arbitration clause could be included in an engagement letter or representation agreement. The proposed agreement would place the warning required by section 435.460, R.S.Mo., above the signature line.

The opinion said including the clause would not violate the Rules of Professional Conduct. It added that the lawyer's duty of communication under Rule 1.4 required ensuring clients were aware of and understood the provision.

Currency note

This 1996 opinion predates Missouri's 2007 amendments to its Rules of Professional Conduct. An official reference note identifies July 1, 2007 amendments to Rules 4-1.9 and 4-1.10. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context and verify current rules before relying on it.

Common questions

Q: Did the opinion prohibit a binding arbitration clause?

A: No. It said including one in the lawyer's contract with clients would not violate the Rules of Professional Conduct.

Q: What communication did the opinion require?

A: Under Rule 1.4, the lawyer had to ensure clients knew about and understood the clause.

Background and rules framework

The opinion addressed the proposed clause with the statutory warning described in the question and applied the lawyer's Rule 1.4 communication duty to the client's awareness and understanding of the clause. It did not interpret the statute's requirements beyond mentioning the warning.

Citations and references

Rules of Professional Conduct:

• Missouri Rule 1.4

Statutes:

• Section 435.460, R.S.Mo.

See also

• Missouri Informal Op. 990130: Binding fee arbitration clause

Source

• Landing page: https://mo-legal-ethics.org/informal-opinion/960066/

Original opinion text

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

QUESTION: Attorney asks whether it will violate the rules if Attorney includes a binding arbitration clause in the engagement letter or representation agreement. Attorney will include the warning clause required by section 435.460, R.S.Mo., above the signature line. ANSWER: Attorney will not violate the Rules of Professional Conduct by including a binding arbitration clause in Attorney´s contractual arrangement with Attorney´s clients. Attorney´s duty of communication, under Rule 1.4, requires Attorney to make certain that Attorney´s clients are aware of the provision and understand it.