Can a North Carolina lawyer bill the client for the time spent responding to a fee dispute petition filed with the State Bar?

Plain-English summary

Rule 1.5(f) of the Revised Rules of Professional Conduct required a lawyer with a fee dispute to advise the client of the State Bar's fee dispute resolution program at least 30 days before suing to collect, and to participate in good faith if the client submitted a proper request. After a client filed a fee dispute petition, the lawyer sent a written response to the State Bar and added $1,150 to the client's bill for the time and expense of drafting that response. The committee was asked whether the lawyer could charge the client for participating in the program.

The opinion concluded the lawyer could not. Participation in the fee dispute resolution program is not a legal service the lawyer provides to the client; instead, Rule 1.5(f) mandates participation, in good faith, when the client requests it. The program reduces the harm from fee disputes and helps prevent grievances, and the committee characterized participation as a professional responsibility advancing the interests of the public and the Bar. Charging the client for the time spent participating was therefore improper. The opinion also pointed to the State Bar's own rule, 27 N.C.A.C. 1D, Section .0702, providing that the program is offered to clients and their lawyers at no cost.

Currency note

This opinion was issued in 2000, before North Carolina's adoption of the 2003 revisions to the Rules of Professional Conduct, and it cites the fee rule under the numbering then in effect (Rule 1.5(f)) and the administrative rule at 27 N.C.A.C. 1D, Section .0702. Subsequent rule amendments may have changed the numbering or the program's procedures. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific requirement mentioned here.

Common questions

Q: Can a North Carolina lawyer bill the client for time spent responding to a fee dispute petition?

A: No. The opinion held that responding to a fee dispute petition is not a legal service to the client, so the lawyer may not charge the client for the time spent on it.

Q: Why is participating in the program not billable?

A: The opinion held that Rule 1.5(f) makes participation a mandatory professional responsibility, in good faith, that advances the interests of the public and the Bar, rather than a service rendered to the client.

Q: Does the fee dispute resolution program cost anything?

A: No. The opinion cited 27 N.C.A.C. 1D, Section .0702, which provides that the program is offered to clients and their lawyers at no cost.

Background and rules framework

The opinion applied North Carolina Rule 1.5 (fees), the analogue to Model Rule 1.5, specifically the then-existing subsection 1.5(f) requiring lawyers to notify clients of the fee dispute resolution program and to participate in good faith. It also relied on the State Bar administrative rule at 27 N.C.A.C. 1D, Section .0702, which establishes the program and provides that it is offered at no cost.

Citations and references

Rules of Professional Conduct:

• MR 1.5 (fees) / NC Rule 1.5(f)

Other authority:

• 27 N.C.A.C. 1D, Section .0702: the State Bar shall implement a fee dispute resolution program offered to clients and their lawyers at no cost

See also

• NY State Bar Op. 1165: Disputed Fees in a Trust Account
• NY State Bar Op. 567: Retaining Lien and Fee Dispute Litigation
• NY State Bar Op. 1118: Disclosing Confidences to Collect a Fee

Source

• Landing page: https://www.ncbar.gov/for-lawyers/ethics-and-governing-rules/ethics-opinions/opinions/2000-formal-ethics-opinion-7/

Original opinion text

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

Inquiry:

Rule 1.5(f) of the Revised Rules of Professional Conduct requires a lawyer with a fee dispute with a client to participate in the North Carolina State Bar's program of fee dispute resolution. The rule provides as follows:

(f) Any lawyer having a dispute with a client regarding any fee for legal services must: (1) make reasonable efforts to advise his or her client of the existence of the North Carolina State Bar's program of fee dispute resolution at least 30 days prior to initiating legal proceedings to collect the disputed fee; and (2) participate in good faith in the fee dispute resolution process if the client submits a proper request.

Client filed a fee dispute petition with the State Bar. Client's lawyer, Attorney A, sent his written response to the State Bar. Attorney A also added $1,150 to Client's bill for the time and expense associated with drafting the response to the fee dispute petition. May Attorney A charge Client for the time expended in preparing a response to a fee dispute petition or otherwise participating in the fee resolution program of the State Bar?

Opinion:

No. Participation in the fee dispute resolution program is not a legal service that the lawyer provides to the client. Rather, Rule 1.5(f) mandates participation in the program if requested by a client. Moreover, the rule mandates that a lawyer participate in good faith. The program minimizes the adverse effects of fee disputes with clients and helps to prevent the filing of grievances against lawyers. Participation is a professional responsibility that advances the interests of the public and the Bar, and it is improper for a lawyer to charge a client for the time expended to participate. See also 27 N.C.A.C 1D, Section .0702 ("The State Bar shall implement a fee dispute resolution program...which shall be offered to clients and their lawyers at no cost")