Can a law firm turn delinquent fee accounts over to a collection agency to recover unpaid fees from former clients?

Plain-English summary

A law firm asked whether it could turn its delinquent accounts over to a collection agency to recover attorneys' fees from former clients. The committee answered no. Its starting premise was that the legal profession is a learned profession and not a money-getting trade, so a lawyer should avoid suing a client for a fee so far as is compatible with self-respect and the right to reasonable recompense, resorting to suit only to prevent injustice, imposition, or fraud (EC 2-23; ABA 250 (1943)).

Reading EC 2-23 to require a lawyer to be zealous in avoiding fee controversies and to attempt to resolve them amicably, the committee concluded that the use of a collection agency to recover attorneys' fees was inconsistent with the dignity and honor of the legal profession and was therefore improper.

Currency note

This opinion was overruled by N.Y. State 608 (1990); its conclusion no longer reflects the committee's position. It was also issued in 1975, before New York replaced the Code of Professional Responsibility with the Rules of Professional Conduct in 2009. Treat this page as historical context, not current guidance. Verify against current rules and the later opinion before relying on any specific rule or requirement mentioned here.

Common questions

Q: Did this opinion let lawyers use collection agencies for unpaid fees?

A: No. The committee held that using a collection agency to recover attorneys' fees was improper. Note that this opinion was overruled by N.Y. State 608 (1990), so its conclusion is no longer the committee's position.

Q: What was the committee's stated reason?

A: It viewed the practice as inconsistent with the dignity and honor of the legal profession, framing law as a learned profession rather than a money-getting trade (EC 2-23).

Q: Did the opinion address suing a client directly?

A: It noted that a lawyer should avoid suing a client for a fee except to prevent injustice, imposition, or fraud, citing EC 2-23 and ABA 250 (1943).

Background and rules framework

The opinion rested on EC 2-23 of the then-current New York Code of Professional Responsibility, which counseled lawyers to avoid fee controversies and resolve them amicably. The subject matter of fee collection now falls under Rule 1.5 (fees) in the Rules of Professional Conduct, and the committee's 1975 conclusion was superseded by N.Y. State 608 (1990).

Citations and references

Rules of Professional Conduct:

• MR 1.5 (fees)
• NY EC 2-23

Other opinions cited:

• ABA 250 (1943): a lawyer should avoid suing a client for a fee except to prevent injustice
• N.Y. State 608 (1990): the later opinion overruling this one

See also

• NY State Bar Op. 399: Charging interest on delinquent fee accounts
• NY State Bar Op. 414: Advance division of fees between lawyers

Source

• Landing page: https://nysba.org/opinion-400/