I was discharged before my contingency-fee case ended and I'm holding a big escrow sum for the client, who hasn't paid me. What can I recover and what do I do with the funds?
Apply this to your situation
This page answers the general question as of 1991. Ask about yours and see what the current Rhode Island Rules of Professional Conduct say for your facts, with citations.
Plain-English summary
The inquiring attorney had been discharged by the client before final resolution of a matter undertaken on a contingency fee basis, and held a substantial sum of money in an escrow account on behalf of that client. The client had not yet compensated the attorney for the legal services rendered.
On the amount of recovery, the panel referred to its General Informational Opinion #4, in which it stated that the proper measure of recovery for an attorney engaged on a contingency fee basis who is discharged, with or without cause, before final resolution of the matter is the reasonable value of the services performed for that client.
On the disposition of the funds, the panel stated that Rhode Island Rule of Professional Conduct 1.15 controls the escrow funds. Under Rule 1.15, where a lawyer possesses property in which both the lawyer and another person claim interests, the property must be kept separate until an accounting and severance of interests, and if a dispute arises the disputed portion must be kept separate until the dispute is resolved.
Currency note
This opinion was issued in 1991, after the Rhode Island Supreme Court adopted the Model Rules of Professional Conduct effective November 15, 1988, and it applies Rule 1.15 as originally adopted. The Rhode Island Supreme Court later revised the Rules of Professional Conduct in 2007 as part of the nationwide Ethics 2000 process, which renumbered and amended several provisions. 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 Treat this page as historical context, not current guidance.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 mentioned here.
Common questions
Q: How much can I recover if I'm discharged from a contingency case before it ends?
A: Per the opinion, the panel referred to its General Informational Opinion #4, which sets the measure of recovery at the reasonable value of the services performed, whether the discharge was with or without cause.
Q: What do I do with the client's escrow funds?
A: Per the opinion, Rule 1.15 controls; the attorney must keep the disputed portion separate until the dispute is resolved.
Q: Does it matter whether I was discharged for cause?
A: Per the opinion's reference to General Informational Opinion #4, the reasonable-value measure applies whether the discharge was with or without cause.
Background and rules framework
The opinion applies Rule 1.15 (Safekeeping Property), corresponding to Model Rule 1.15, to the disposition of the escrow funds, requiring that a disputed portion be kept separate until the dispute is resolved. For the measure of the fee, it relies on the panel's own General Informational Opinion #4, which sets the recovery of a discharged contingency-fee attorney at the reasonable value of services rendered.
Citations and references
Rules of Professional Conduct:
- MR 1.15 (safekeeping property)
- RI RPC 1.15
Statutes:
- None cited.
Cases:
- None cited.
Other opinions cited:
- RI EAP General Informational Opinion #4: the measure of recovery for a discharged contingency-fee attorney is the reasonable value of the services performed.
See also
- RI EAP Op. 91-53: Disputed Fees Held in an Escrow Account
- RI EAP Op. 91-49: An Attorney's Lien Recorded in the Land Records
Source
- Landing page: https://www.courts.ri.gov/attorney-resources/Pages/Ethics-Advisory-Panel-default.aspx
- Original PDF: https://www.courts.ri.gov/Opinions/EAP%2091-56.pdf
Original opinion text
Best-effort transcription from a scanned PDF. Minor errors may remain; the linked PDF is authoritative.
Digest of Ethics Advisory Panel
Opinion #91-56, Request #174
Issued August 16, 1991
An attorney seeks Panel advice concerning the attorney's ethical obligations under circumstances in which the attorney has been discharged by the client before final resolution of a matter undertaken on a contingency fee basis. The attorney indicates he/she holds in an escrow account a substantial sum of money on behalf of this client. The client has not yet compensated the attorney for rendering legal services.
As far as the amount of recovery to which the attorney is entitled is concerned, the Panel refers to its General Informational Opinion #4 in which it stated that the proper measure of recovery for an attorney engaged on a contingency fee basis who is discharged with or without cause, prior to final resolution of the matter is the reasonable value of the services performed for that client.
Rhode Island Rules of Professional Conduct 1.15 controls the disposition of funds the attorney holds in escrow on behalf of the client. Rule 1.15 provides in pertinent part:
When in the course of representation a lawyer is in possession of property in which both the lawyer and another person claim interests, the property shall be kept separate by the lawyer until there is an accounting and severance of their interests. If a dispute arises concerning their respective interests, the portion in dispute shall be kept separate until the dispute is resolved.
What do the rules say today, for your facts?
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