Can a lawyer bill a client for a contract lawyer's time at a higher rate than the contract lawyer is paid?

Short answer The committee concluded that an arrangement in which a lawyer employed a contract lawyer hourly, paid the contract lawyer before billing the client, and charged the client more than the contract lawyer's rate, complied with RPC 1.5(e) on division of fees.

Bar

WSBA

Issued

1986

Apply this to your situation

This page answers the general question as of 1986. Ask about yours and see what the current Washington Rules of Professional Conduct say for your facts, with citations.

Disclaimer: Advisory only. Not binding precedent.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official ethics opinion. The original opinion (linked on this page) is the authoritative source for any reliance.

Plain-English summary

The arrangement before the committee was one in which a lawyer employed a contract lawyer on an hourly basis and charged the client for the contract lawyer's time at a rate in excess of what the lawyer paid the contract lawyer. The lawyer paid the contract lawyer before billing the client.

The committee was of the opinion that this proposed arrangement to share fees with another lawyer was in compliance with RPC 1.5(e).

Currency note

This opinion was issued in 1986, before the 2006 revisions to the Washington Rules of Professional Conduct. RPC 1.5(e) on division of fees between lawyers was later renumbered and amended. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule, deadline, or requirement mentioned here.

Common questions

Q: Can a lawyer charge a client more for a contract lawyer's time than the contract lawyer is paid?

A: Under this opinion, yes. The committee was of the opinion that the proposed arrangement to share fees with another lawyer was in compliance with RPC 1.5(e).

Q: What was the structure the committee approved?

A: The lawyer employed the contract lawyer on an hourly basis, paid the contract lawyer before billing the client, and charged the client for the contract lawyer's time in excess of the rate paid.

Background and rules framework

The opinion applies Washington RPC 1.5(e) on division of fees between lawyers, corresponding to Model Rule 1.5. The committee treated billing a contract lawyer's time at a markup as a fee-division arrangement and found it complied with the rule on the facts presented.

Citations and references

Rules of Professional Conduct:

Washington RPC 1.5(e) (division of fees between lawyers), corresponding to Model Rule 1.5.

Source

Landing page: https://ao.wsba.org/print.aspx?ID=150

Original opinion text

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

Advisory Opinion: 1039
Year Issued: 1986
RPC(s): RPC 1.5(e)
Subject: Division of fees; billing for contract lawyer's time at higher rate

A lawyer employs a contract lawyer on an hourly basis and charges his client's for the contract lawyer's time in excess of the rate he pays the contract lawyer. The lawyer pays the contract lawyer before billing the client. The Committee was of the opinion that your proposed arrangement to share fees with another lawyer is in compliance with RPC 1.5(e).

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