Can a lawyer who is paid a monthly retainer by a collection agency remit half of the court-awarded attorney fees back to the agency?
Apply this to your situation
This page answers the general question as of 1990. Ezel answers yours: whether it's allowed on your facts, under the current rules of professional conduct in your state, with citations.
Plain-English summary
The committee understood the facts to be that the lawyer's client, a collection agency, paid the lawyer a monthly retainer for a case. On matters that go to court, the lawyer would normally be awarded attorney fees between $100 and $300, and would remit one-half of the court-awarded fees to the client.
The committee was of the opinion that this would be improper fee sharing prohibited by RPC 5.4. It was also concerned that such conduct might involve misleading representations to the court regarding the lawyer's fees.
Currency note
This opinion was issued in 1990, before the Washington State Bar Association's adoption of the 2006 revisions to the Washington Rules of Professional Conduct. 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 Treat this page as historical context, not current guidance.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, deadline, or requirement mentioned here.
Common questions
Q: Can a lawyer pay part of the court-awarded fee back to a collection-agency client?
A: Under this 1990 opinion, no. The committee was of the opinion that remitting half of the court-awarded fees to the collection-agency client would be improper fee sharing prohibited by RPC 5.4.
Q: Why was the court a concern here?
A: The committee was also concerned that the arrangement might involve misleading representations to the court regarding the lawyer's fees, since the lawyer would not be keeping the full awarded amount.
Background and rules framework
RPC 5.4, Washington's version of ABA Model Rule 5.4, protects a lawyer's professional independence and restricts sharing legal fees with a nonlawyer. The committee applied it to a lawyer who, while on a monthly retainer from a collection agency, would hand back half of the fees a court awarded, concluding that this was improper fee sharing and separately raised a candor concern about how the fees were represented to the court.
Citations and references
Rules of Professional Conduct:
- ABA Model Rule 5.4 (professional independence of a lawyer; sharing fees with a nonlawyer)
- Washington RPC 5.4
See also
- WA Ethics Op. 1331: Sharing a Fee With the Executrix to Conceal Her Compensation
- WA Ethics Op. 1297: Lawyer in a Paid Referral Package
Source
- Landing page: https://ao.wsba.org/print.aspx?ID=412
Original opinion text
Reproduced from the official source for research purposes. The linked source is authoritative.
The Committee understood the facts of your inquiry to be that your client, a collection agency, paid you a monthly retainer for a case. On matters that go to court, you would normally be awarded attorney's fees between $100 and $300, and you would remit one-half of the court awarded fees to your client. The Committee was of the opinion that this would be an improper fee sharing prohibited by RPC 5.4. The Committee was also concerned that such conduct might involve misleading representations to the court regarding your fees.
Get today's answer for your situation
You just read a 1990 opinion on this question. Ezel checks the current rules of professional conduct in your state and answers your specific situation, with citations.
Opens in Ezel Pro. Every answer cites the rules it relies on.