Who owns court-awarded attorney fees when the lawyer is employed by a nonprofit, and can they be deposited into the nonprofit's general account?

Plain-English summary

An attorney employed by a non-profit asked whether it would violate RPC 5.4 if attorney fees awarded to the attorney were deposited into the non-profit group's general account. The committee answered by addressing ownership of the fee award rather than the deposit mechanics.

The committee was of the opinion that attorney fee awards belong to the client, not the attorney, unless the attorney and the client mutually agree otherwise.

Currency note

This opinion was issued in 1994, before the Washington State Bar Association's adoption of the 2006 revisions to the 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 Treat this page as historical context, not current guidance.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: Who owns a court-awarded attorney fee, the lawyer or the client?

A: The committee said attorney fee awards belong to the client, not the attorney, unless the attorney and the client mutually agree otherwise.

Q: Can a nonprofit deposit a fee award into its general account?

A: The committee answered the question by stating that the fee award belongs to the client absent a mutual agreement otherwise, rather than approving deposit into the group's general account.

Background and rules framework

The inquiry was framed under RPC 5.4 (ABA Model Rule 5.4), which protects a lawyer's professional independence and restricts sharing legal fees, in the setting of a lawyer employed by a non-profit. The committee resolved the question on ownership: the fee award is the client's property unless the lawyer and client agree otherwise.

Citations and references

Rules of Professional Conduct:

• ABA Model Rule 5.4 (professional independence of a lawyer); Washington RPC 5.4

See also

• WA Ethics Op. 1143: Salaried Lawyer Billing Nonprofit Members
• WA Ethics Op. 1211: Fee Splitting With a Service Center

Source

• Landing page: https://ao.wsba.org/print.aspx?ID=651

Original opinion text

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

Advisory Opinion: 1570
Year Issued: 1994
RPC(s): RPC 5.4
Subject: Deposit of attorney fee awards into client's bank account

I have been instructed by the Rules of Professional Conduct Committee to respond to your inquiry regarding the disposition of attorney's fees by an attorney/employee of a non-profit employer. Specifically, you ask whether it is a violation of RPC 5.4 if attorney fees awarded to an attorney employed by a non-profit group are deposited into the group's general account. It was the opinion of the RPC Committee that attorney fee awards belong to the client, not the attorney, unless the attorney and the client mutually agree otherwise.