Can a law firm share fees with a lawyer who was later disbarred, including on contingent-fee cases?

Plain-English summary

A lawyer asked about sharing fees with a disbarred lawyer. The committee first directed that previous committee opinions on the topic be forwarded to the inquirer, citing Informal Opinion 1273 and Formal Opinion 184.

The committee was of the opinion that anything legally earned by the disbarred lawyer prior to the date of his suspension or disbarment, whichever came first, could properly be distributed to the lawyer. As to contingency-fee cases, the committee noted that it is a question of law when fees are earned or credited, and it was of the opinion that the disbarred lawyer would be entitled only to his quantum meruit share of any such fee, up to the date of suspension or disbarment only.

Currency note

This opinion was issued in 1995, 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 Treat this page as historical context, not current guidance.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. Washington's RPC 5.4 corresponds to ABA Model Rule 5.4 (professional independence of a lawyer).

Common questions

Q: Can a firm pay a disbarred lawyer fees for work done before disbarment?

A: The committee was of the opinion that anything legally earned by the disbarred lawyer before the date of suspension or disbarment, whichever came first, could properly be distributed to the lawyer.

Q: How are contingent fees treated when the lawyer is later disbarred?

A: The committee said that when fees are earned or credited on contingency cases is a question of law, and that the disbarred lawyer is entitled only to a quantum meruit share up to the date of suspension or disbarment.

Background and rules framework

The opinion addressed RPC 5.4 (professional independence of a lawyer, corresponding to ABA Model Rule 5.4), which governs the division of fees with persons no longer authorized to practice. The committee drew the line at the date of suspension or disbarment, whichever came first, and limited any contingent-fee share to quantum meruit for work performed up to that date.

Citations and references

Rules of Professional Conduct:

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

Other opinions cited:

• WSBA Informal Opinion 1273: fee sharing with a disbarred lawyer
• WSBA Formal Opinion 184: fee sharing with a disbarred lawyer

See also

• WA Ethics Op. 1644: Profit-Sharing Plan With Nonlawyer Staff
• WA Ethics Op. 1638: Collecting Claims Owned by a Collection-Agency Client

Source

• Landing page: https://ao.wsba.org/print.aspx?ID=725

Original opinion text

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

Advisory Opinion: 1642
Year Issued: 1995
RPC(s): RPC 5.4
Subject: Division of fees with disbarred lawyer

The Committee reviewed your inquiry regarding the sharing of fees with a disbarred lawyer. First, the Committee directed that I forward to you some previous Committee opinions on this topic [Informal Opinion 1273; Formal Opinion 184] . Next, the Committee was of the opinion that anything legally earned by the disbarred lawyer prior to the date of his suspension or disbarment, whichever came first, could properly be distributed to the lawyer. As to contingency fee cases, it is a question of law when fees are earned or credited. The Committee is of the opinion that the disbarred lawyer would be entitled only to his quantum meruit share of any such fee up to the date of suspension or disbarment only.