Can a lawyer bill costs as a flat percentage of the fee instead of itemizing them?

Plain-English summary

The inquirer asked whether a lawyer may ethically add a flat percentage amount to a client's bill, such as 2% or 3%, in lieu of specifically itemizing charges like long-distance phone calls, postage, copying, and faxes.

The committee opined that a lawyer may charge a flat percentage to a client's bill in lieu of itemization of costs if there is full prior disclosure to and the agreement of the client and the amount of the charge is reasonable.

Currency note

This opinion was issued in 2001, before the Washington State Bar Association's adoption of the 2006 revisions to the Rules of Professional Conduct. The fee rule, RPC 1.5, was revised in that process. 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 Treat this page as historical context, not current guidance.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 charge costs as a flat percentage instead of itemizing them?

A: Yes. The committee said a lawyer may add a flat percentage (for example, 2% or 3%) in lieu of itemizing costs, provided there is full prior disclosure to and agreement of the client and the amount is reasonable.

Q: What conditions did the committee attach?

A: Full prior disclosure to the client, the client's agreement, and a charge amount that is reasonable.

Background and rules framework

The opinion interprets Washington RPC 1.5 (corresponding to Model Rule 1.5), which governs fees and requires that a lawyer's fee be reasonable. The committee applied the rule's reasonableness and disclosure principles to allow a flat-percentage cost charge in place of itemized cost billing, conditioned on disclosure, client agreement, and a reasonable amount.

Citations and references

Rules of Professional Conduct:

• Model Rule 1.5 / Washington RPC 1.5 (fees; reasonableness)

See also

• WSBA Ethics Op. 1024: Contingent Fee and a Collection-Agency Client
• WSBA Ethics Op. 1230: Group of Clients Responsible for Costs
• WSBA Ethics Op. 1389: Forgiveness of a Client's Cost Debt

Source

• Landing page: https://ao.wsba.org/print.aspx?ID=1175

Original opinion text

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

Advisory Opinion: 1935
Year Issued: 2001
RPC(s): RPC 1.5
Subject: Use of percentage of attorney's fee to determine amount of costs to be charged to client

The inquirer asked the committee if a lawyer may ethically add a flat percentage amount to a client’s bill, e.g., 2% or 3%, in lieu of specific itemized charging of costs, such as long distance phone calls, postage, copying and faxes.

The committee opined that a lawyer may charge a flat percentage to a client’s bill in lieu of itemization of costs if there is full prior disclosure to and the agreement of the client and the amount of the charge is reasonable.