Advisory Opinion:
1878
Year Issued:
1999
RPC(s):
RPC 5.4
Subject:
Division of fees with nonlawyer; lawyer paying consulting expert partly on contingent fee basis
The inquiry concerns whether a lawyer who anticipates bringing a class action lawsuit involving complex issues of health care may engage a consultant on a part hourly and part contingent fee basis without violating the RPC prohibiting fee splitting, where the consultant will not testify in the matter and the consultant’s fee is calculated not as a percentage of the lawyer’s fee or of the recovery but rather at a higher hourly rate contingent on success of the lawsuit.
An arrangement, in a class action, whereby a forensic consultant who will not testify in a matter and who is engaged by a lawyer on an hourly rate, a portion of which, will be paid contingent on success, does not violate the RPC prohibition against a lawyer sharing legal fees as long as it is not paid out of the lawyer’s contingent fee and, provided further, that the amount that is contingent on success is set forth in a written contingent fee agreement that specifies whether it is to be deducted before or after calculation of the lawyer’s contingent fee.
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