Advisory Opinion: 1966

Year Issued: 2001

RPC(s): RPC 1.5; Formal Opinion 186

Subject: Deposit of flat fees; refund of flat fees

The inquirer asks whether flat fees violate the Rules of Professional Conduct and into what account should a flat fee be deposited. The inquirer also asks for ethical guidance when a client has paid a flat fee but the agreed legal work was not completed by the lawyer.

The committee opined that a flat fee agreement does not violate the Rules of Professional Conduct. As with any fee, a flat fee must be reasonable as required by RPC 1.5. For example, in the event of an early termination of the lawyer-client relationship before the agreed legal work has been completed, the agreed flat fee may be unreasonable. Finally with regard to deposit of a flat fee, Formal Opinion 186 provides, in part, that any fee paid to a lawyer that the client has agreed is not refundable and is earned upon receipt for handling the client’s case shall not be deposited in the lawyer’s trust account.

Advisory Opinions are provided for the education of the Bar and reflect the opinion of the Committee on Professional Ethics (CPE) or its predecessors. Advisory Opinions are provided pursuant to the authorization granted by the Board of Governors, but are not individually approved by the Board and do not reflect the official position of the Bar association. Laws other than the Washington State Rules of Professional Conduct may apply to the inquiry. The Committee's answer does not include or opine about any other applicable law other than the meaning of the Rules of Professional Conduct.