Advisory Opinion:
1999
Year Issued:
2002
RPC(s):
RPCs 1.6, 1.7, 1.8, 5.4, CrR 4.7
Subject:
fees paid by third party, client confidences
The inquirer asks the following question: Where fees and costs are paid on behalf of a client by a third party and justification for payment is required by submitting to the third party a normal itemization of services performed does the lawyer violate the ethical rules by providing to the third party payer the itemization?
The committee opined that a lawyer, whose fee is paid by one other than the client, has the same obligations as counsel paid directly by the client. A lawyer whose professional services are paid by a third party can ethically submit a billing statement to the person or entity paying the bill, provided the billing statement does not: (1) require disclosure of confidential or secret information of the client, without the client’s consent; (2) interfere with the lawyer’s independent professional judgment or with the attorney-client relationship; or (3) direct or regulate the lawyer’s independent professional judgment in rendering legal services to the client. Although the phrase “normal itemization” is not defined, if the itemization includes broad nonspecific terms void of client confidences or secrets it will not violate RPC 1.6 or 1.8. The committee suggests that a review of CrR 4.7 may assist the lawyer in resisting discovery of work product that may contain client confidences. Finally, the inquirer may refer to RPC 1.7, 1.8 and 5.4 in addressing the duties and responsibilities of a lawyer when a third party pays the fee.
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