Advisory Opinion: 2034

Year Issued: 2004

RPC(s): RPC 1.5, 1.15

Subject: Reasonableness of non-refundable fees

Questions Presented:

1. Are non-refundable fees subject to the reasonableness requirement of RPC 1.5 and/or the refund requirements of RPC 1.15?

2. If so, at what time is reasonableness to be determined – when the agreement is made, or on completion of the representation, either by client termination of the attorney-client relationship, the lawyer’s inability to perform, or the fulfillment of all services the client expected of the attorney?

Answers:

1. Yes. Non-refundable fees are subject to the reasonableness requirement of RPC 1.5 and the refund requirements of RPC 1.15.

2. Reasonableness is ordinarily determined when the agreement between the client and the lawyer is made. In some circumstances, the reasonableness of a fee agreement must be re-evaluated because subsequent unforeseen events have so altered the relationship between the lawyer and the client that a fee agreement that was reasonable at the time the agreement was made is no longer reasonable. Examples of such subsequent events may include, but are not limited to, death of the client or lawyer, lawyer’s loss of his license, or failure of lawyer to perform the contracted services.

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.