Advisory Opinion: 1198

Year Issued: 1988

RPC(s): RPC 1.5; 1.8(a); 1.8(j)

Subject: Contingent fee for excavation permit based on proceeds from excavation; business transaction with client


The Committee considered your inquiry concerning whether a contingent fee agreement for legal services rendered in obtaining an excavation permit would create a conflict of interest with the client because the fee would be paid from the proceeds of sale of the sand to be excavated under the permit. The Committee was of the opinion that such an agreement does not violate RPC 1.8(j) and that there is no conflict of interest because the interest obtained by the lawyer is only an additional incentive to obtain a favorable result for the client. However, if after the excavation permit were granted, the attorney were given authority to make decisions with the client as to contracts for the sale of the sand, then the attorney would become involved with the client in a business transaction and would have to meet the requirements of RPC 1.8(a). In that regard, the Committee suggested that I direct your attention to In re McGlothlen, 99 Wn.2d. 515, 663 P.2d. 1330 (1983). The Committee was further of the opinion that such an agreement would not violate RPC 1.5(c) nor create an impermissible partnership with a non-lawyer.

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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.