Advisory Opinion: 1253

Year Issued: 1988

RPC(s): RPC 1.5(e)

Subject: Division of fees; partnership buy-out agreement; payment of percentage fee to withdrawing shareholder

The Committee considered your inquiry concerning a buy-out agreement between a professional services corporation and a withdrawing shareholder of the corporation. The Committee was of the opinion that the buy-out agreement could provide for a percentage fee to be paid to the withdrawing shareholder provided that the percentage was reasonable and based on the proportion of work done on each individual case. The Committee was of the opinion, however, that the agreement could not provide for a blanket percentage division on every case as that would violate RPC 1.5(e).

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.