Advisory Opinion: 1404

Year Issued: 1991

RPC(s): RPC 1.5; 5.4

Subject: Division of fees with nonlawyer; contingent fee arrangement with percentage cap with consulting firm


The Committee reviewed your inquiry concerning an arrangement with a consulting firm whereby the consulting firm would be paid by your law firm out of the fees earned by the law firm. Neither your firm nor the consulting firm would be paid unless a professional athletic contract were executed. In addition, you have put a "cap" [of 30% of fees received by law firm] on the total compensation to be paid to the firm.
The Committee was of the opinion that as presently structured, this arrangement would constitute fee splitting with a non-lawyer in violation of RPC 5.4. The Committee was of the opinion that there would be nothing improper with restructuring the arrangement so that there was a separate fee contract between the client and the consultant. In addition, the Committee was concerned that the "cap" might not ensure a reasonable fee, and directs your attention to the consideration in RPC 1.5 regarding a reasonable fee.

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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.