Advisory Opinion: 1517

Year Issued: 1993

RPC(s): RPC 1.2; 1.5

Subject: Contingent fee agreement terms; authority to settle

The Committee reviewed your inquiry concerning the use of contingent fee agreements which would provide (1) in the event of settlement the attorney will receive either a percentage of the recovery or a flat fee, whichever is greater, while in the event of a recovery following trial, the attorney will simply receive 40%; or (2) the client will not settle the case unless the settlement included a reasonable amount for attorney's fees, reasonableness to be submitted to the court if necessary. The Committee was of the unanimous opinion that a fee agreement provision such as that described in item (1) above, would be permissible under the RPCs, but a provision such as that described in (2) might be improper if it would prevent the client from having the determination of whether or not to settle a case as required by RPC 1.2(a). The Committee determined that the question of whether the client could waive the rights under 1.2(a) is a legal question on which it could render no opinion, but there was strong feeling that any requirement that a client waive that right would be unenforceable.

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.