Advisory Opinion: 1572

Year Issued: 1994

RPC(s): RPC 1.2(a)

Subject: Contingent fee based on greater of recovery at trial or settlement offer

I have been instructed by the Rules of Professional Conduct Committee to respond to your ethics inquiry regarding a contemplated contract provision in a contingent fee contract.

In response to your inquiry, the RPC Committee has evaluated your proposed provision for a contingent fee agreement based on the greater of (1) the recovery obtained at trial, or (2) the amount offered in settlement. The provision would be triggered only if the client rejects a settlement offer that the firm deems "reasonable in light of the circumstances." The response by the Committee was that the provision infringes on RPC 1.2(a) that requires an attorney to abide by the client's decision whether to accept or reject a settlement offer.

[Editor's Note: See Formal Opinion 191]

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.