Advisory Opinion: 1679

Year Issued: 1996

RPC(s): RPC 1.5(c)

Subject: Contingent fee agreement providing fee if lawyer discharged based on last bona fide settlement offer

The Committee reviewed the proposed language in paragraph III(C)(4) of a contingent fee contract and was of the opinion that the phrase "if you do not retain other counsel on a contingent fee basis" coupled with the sentence "if you retain other counsel on a contingent fee basis in an amount at least equal to the contingent fee in this agreement, we may, at our sole option, collect a fee of 1/3 of the last bona fide offer of a settlement made by the opposing party or the amount you ultimately recover, if the matter proceeds to adjudication, whichever is less" would violate the requirements of RPC 1.5(c). The Committee was also of the opinion that nothing in the RPCs precludes a clause in a fee contract that upon discharge a lawyer may claim a fee at a reasonable hourly rate.

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.