Advisory Opinion: 1774

Year Issued: 1997

RPC(s): RPC 1.5; 5.3; 5.4

Subject: Division of fees with nonlawyer; paralegal paid flat fee which is charged to client

Facts Presented: A lawyer wants to enter into a contract with an independent paralegal. As part of the compensation for services on any case , the paralegal wants to receive a $250 flat fee for the initial file review and conference with the lawyer. This fee would only be charged in cases in which the paralegal would subsequently work. The paralegal would be paid hourly for work done after this initial review. In all cases this initial fee and the hourly fee would be billed to the client as costs even in contingency fee cases.

Questions Presented: (1) Does this arrangement constitute fee splitting; and (2) What impact, if any, does this "paralegal retainer" have on the client?

Applicable Rules: RPC 1.5; 5.3; 5.4

RPC Committee Opinion: Payment of a flat fee as part of the compensation for an independent paralegal who is retained for work on a case does not violate the rule against fee splitting with a nonlawyer. Provided that the lawyer makes reasonable efforts to insure that the paralegal's conduct is compatible with the professional obligations of the lawyer and that the paralegal's fees are reasonable in light of the lawyer's own expected fees, this arrangement with the paralegal does not violate the Rules of Professional Conduct.

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.