State Bar of Michigan Ethics Opinions
Free plain-English summaries of legal ethics opinions issued by the State Bar of Michigan, with full citations and source links on every page.
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Can a lawyer put a clause in the fee agreement requiring the client to arbitrate any future dispute over the representation?
Such a clause is permissible only if, before signing, the client either consults independent counsel or is fully informed in writing by the lawyer of the scope and practical consequences of the arbitr…
Can a lawyer refer clients to a third-party lender that auto-debits the client's account to pay the lawyer's fees and waives the client's defenses?
The opinion concluded that a lawyer may not participate in such a lending scheme: it is the provision of financial assistance to a client barred by MRPC 1.8(e), it is a business transaction giving the…
Can a lawyer take a flat fee from an insurer to defend its insured, and can the lawyer agree to keep that fee arrangement secret from the insured?
The opinion concludes a fixed-fee insurance-defense arrangement is permissible so long as it does not impair the lawyer's independent judgment, competence, or diligence. Disclosure of the fee basis to…
Can a lawyer finance litigation costs with a loan from a lending institution and pass the interest on to the client?
The opinion concluded that a lawyer may finance litigation costs through a third-party loan and charge the interest to the client, provided the lawyer (not the client) is the obligor, the client conse…
Can a lawyer report a client who fails to pay legal bills to a credit reporting agency?
The opinion concludes the fact and amount of an unpaid legal bill is a client secret under MRPC 1.6, so a lawyer may report it to a credit agency only with the client's prior written consent, after a …
Can a lawyer advance a client's court-imposed fines and costs at sentencing and seek reimbursement from the client?
The opinion concluded that a lawyer is not barred from advancing court-imposed fines and costs for a client, provided the client remains responsible for reimbursing the lawyer; the litigation is essen…
Can a lawyer serving as a court-appointed receiver ask the court to pay for time spent responding to a grievance about the receivership?
The opinion concluded that the Michigan Rules of Professional Conduct do not bar a court, in its discretion, from compensating a receiver for time and expense responding to a grievance, because a rece…
When a former client asks for a complete copy of the file, can the lawyer charge for the search and copying costs?
The lawyer may charge reasonable costs to search for and reproduce information the client is entitled to access; the client's right is generally one of access, not ownership, and who owns the file is …
Can a lawyer refer personal-injury clients to a company that advances them cash in exchange for a share of their lawsuit proceeds?
The opinion concluded that a lawyer who agreed to refer tort clients to a venture-capital company taking an interest in their case proceeds would have an irreconcilable conflict of interest, and that …
Can a lawyer have a client waive the right to sue for malpractice in exchange for a lower billing rate?
The opinion concluded that a lawyer may not condition a reduced billing rate on the client's prospective waiver of malpractice liability, because MRPC 1.8(h)(1) bars such an agreement unless it is per…
When a contingency case unexpectedly has to go to trial, may a lawyer renegotiate the contingent fee to an hourly fee and take a lien on the client's separate lawsuit to secure payment?
A lawyer may renegotiate a contingent fee, but bears the burden of meeting the business-transaction safeguards, and may accept (but not require) an assignment of other litigation proceeds if the clien…
Can a lawyer take a one-third contingent fee for a conservatorship's insurance claim, with part of the fee paid from money recovered for the care facility, and should the facility also be a client?
Yes; the client is the conservatorship as an entity, the written contingent fee may include a share of the facility's recovery if the client consents, and the facility should not be a client because t…
If a lawyer might be a necessary trial witness about fees, is the lawyer barred from pre-trial work, and are the lawyer's associates disqualified from trying the case?
No; MRPC 3.7 reaches only acting as advocate at trial, so the lawyer may handle pre-trial matters, and under 3.7(b) the disqualification is not imputed to associates absent an independent 1.7 or 1.9 c…
When an hourly-fee client discharges a lawyer, can the lawyer bill for time spent moving to withdraw, for briefing successor counsel, and for responding to a grievance the client files?
The lawyer may bill for withdrawal time when the client requested the withdrawal, need not brief successor counsel for free absent agreement, and may not charge for responding to a client's grievance …
Can a lawyer let a third party (here a university and its insurer) pay the client's defense fees under conditions like consultation rights and a no-future-adversity clause?
Only if the client consents after full disclosure and the lawyer is satisfied the arrangement will not interfere with independent judgment or the client-lawyer relationship; consent cannot cure an arr…
Can a lawyer put a clause in the client agreement sending fee, file, malpractice, and ethics disputes to a named ADR program?
Fee, file, and malpractice disputes may be sent to ADR if the client is given the chance to obtain independent counsel about the agreement; disputes over the lawyer's ethical conduct may not be sent t…
Can a Michigan lawyer's direct-mail advertising circular call the firm 'affordable,' offer a free informational interview, and quote specific fees?
The opinion concluded that an otherwise proper direct-mail circular may describe the firm as 'affordable,' invite recipients to a free 'no-cost informational interview,' and quote the actual fees the …
Can a lawyer advertise under a trade name without the lawyer's own name, and charge a contingent fee to collect overdue child support or alimony?
A lawyer may advertise under a non-misleading trade name without the lawyer's own name, and may charge a reasonable, written contingent fee to enforce post-judgment support, alimony, or property provi…
Can a law firm holding a county contract as public guardian or conservator also serve as legal counsel to the wards it is appointed to protect?
No; a lawyer who is a ward's guardian or conservator may not also act as the ward's legal counsel on matters outside the fiduciary duties, because the dual role collapses the checks and balances the r…
Can a lawyer put a broad arbitration clause in a retainer agreement covering any dispute with the client, including malpractice?
Not if it circumvents the ethics rules; the clause cannot deny the client independent advice, bar reporting misconduct to the grievance commission, prospectively limit malpractice liability without in…
Does a bankruptcy debtor's lawyer have to handle a later adversary proceeding, and what must the lawyer do on learning the petition contained false information?
An adversary proceeding falls within the representation unless the agreement unambiguously excludes it, and if the lawyer learns petition information is false and the client won't correct it, the lawy…
Can Michigan lawyers organize their firm as a professional limited liability company, and what must they call it and disclose to clients?
The opinion concluded lawyers may form a professional limited liability company whose name must contain 'Professional Limited Liability Company,' 'P.L.L.C.,' or 'P.L.C.'; the form does not limit the p…
When a lawyer pursues an estate's accident claims, can the lawyer also represent the decedent's medical creditors and charge them a fee out of the recovery?
The lawyer may represent both the estate and the medical providers if no dispute over the bills makes them adverse, but cannot represent either side in a dispute over the bill, and cannot double-charg…
Can a lawyer let a Chamber of Commerce recommend the lawyer to its members and advertise member discounts as a reason to join the Chamber?
A lawyer may let an organization recommend the lawyer only if it has a prior professional relationship with the lawyer, the lawyer reviews the ad, and nothing of value beyond advertising cost changes …
Can a lawyer represent settling parties when an adverse third party pays the fee, pays only if the parties settle on the third party's terms, and limits the lawyer to explaining that settlement?
No. The opinion concluded the arrangement is an impermissible conflict because being paid only if the clients settle, and only to explain the third party's proposed settlement, would materially limit …
Can a lawyer bill the probate work from an estate hourly while handling or referring the related wrongful-death claim on a contingent or referral-fee basis?
Yes. The opinion concluded the lawyer may bill probate hourly and either handle the wrongful-death claim on contingency, refer it for a share of the successor's fee, or handle the distribution, with t…
If a contingent fee agreement says nothing about an appeal, must the lawyer file the client's appeal, and can the lawyer charge an additional fee for it?
Where the agreement is silent, the lawyer must file the client's non-frivolous appeal, and may not charge an additional fee for it; the total contingent fee in a personal injury or wrongful death case…
Can a lawyer pay a court-ordered security for costs on behalf of an indigent client in Michigan?
The opinion concluded that a lawyer or firm may pay a court-ordered security for costs on behalf of a genuinely indigent client, because the security is an expense of litigation that MRPC 1.8(e)(2) pe…
Can a law firm's partnership or employment agreement restrict a departing lawyer from contacting former clients or competing?
The opinion concluded that firm agreements may not restrict a lawyer's right to practice after leaving (except for retirement benefits), may not bar contacts a non-member lawyer could make, may not in…
After collecting a one-third contingent fee in a personal injury case, can the same firm charge the client a separate fee to provide financial counseling on the recovery?
Yes. The opinion concluded that financial counseling on managing the recovery is a new and separate matter, so a separate reasonable fee for it does not add to the contingent fee or violate the one-th…
When can a Michigan lawyer treat a flat or fixed fee as earned and move it out of the client trust account into the operating account?
A true nonrefundable retainer is the lawyer's property and need not go in trust, but an advance fixed fee for future work is unearned and must stay in trust until earned; lawyer and client may agree t…
If a lawyer receives a cash fee over $10,000, do the confidentiality rules bar the lawyer from filing the IRS cash-transaction report (Form 8300)?
No. The opinion concluded no ethics rule prohibits a lawyer from complying with the IRC requirement to report a cash fee over $10,000, because the confidentiality rule allows disclosure required by la…
Can a Michigan lawyer put a clause in the retainer agreement requiring that any fee dispute with the client go to arbitration?
Yes, the opinion found no ethical bar to an arbitration clause for fee disputes, but it applied the malpractice-liability rule and required that the client first obtain independent counsel about the a…
Can a lawyer advertise 'no fee unless you recover' without telling potential clients they may still owe litigation costs if the case is lost?
No; the opinion concluded that because lay readers treat 'fees' and 'costs' as interchangeable, a 'no fee unless recovery' ad is misleading unless it also indicates the client remains liable for costs…
In a federal civil-rights case where attorney fees are statutory, may a plaintiff's lawyer negotiate the merits and the fee award at the same time, and disclose hours and rates?
Yes; the opinion concluded simultaneous negotiation of merits and statutory fees is ethically permissible, the lawyer may reveal hours, rate, and any multiplier, but potential conflicts must be disclo…
When a lawyer's work gets a client's no-fault insurer to pay the client's hospital bill, can the lawyer charge the hospital a fee even though the hospital is not the lawyer's client?
Not for benefits the insurer paid voluntarily, since there is no lawyer-client relationship; but the lawyer may charge a reasonable fee for benefits won involuntarily after first giving the hospital w…
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Legal ethics opinions from the State Bar of Michigan interpret the rules of professional conduct for working lawyers, in response to inquiries from members and committees. They are not binding like court discipline decisions, but courts and discipline boards treat formal opinions as substantial guidance on how the rules apply. Every opinion above has a plain-English question and short answer, plus a link to the original source on the bar's site.