New York City Bar Ethics Opinions
Free plain-English summaries of legal ethics opinions issued by the New York City Bar, with full citations and source links on every page.
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May a New York law firm's partnership or employment agreement impose forfeitable bonuses, conditional loan forgiveness, deferred compensation, or capital deductions that, in effect, discourage a departing lawyer from competing with the firm?
Per the opinion, no. The committee holds that Rule 5.6(a)(1) prohibits not only express anti-competition provisions but also facially neutral discretionary financial terms whose actual effect is to de…
When a lawyer represents several clients with related cases, when does settling them together count as an aggregate settlement requiring each client's written consent under Rule 1.8(g)?
Grouping separate but related cases for settlement where the terms are interdependent is an aggregate settlement requiring each client's written informed consent (or court approval). Even settling one…
Can a New York lawyer or legal-services agency provide financial assistance for living expenses to an indigent client in an administrative proceeding?
No, not for living or non-litigation expenses. Rule 1.8(e) bars a lawyer (and others in the firm) from giving an indigent client financial assistance beyond court costs and litigation expenses. But a …
Can a New York lawyer require a client to pay legal fees in cryptocurrency like Bitcoin?
A fee agreement requiring payment in cryptocurrency is a business transaction with the client subject to Rule 1.8(a) when the client expects the lawyer to exercise professional judgment on the client'…
Can a New York lawyer take litigation funding where the lawyer's repayment to the funder is tied to the legal fees the lawyer collects?
No. Under Rule 5.4(a), a lawyer may not enter a financing agreement with a litigation funder (a non-lawyer) where the lawyer's future payments to the funder are contingent on the lawyer's receipt of l…
Can a New York lawyer charge a flat, nonrefundable monthly retainer fee?
The opinion concludes such a fee may be permissible only if it is not excessive, is fully earned, does not impede the client's right to terminate, and is clearly disclosed. Because the monthly fee ble…
Can a lawyer charge a client's credit card for a bill the client has disputed, if the client pre-authorized card charges?
No. The opinion concludes that once a client disputes all or part of a bill, the lawyer may not charge the credit card for the disputed portion, even with prior advance authorization. A lawyer holding…
Can a lawyer represent a client who uses third-party (non-recourse) litigation funding?
The opinion concludes it is not unethical per se, but the lawyer must be alert to several issues: candid advice on costs and alternatives under Rule 2.1, possible waiver of privilege from sharing case…
Can a plaintiff's lawyer agree to personally indemnify the defendant against liens on settlement payments?
No. The opinion concludes that plaintiff's counsel may not agree to hold the defendant harmless from third-party claims (such as insurer or Medicare liens) arising out of settlement payments, because …
Must a lawyer keep client emails and electronic documents, and can the lawyer charge the client to retrieve and produce them?
A lawyer must retain emails and electronic documents the client may later need, the same as paper files, and a client has a presumptive right to the lawyer's entire file subject to narrow exceptions. …
Can a New York lawyer outsource legal support work (research, document review, drafting) to a non-lawyer or foreign lawyer overseas?
Yes, if the New York lawyer rigorously supervises the overseas non-lawyer to avoid aiding the unauthorized practice of law and ensure competence, preserves client confidences (with informed consent be…
Can a lawyer take stock or options in a startup client as payment for legal services instead of a cash fee?
The opinion concluded there is no per se bar on accepting securities as compensation for legal services, but the arrangement may trigger the business-transaction safeguards of DR 5-104(A), may present…
Can a lawyer charge a client interest on unpaid legal fees, and at what rate?
The opinion concluded a lawyer may charge interest on unpaid fees, whether or not the retainer agreement provides for it, if the client is informed of the charge and given a reasonable chance to pay b…
Can a lawyer charge a contingent-fee client interest on litigation expenses the lawyer advanced and financed by a bank loan?
Yes, with limits. The opinion concluded a lawyer may charge a client interest on advanced litigation expenses to recover the lawyer's own bank borrowing cost, so long as the interest does not exceed w…
Can a lawyer charge a forfeitable initiation retainer and advertise a fee discount without stating the standard fee?
No to both. The opinion concluded a lawyer may not charge an initiation/retainer fee that is forfeited entirely if the client terminates, and may not advertise that some clients get a discount from 's…
Can a lawyer use a third-party company that finances clients' legal fees, paying the lawyer up front and collecting from the client with interest?
The opinion concluded such fee-financing arrangements are not per se improper, but the specific plan would be improper unless modified, because the lawyer must keep control over whether the client is …
Can a law firm give a nonlawyer billing clerk full discretion and authority to prepare and sign client fee bills without attorney review?
The opinion concluded a firm may delegate final authority for preparing fee bills to a nonlawyer, but the lawyers remain ultimately responsible as a matter of ethics for any billing improprieties and …
Can a lawyer take a will contest on a contingent fee, and can the lawyer pay a private investigator a contingent fee on the case?
The opinion concluded a lawyer may charge a contingent fee in a will contest if it is reasonable and the writing requirements are met, but may not compensate a private investigator on a contingent fee…
Can a New York lawyer charge a fee paid in advance and call it 'nonrefundable'?
The opinion concluded that minimum fees, flat fees, and traditional retainers can be reasonable and proper, but no advance fee is ever literally nonrefundable, so a lawyer may not characterize an adva…
Can a lawyer agree with a client, in a retainer or otherwise, that the client will pay any Rule 11 or Part 130 sanctions imposed on the lawyer?
The opinion concluded that an agreement shifting court-imposed sanctions from the lawyer to the client, whether made before or after sanctions are imposed, is improper, because sanctions on a lawyer r…
Can a lawyer take a mortgage on a client's home to secure payment of the legal fee, and what conditions apply?
The opinion concluded that a lawyer may take a mortgage on a client's property to secure a fee, but the transaction is a business transaction under DR 5-104(A), so it requires the client's consent aft…
Is it unethical for defense counsel to condition a civil rights settlement on the plaintiff waiving statutory attorneys' fees?
The opinion concluded that, after the Supreme Court's decision in Evans v. Jeff D., it is not unethical per se for defense counsel to propose settlements conditioned on a waiver of statutory attorneys…
Can a law firm suing a former client for unpaid fees reveal what the client told it in confidence?
The opinion concluded that a firm suing a former client for fees may disclose the client's confidences and secrets only to the extent strictly and clearly necessary to establish or collect the fee or …
Is a lawyer on a contingent fee required to handle an appeal after losing at trial without charging more?
The opinion concluded that whether a lawyer must handle an appeal depends on the scope of the retainer agreement, a question of law; if the contract requires it the lawyer has an ethical duty under DR…
Can a lawyer take a criminal-defense fee out of the client's recovery in a separate civil case?
The opinion concluded that a fixed criminal-defense fee paid from the client's eventual civil recovery is not a prohibited criminal contingent fee, because the fee does not turn on the outcome of the …
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Legal ethics opinions from the New York City Bar 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.