Can I bill an estate a flat percentage of its value for administering it if the client signed a written contract agreeing to that percentage fee?

Plain-English summary

The inquiring attorney asked whether it is ethically proper to bill an estate based on a percentage fee for work performed on the estate, where that percentage was set forth in a written contract signed by the client.

The panel said Rule 1.5 ("Fees") governs the inquiry. It quoted Rule 1.5(a), which provides that a lawyer's fee shall be reasonable and lists the factors bearing on reasonableness: the time and labor required, the novelty and difficulty of the questions and the skill required; the likelihood, if apparent to the client, that the employment will preclude other employment; the fee customarily charged in the locality for similar services; the amount involved and the results obtained; the time limitations imposed; the nature and length of the professional relationship; the experience, reputation, and ability of the lawyers; and whether the fee is fixed or contingent.

Applying that standard, the panel advised that the attorney should assess a fee that is reasonable under the circumstances and commensurate with the time and labor and the value of the services rendered to the client. The panel stated that this holds true even though the client agreed to a percentage fee.

In practice

Under this opinion, a client's written agreement to a percentage fee does not displace the Rule 1.5 reasonableness requirement for estate work; the fee the attorney charges should be reasonable under the circumstances and commensurate with the time, labor, and value of the services rendered. The opinion resolves the reasonableness question under Rule 1.5's enumerated factors and does not address other aspects of the fee arrangement.

Common questions

Q: If my client signed a written percentage-fee contract, is that fee automatically proper?

A: Per the opinion, no; Rule 1.5 still requires the fee to be reasonable, and the attorney should assess a fee commensurate with the time, labor, and value of services even though the client agreed to a percentage.

Q: What standard governs the estate fee?

A: Per the opinion, Rule 1.5 ("Fees") governs, and its reasonableness factors determine whether the fee is proper.

Q: What factors bear on whether the fee is reasonable?

A: Per the opinion, Rule 1.5(a) lists them, including the time and labor required, the fee customarily charged locally, the amount involved and results obtained, the professional relationship, the lawyer's experience, and whether the fee is fixed or contingent.

Background and rules framework

The opinion applies Rhode Island Rule 1.5 (fees), corresponding to Model Rule 1.5. The panel quoted Rule 1.5(a)'s reasonableness command and its eight enumerated factors and applied them to a written percentage-fee agreement for estate work, concluding the fee must be reasonable and commensurate with the time, labor, and value of services notwithstanding the client's agreement to a percentage.

Citations and references

Rules of Professional Conduct:

• MR 1.5 (fees)
• RI RPC 1.5(a)

Statutes:

• None cited.

Cases:

• None cited.

Other opinions cited:

• None cited.

See also

• RI EAP Op. 91-78: Contingent Fee Proper for Support Arrears, Not Increases
• RI EAP Op. 92-02: Contingent Fee for Overdue Support and Client Loans

Currency note

This opinion was issued in 1992 (Opinion 92-73, issued September 16, 1992), after the Rhode Island Supreme Court adopted the Model Rules of Professional Conduct effective November 15, 1988, and it applies Rule 1.5 as originally adopted. The Rhode Island Supreme Court later revised the Rules of Professional Conduct in 2007 as part of the nationwide Ethics 2000 process, which amended Rule 1.5 (fees). Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule mentioned here.

Source

• Landing page: https://www.courts.ri.gov/attorney-resources/Pages/Ethics-Advisory-Panel-default.aspx
• Original PDF: https://www.courts.ri.gov/Opinions/EAP%2092-73.pdf

Original opinion text

Best-effort transcription from a scanned PDF. Minor errors may remain; the linked PDF is authoritative.

ETHICS ADVISORY PANEL
Opinion 92-73, Request #299
Issued September 16, 1992

An attorney seeks Panel advice regarding the ethical propriety of billing an estate based upon a percentage fee for work performed on an estate which was set forth in a written contract signed by the client.

The Panel believes that Rule 1.5 "Fees" governs this inquiry. The Rule states that:

(a) A lawyer's fee shall be reasonable. The factors to be considered in determining the reasonableness of a fee include the following:

(1) the time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly;

(2) the likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer;

(3) the fee customarily charged in the locality for similar legal services;

(4) the amount involved and the results obtained;

(5) the time limitations imposed by the client or by the circumstances;

(6) the nature and length of the professional relationship with the client;

(7) the experience, reputation, and ability of the lawyer or lawyers performing the services; and

(8) whether the fee is fixed or contingent.

The Panel believes that the attorney should assess a fee which is reasonable under the circumstances and commensurate with the time and labor and the value of services rendered to the client. This holds true even though the client agreed to a percentage fee.