My firm wants to refer overdue client accounts to a collection agency, giving it each debtor's name, address, and the amount owed. Do the confidentiality rules allow that?

Plain-English summary

The inquiring attorney's law firm had a number of overdue accounts receivable and was considering referring these accounts to an agency for collection. The firm would furnish the agency with the name and address of the debtor and the amount due. The attorney asked whether the Rules of Professional Conduct imposed any ethical restraints on the proposed conduct.

The Panel set out Rule 1.6 (confidentiality of information), which generally barred revealing information relating to the representation of a client absent consent, but permitted disclosure under Rule 1.6(b)(2) to the extent the lawyer reasonably believes necessary to establish a claim or defense on behalf of the lawyer in a controversy between the lawyer and the client.

The Panel concluded that the information regarding the debtors' identity and the amount due on the accounts may be revealed under Rule 1.6(b)(2) in order to establish a claim on behalf of the law firm.

Currency note

This opinion was issued in 1994 (Opinion 94-6, issued February 23, 1994), after the Rhode Island Supreme Court adopted the Model Rules of Professional Conduct effective November 15, 1988, and it applies Rule 1.6 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 1.6 and its exceptions. 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 Treat this page as historical context, not current guidance.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.

Common questions

Q: Can a law firm give a collection agency a client's name and unpaid balance?

A: The Panel concluded yes, under Rule 1.6(b)(2), because disclosing the debtor's identity and the amount due establishes a claim on behalf of the firm.

Q: Which confidentiality exception applies to fee collection?

A: Rule 1.6(b)(2), which permits disclosure the lawyer reasonably believes necessary to establish a claim in a controversy between the lawyer and the client.

Background and rules framework

The opinion interprets Rhode Island Rule of Professional Conduct 1.6 (confidentiality of information), the analog of Model Rule 1.6. Rule 1.6(a) barred revealing information relating to the representation absent consent; Rule 1.6(b)(2) allowed disclosure to establish a claim or defense on the lawyer's behalf in a controversy with the client. The Panel treated the firm's effort to collect overdue accounts as such a controversy.

Citations and references

Rules of Professional Conduct:

• MR 1.6 / RI RPC 1.6(b)(2) (confidentiality; disclosure to establish a claim in a lawyer-client controversy)

See also

• RI EAP Opinion 93-52: a firm-letterhead collection agency arrangement violates Rules 5.4, 5.5, 7.1, and 4.1
• RI EAP Opinion 91-81: cannot deduct a disputed collection-agency fee; remit full proceeds to the creditor

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%2094-06.pdf

Original opinion text

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

0646
FINAL

ETHICS ADVISORY PANEL
OPINION #94-6 REQUEST #458
Issued February 23, 1994

The inquiring attorney's law firm has a number of over due accounts receivable and is considering referring these accounts to an agency for collection. The inquiring attorney's law firm will furnish the agency with the name and address of the debtor and the amount due. The inquiring attorney asks whether the Rules of Professional Conduct impose any ethical restraints on the proposed conduct of the law firm.

Rule 1.6 entitled "Confidentiality of Information" provides as follows:

Rule 1.6. Confidentiality of Information. - (a) A lawyer shall not reveal information relating to representation of a client unless the client consents after consultation, except for disclosures that are impliedly authorized in order to carry out the representation, and except as stated in paragraph (b).

(b) A lawyer may, but is not obligated to, reveal such information to the extent the lawyer reasonably believes necessary:

(2) to establish a claim or defense on behalf of the lawyer in a controversy between the lawyer and the client, to establish a defense to a criminal charge or civil claim against the lawyer based upon conduct in which the client was involved, or to respond to allegations in any proceeding concerning the lawyer's representation of the client.

Under these facts, the Panel concludes that the information regarding the debtors' identity and the amount due on the accounts may be revealed under subsection (b)(2) of Rule 1.6 in order to establish a claim on behalf of the law firm.