If I later reduce the fee I actually charge my client, but the court awarded or a third party paid a stated attorney fee, do my representations about that fee have to match under Rules 3.3 and 4.1?

Plain-English summary

The inquiring attorney described two situations. In the first, the attorney brought suit on a promissory note for $1,000.00; the court awarded $1,000.00 as a judgment plus $300.00 for attorney fees plus costs. The attorney collected the judgment, attorney fees, costs, and interest, then remitted a bill for $300.00 to the client, and the client deducted fifteen percent from the bill. In the second, the attorney initiated a foreclosure on behalf of the client; the mortgagor paid up to date and included the demanded counsel fee, the attorney remitted to the client a sum including attorney's fees and expenses, and the client again reduced the attorney's fees by fifteen percent.

The Panel opined that if the inquiring attorney chooses to negotiate a lower fee for the client, then all representations regarding the fees made to the court or to third parties must reflect the actual fee, citing Rule 3.3 ("Candor Toward the Tribunal") and Rule 4.1 ("Truthfulness in Statements to Others").

Currency note

This opinion was issued in 1994 (Opinion 94-64, issued September 28, 1994), after the Rhode Island Supreme Court adopted the Model Rules of Professional Conduct effective November 15, 1988, and it applies Rules 3.3 and 4.1 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 these rules. 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 Treat this page as historical context, not current guidance.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: If I reduce the fee I actually charge my client, can the court or a third party still be told the original figure?

A: The Panel concluded no. If the attorney negotiates a lower fee, all representations about the fee to the court or third parties must reflect the actual fee.

Q: Which rules require accurate fee statements?

A: The Panel cited Rule 3.3 (candor toward the tribunal) for statements to the court and Rule 4.1 (truthfulness in statements to others) for statements to third parties.

Background and rules framework

The opinion interprets Rhode Island Rules of Professional Conduct 3.3 (candor toward the tribunal) and 4.1 (truthfulness in statements to others), the analogs of Model Rules 3.3 and 4.1. Rule 3.3 governs a lawyer's truthfulness to a tribunal; Rule 4.1 governs truthfulness to third persons. The Panel applied both to representations about the amount of a fee where the lawyer later reduced the client's charge.

Citations and references

Rules of Professional Conduct:

• MR 3.3 / RI RPC 3.3 (candor toward the tribunal)
• MR 4.1 / RI RPC 4.1 (truthfulness in statements to others)

See also

• RI EAP Opinion 94-54: duty to report a prior lawyer's misconduct under Rule 8.3
• RI EAP Opinion 94-63: a retainer is a refundable fee advance under Rule 1.5

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%2094-64.pdf

Original opinion text

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

ETHICS ADVISORY PANEL
OPINION #94-64 REQUEST #535
Issued September 28, 1994

The inquiring attorney seeks advice from the Panel regarding the following circumstances. The inquiring attorney brought suit on a promissory note for $1,000.00. The court awarded $1,000.00 as a judgment plus $300.00 for attorney fees plus cost. The attorney collected the judgment, attorney fees, costs and interest and then remitted a bill for $300.00 to the client. The client deducted fifteen percent from the bill. In the second situation, the attorney initiated a foreclosure on behalf of the client. The mortgagor paid up to date and included the demanded counsel fee. The attorney remitted to the client a sum of money which included attorney's fees and expenses. In response to the attorney's bill, the client reduced the attorney's fees by fifteen percent.

If the inquiring attorney chooses to negotiate a lower fee for his/her client, then all representations regarding the fees made to the court or third parties must reflect the actual fee. See, Rule 3.3 entitled "Candor Toward the Tribunal" and Rule 4.1 "Truthfulness in Statements to Others."