Can a lawyer absorb expenses like postage, long-distance calls, and travel rather than billing them to the client?

Plain-English summary

Opinion E-84-6 asked whether an attorney may, in connection with representing a client, incur expenses such as postage, long-distance telephone calls, and the attorney's own travel. The committee relied on ABA Informal Opinion 388, which stated that telephone calls, hotel bills, and similar items are not expenses that must be paid or reimbursed by the client.

The committee concluded that so long as the postage, phone, and travel expenses are personal expenses of the attorney and not expenses of the client, the attorney's payment of them would not be improper. It cited an Oregon opinion to similar effect (an attorney may bear investigation and travel expenses) and noted the limitation in SCR 20.26(2).

Currency note

This opinion was issued in 1984, before Wisconsin's July 1, 2007 adoption of the revised Rules of Professional Conduct for Attorneys (the state's Ethics 2000 update), and it analyzes conduct under the former Code. Fees and the advancing of costs are now governed by SCR 20:1.5 / Model Rule 1.5 and SCR 20:1.8(e) / Model Rule 1.8(e). 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 Treat this page as historical context, not current guidance.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, deadline, or requirement mentioned here.

Common questions

Q: Can a lawyer absorb postage, phone, and travel costs instead of billing the client?

A: The committee concluded yes, provided those are the attorney's own personal expenses and not the client's expenses.

Q: What was the basis for the conclusion?

A: The committee relied on ABA Informal Opinion 388, which treated items like telephone calls and hotel bills as not expenses the client must reimburse.

Background and rules framework

The opinion interpreted the former Code provision on a lawyer bearing or advancing expenses (SCR 20.26(2)). Fees and the advancing of costs are now governed by SCR 20:1.5 / Model Rule 1.5 and SCR 20:1.8(e) / Model Rule 1.8(e).

Citations and references

Rules of Professional Conduct:

• Wis. SCR 20.26(2) / Model Rule 1.8(e) (advancing or bearing expenses) (former Code provision)

Other opinions cited:

• ABA Informal Opinion 388
• Oregon State Bar Opinion 154 (Oct. 1967)

See also

• WI Ethics Op. E-09-03: Communicating Fees and Expenses to Clients
• WI Ethics Op. E-87-10: Recovering Costs in Workers' Compensation Cases
• WI Ethics Op. E-90-4: Interest Charges on Delinquent Accounts

Source

• Landing page: https://www.wisbar.org/formembers/ethics/pages/formal-opinions.aspx
• Original PDF: https://www.wisbar.org/formembers/ethics/Ethics%20Opinions/E-84-6.pdf