Can a lawyer charge a contingent fee and also bill the client hourly for legal support staff as a cost?

Plain-English summary

The inquiry described a fee agreement under which, in addition to a contingent fee paid to the lawyer, the client would agree to pay as costs hourly rates for the services of legal support staff.

The committee was of the opinion that such an agreement would be permissible, subject to three conditions: that under RPC 1.4(b) the client is given the necessary information to make an informed decision about the arrangement; that the contingent-fee-agreement requirements of RPC 1.5(c) are complied with; and that the total fee charged is reasonable.

Currency note

This opinion was issued in 1987, before the Washington State Bar Association's adoption of the 2006 revisions to the Rules of Professional Conduct. 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 Treat this page as historical context, not current guidance.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 bill support-staff time as a cost on top of a contingent fee?

A: Per the committee, yes, if the client is properly informed under RPC 1.4(b), the contingent-fee requirements of RPC 1.5(c) are met, and the total fee is reasonable.

Q: What has to be disclosed to the client?

A: The committee required that, under RPC 1.4(b), the client be given the information necessary to make an informed decision about the fee agreement.

Q: Is there a cap on the combined charge?

A: The committee did not set a figure but conditioned the arrangement on the total fee being reasonable.

Background and rules framework

The opinion applied RPC 1.4(b) (a lawyer's duty to explain a matter so the client can make informed decisions, corresponding to ABA Model Rule 1.4) and RPC 1.5(c) (requirements for contingent-fee agreements, corresponding to ABA Model Rule 1.5), with the overarching requirement that the total fee be reasonable. The committee treated the support-staff hourly charge as a permissible cost term so long as those conditions were met.

Citations and references

Rules of Professional Conduct:

• ABA Model Rule 1.4 (communication; informed decisions); Washington RPC 1.4(b)
• ABA Model Rule 1.5 (fees; contingent-fee agreements); Washington RPC 1.5(c)

See also

• WSBA Ethics Op. 1025: Contingent Fee, Forfeiture
• WSBA Ethics Op. 978: Contingent vs. Statutory Fees
• WSBA Ethics Op. 1024: Contingent Fee for Collections

Source

• Landing page: https://ao.wsba.org/print.aspx?ID=1140

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

Advisory Opinion: 1103
Year Issued: 1987
RPC(s): RPC 1.4(b); 1.5(c)
Subject: Fee agreement for contingency fee plus hourly costs for support staff

The Committee considered your inquiry regarding a fee agreement which provides that, in addition to payment of a contingent fee to the lawyer, the client agrees to pay as costs hourly rates for the services of legal support staff. The Committee was of the opinion that such a fee agreement would be permissible provided that, pursuant to RPC 1.4(b), the client is given the necessary information to permit the client to make an informed decision regarding such a fee agreement, and that the requirements of contingency fee agreements in RPC 1.5(c), were complied with and, finally, that the total fee charged was reasonable.