Can a personal trust services company collect a lawyer's fee before the lawyer meets the client and refer clients to lawyers who use the company's fee schedule?

Plain-English summary

The inquiry concerned a lawyer's representation of clients referred by a personal trust services company. The committee determined that informal opinions 1747 and 1471 applied to the situation presented and, citing its inability to give legal advice, addressed the questions on the assumption that they raised ethical issues.

On the question whether there was concern with the trust services company obtaining a fee agreement on the lawyer's behalf and collecting the fee before the lawyer met the client, the committee answered yes and pointed to RPC 5.4(b). On the question whether there was concern with the company referring clients to lawyers who agreed to use the company's fee schedule, the committee answered yes and pointed to RPC 1.2, RPC 1.5, and RPC 7.3(a). The committee declined to answer the remaining questions, which it characterized as requests for legal advice.

Currency note

This opinion was issued in 1997, 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 Treat this page as historical context, not current guidance.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. Washington's cited rules correspond to ABA Model Rules 5.4 (professional independence, including the bar on forming a partnership with a nonlawyer), 1.2 (scope of representation), 1.5 (fees), and 7.3 (solicitation and direct contact with prospective clients).

Common questions

Q: Can a nonlawyer trust company collect a lawyer's fee before the lawyer meets the client?

A: The committee said yes, this raises a concern, and pointed to RPC 5.4(b).

Q: Can a company refer clients to lawyers who agree to use the company's fee schedule?

A: The committee said yes, this raises a concern, citing RPC 1.2, RPC 1.5, and RPC 7.3(a).

Q: Did the committee resolve every question the lawyer asked?

A: No. It declined to answer the remaining sub-questions, treating them as requests for legal advice the committee does not give.

Background and rules framework

The opinion applied RPC 5.4(b) (forming a partnership with a nonlawyer where any of the activities consist of the practice of law), RPC 1.2 (scope of representation), RPC 1.5 (fees), and RPC 7.3(a) (direct contact with prospective clients), corresponding to ABA Model Rules 5.4, 1.2, 1.5, and 7.3. The committee tied the fee-collection arrangement to RPC 5.4(b) and the fee-schedule referral arrangement to RPC 1.2, 1.5, and 7.3(a), and relied on its prior informal opinions 1747 and 1471.

Citations and references

Rules of Professional Conduct:

• ABA Model Rule 5.4 (professional independence of a lawyer); Washington RPC 5.4(b)
• ABA Model Rule 1.2 (scope of representation); Washington RPC 1.2
• ABA Model Rule 1.5 (fees); Washington RPC 1.5
• ABA Model Rule 7.3 (solicitation; direct contact with prospective clients); Washington RPC 7.3(a)

Other opinions cited:

• WSBA Informal Opinions 1747 and 1471: representation of personal trust services clients and fee arrangements with nonlawyer referral sources.

See also

• WA Ethics Op. 1747: Lawyer at a Nonlawyer Trust Firm
• WA Ethics Op. 1768: Fee Sharing on Social Security Cases
• WA Ethics Op. 1730: Preferred-Provider Fee Sharing

Source

• Landing page: https://ao.wsba.org/print.aspx?ID=833

Original opinion text

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

Advisory Opinion: 1769
Year Issued: 1997
RPC(s): RPC 1.2; 1.5; 7.3(a)
Subject: Professional independence; division of fees with nonlawyer; personal trust services company referring clients and collecting fee according to fee schedule

The Committee researched and reviewed your inquiry concerning legal representation of personal trust services' clients and determined that with regards to the fact situation presented in this inquiry, informal opinion 1747 and 1471 apply. In specific answer to the questions posed, the RPC Committee cannot give legal advice. Assuming the inquiry raises ethical issues, (a) [Is there any legal concern with the personal trust services company obtaining a fee agreement on behalf of the lawyer and collecting the fee before the lawyer meets the client?] yes, see RPC 5.4(b); (b) [Is there any legal concern with the personal trust services company referring clients to lawyers who agree to use the company's fee schedule?] yes, see RPC 1.2, 1.5 .7.3(a); but (c), (d), (e) all request legal questions which the Committee declines to answer.