Ethics Hotline & Opinions

Ethics Docket No. 1995-24

MARYLAND STATE BAR ASSOCIATION, INC.

COMMITTEE ON ETHICS

ETHICS DOCKET NO. 1995-24

Charging For Expenses In Contingent Cases

 

You have indicated that after your firm had been retained to represent a client, another firm then sought to ""sign-up"" the client by providing the client with a document titled ""Power of Attorney"" which sets forth the terms for a proposed contingency fee agreement.

You not that ""[t]he only thing that I find that troubles me. . . is the sentence 'at the conclusion of the claim, there will be no fee or charge for expenses unless I receive a settlement offer or judgment,' "" and you then indicate that it is your understanding of the Code of Professional Conduct that while funds can be advanced on behalf of a client, one is not permitted ""to finance litigation.""

The Committee suggests that you read Rule 1.8 (e) (1), which provides:

A lawyer shall not provide financial assistance to a client in connection with pending or contemplated litigation, except that:

(1) a lawyer may advance court costs and expenses of litigation, the re-payment of which may be contingent on the outcome of the matter.

 

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