LEO: Fee Arrangements - Collections LE Op. 541
Fee Arrangements - Collections.
February 25, 1984
It is not improper for a law firm, which represents a creditor in the
collection of delinquent accounts on an hourly fee basis with a monthly
billing, to apply to the client's legal fee account attorney's fees
received out of judgments in which attorney's fees were awarded, when (1)
said attorney's fees are not actually paid to the client, (2) the client
pays any balance due remaining after the application of the collected fees
to its accounts, and (3) in the case of the collection of attorney's fees
in excess of the amount actually billed, the overage is credited towards
the client's next monthly billing. [See DR:3-102]
Committee Opinion February 25, 1984
See also LE Op. 773.