LEO: Fees - Collections  LE Op. 823


Fees - Collections.


September 19, 1986


A collections attorney and his client proposed to enter into an agreement

whereby the client's employees would provide administrative and clerical

assistance to the attorney. Because the large number of collections

referred to the attorney required a large amount of the employee's time,

the client wished to be reimbursed. At issue was whether payment to the

client from attorney's fees collected from judgments amounted to fee

splitting with a nonlawyer.


The committee concluded that such an arrangement was not improper. In

order to avoid conflict with DR:3-102, it would be preferable for the

client to bill the collection attorney on a periodic basis for the cost of

services rendered by the client's employees rather than to have the client

compute the cost of the services rendered and set off these charges

against attorney's fees. [ DR:3-102; LE Op. 541, LE Op. 534 and LE

Op. 480]


Committee Opinion September 19, 1986