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.