Ellen Brotman of BrotmanLaw. Courtesy Photo Yikes! ABA's Latest Ethics Opinion Prohibits Nonrefundable Fees: Does It Change Things in Pa.?
In early May, the American Bar Association issued Formal Ethics Opinion 505, in which it opined that a fee is never "nonrefundable" and that a fee paid in advance of the provision of services can never be placed into a lawyer's operating account.
July 12, 2023 at 10:40 AM
7 minute read
Many solos and small firms charge their clients "nonrefundable" fees, intending to take an advance fee that can be used immediately to pay bills. In Pennsylvania, lawyers have termed these fees "nonrefundable," and, have placed these funds directly into their operating accounts. In early May, the American Bar Association issued Formal Ethics Opinion 505, in which it opined that a fee is never "nonrefundable" and that a fee paid in advance of the provision of services can never be placed into a lawyer's operating account. The opinion's synopsis states:
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