SUBJECT: Proposed Formal Opinion Interim No. 05-0001 (Modification of an Attorney Fee Agreement)

BACKGROUND: The State Bar Standing Committee on Professional Responsibility and Conduct (COPRAC) is charged with the task of issuing advisory opinions on the ethical propriety of hypothetical attorney conduct. In accordance with Tab 19, Article 2, Section 6(g) of the State Bar Board Book the Committee shall publish proposed formal opinions for a public comment period of no less than 60 days.

DISCUSSION/PROPOSAL: Proposed Formal Opinion Interim No. 05-0001 considers what are the ethical ramifications associated with a modification of an attorney fee agreement.

The opinion interprets rules 3-300, 3-700, and 4-200 of the Rules of Professional Conduct of the State Bar of California; and Business and Professions Code sections 6106, and 6147.

The opinion digest states: "Rule 3-300 of the Rules of Professional Conduct does not apply to a modification of a fee agreement unless the agreement confers on the attorney an ownership, security, possessory, or other pecuniary interest adverse to the client. While rule 3-300 does not per se apply to a modification of a fee agreement after the attorney-client relationship has commenced, any modification of an existing fee agreement must be fair, reasonable, fully explained, and consented to by the client. A number of factors will determine whether modification of a fee agreement meets this standard."

At its February 22, 2008 meeting and in accordance with its Rules of Procedure (State Bar Board Book Tab 19, Art. 2, Sec. 6(g)), the State Bar Standing Committee on Professional Responsibility and Conduct tentatively approved Proposed Formal Opinion Interim No. 05-0001 for a 90-day public comment distribution.

ANY KNOWN FISCAL/PERSONNEL IMPACT: None.

ATTACHMENTS:

* Proposed Formal Opinion Interim No. 05-0001

SOURCE: State Bar Standing Committee on Professional Responsibility and Conduct

COMMENT DEADLINE: August 01, 2008

DIRECT COMMENTS TO:
Angela Chang
Office of Professional Competence, Planning and Development
State Bar of California
180 Howard Street
San Francisco, CA 94105-1639
415-538-2116
415-538-2171 Fax