Fee Agreement May Be Modified Midstream If Client Consents and Change Is Reasonable

Professional conduct standards on fees and lawyer-client communication permit an attorney to modify a fee agreement during a representation if the lawyer can establish that the change was reasonable under the circumstances and that the client freely consented after full disclosure, the American Bar Association’s ethics committee said Aug. 4 (American Bar Association Standing Committee on Ethics and Professional Responsibility, Formal Op. 11-458, 8/4/11).

The committee cautioned, however, that unless there was an unanticipated change justifying the increase, midstream rate hikes that significantly boost the lawyer’s compensation will almost certainly be found unethical and unenforceable.

Raised Eyebrows.

Although ...