VSB Seeks Comment on Amendments to Rule 1.5 Regarding Nonrefundable Legal Fees
August 30, 2024
The Virginia State Bar seeks public comment on proposed amendments to Rule 1.5, Fees. The proposal adds a new paragraph (g) stating that nonrefundable advanced legal fees are prohibited, reiterating the conclusion established in Legal Ethics Opinion 1606 (1994; approved by the SCV November 2, 2016).
The proposed amendments also add new comments [10] and [11] explaining why nonrefundable legal fees are unreasonable and compromise the client’s rights to terminate the lawyer-client relationship and to receive a refund of any unearned fee upon termination of the representation. Comment [11] also explains the concept of a retainer and that it is distinguished from an advanced legal fee because a retainer is paid to ensure the lawyer’s availability rather than for legal services to be provided.
Inspection and Comment
The proposed rule amendments may be inspected below, or at the office of the Virginia State Bar, 1111 East Main Street, Suite 700, Richmond, Virginia 23219-0060, between the hours of 9 am and 4:30 pm, Monday through Friday.
Any individual, business, or other entity may submit written comments in support of or in opposition to the proposed rule amendments with Cameron M. Rountree, executive director of the Virginia State Bar, not later than October 30, 2024. Comments may be submitted via email to [email protected].
View proposed amendments to Rule 1.5 (pdf)