20090043 | Office of Legal Ethics Counsel & Advisory Committee of the Supreme Court of Missouri

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Informal Opinion Number: 20090043

Rules: 4–1.5

Client-Lawyer Relationship

Fees

QUESTION: Dealing with health insurance subrogation claims is very time consuming. In many cases Attorney spends far more time negotiating with health insurance than with the defendant. Does Attorney’s contingent fee cover only the work done against the defendant and the insurer or does it necessarily include resolving subrogation claims?

ANSWER: Attorney may charge a fee that is appropriate in light of the effort involved in obtaining the client’s goals in the representation. Normally, maximizing the client’s recovery in a tort claim necessarily involves resolving any subrogation claims, so some attorneys do not charge for this in addition to a fee for other work in the case. If the subrogation aspects involve substantial effort by the attorney, it is permissible to charge a fee that reasonably relates to that effort, but such additional fee must be clearly communicated to the client and the actual fee must be reasonable.

Informal Opinions are ethics advisory opinions issued by the Office of Legal Ethics Counsel to members of the Bar about Rule 4 (Rules of Professional Conduct), Rule 5 (Complaints and Proceedings Thereon), and Rule 6 (Fees to Practice Law) pursuant to Missouri Supreme Court Rule 5.30(c). Written summaries of select Informal Opinions are published for informational purposes as determined by the Advisory Committee of the Supreme Court of Missouri pursuant to Rule 5.30(c). Informal opinion summaries are advisory in nature and are not binding. These opinions are published as an educational service and do not constitute legal advice.

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