Committee on Professional Ethics — Attorney’s Fees: Opinion 913

NYSBA Committee on Professional Ethics

Attorney’s Fees

Securities as a Legal Fee

Opinion 913

Background: The inquiring attorney asked whether a lawyer may accept as compensation for legal services a hybrid fee combining a reduction in the lawyer’s customary hourly time charges with an equity interest in the client or the client’s company. 

Opinion: A lawyer may accept an equity interest in a client if the lawyer complies with the Rule of Professional Conduct governing business transactions with clients and the acceptance does not otherwise create a conflict for the lawyer or result in an excessive fee.