The Board of Professional Conduct has issued an advisory opinion addressing the permissibility of an alternative fee arrangement under the Ohio Rules of Professional Conduct. The opinion replaces Adv. Op. 1995-7 that analyzed the issue under the former Code of Professional Responsibility.

Lawyers often enter into fee agreements with clients under which the lawyer charges an hourly rate for the services provided or a contingent fee that is based on a percentage of the recovery the lawyer obtains for the client. Advisory Opinion 2024-03 concludes that a lawyer may not enter into a fee agreement that converts an hourly rate to a contingent fee dependent upon whichever results in the larger fee to the lawyer. The board reasoned that such an agreement likely interferes with a client’s decision to settle a matter and, in some circumstances, may result in the lawyer charging or collecting an unreasonable or excessive fee.