PA Supreme Court Held that Rule 1.5(A) Does Not Apply Where an Attorney Files a Fee Petition Seeking to Recover Fees on Behalf of His Client from an Adverse Party

The Pennsylvania Supreme Court considered whether an attorney has violated Pennsylvania Rule of Professional Conduct 1.5(a) when the attorney files a petition to recover fees under Pennsylvania’s bad faith statute and the court finds that the amount of the fees sought to be recovered is excessive. In finding no disciplinary violation of Rule 1.5(a), the court held that Rule 1.5(a) does not apply where an attorney files a fee petition seeking to recover fees on behalf of his client from an adverse party. 

Rule 1.5(a) provides: “[a] lawyer shall not enter into an agreement for, charge, or collect an illegal or clearly excessive fee.” In reviewing the balance of the Rule, including the factors to be considered when determining whether a fee is excessive, the court found the Rule is intended to protect clients from being charged excessive fees and is not applicable when fees are sought to be recovered from third parties. 

The Pennsylvania Supreme Court also considered the application of Pennsylvania Rule of Professional Conduct 8.4(d) to disciplinary matters. Rule 8.4(d) provides that it is professional misconduct for a lawyer to “engage in conduct that is prejudicial to the administration of justice”; and the Hearing Committee specifically requested guidance on its application. The Pennsylvania Supreme Court held: (1) an attorney cannot be found to have violated Rule 8.4(d) without a finding that the attorney violated another Rule of Professional Conduct; and (2) to establish a violation of Rule 8.4(d), there must be a finding the attorney violated “the rules prohibiting deceit, dishonesty, fraud or misrepresentations” and that such violation “results in the actual prejudice by thwarting or interfering with the administration of justice.” 

_{Case Law Alerts, 1st Quarter, January 2025 is prepared by Marshall Dennehey to provide information on recent developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. Copyright © 2024 Marshall Dennehey, all rights reserved. This article may not be reprinted without the express written permission of our firm.}