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Legal Updates for Lawyers' Professional Liability

Pennsylvania Bar Association Formal Opinion 2025-100 Reinforces Written Fee Agreements as Essential for Compliance and Risk Management

Legal Updates for Lawyers’ Professional Liability – January 2026

January 1, 2026

by Scott R. Eberle

In Formal Opinion 2025-100, the Pennsylvania Bar Association Committee on Legal Ethics and Professional Responsibility emphasizes the importance of written fee arrangements. The recent Opinion clarifies the minimum requirements of Rule 1.5 (Fees) and discusses recommended best practices to reduce disciplinary and malpractice risk.

Rule 1.5(b) requires that when a lawyer has not regularly represented a client, the basis or rate of the fee must be communicated to the client in writing before or within a reasonable time after commencement of the representation. A written communication of fees is mandatory in nearly all engagements.

The only exception applies when a lawyer has regularly represented the client. Although the Rules of Professional Conduct do not define “regularly,” comment [1] to the Rule explains that the exception applies where the client has an evolved understanding of the fees to be charged.

The Opinion underscores that contingent fee arrangements are treated differently. Under Rule 1.5(c), a written fee agreement is always required for a contingent fee, regardless of the lawyer’s prior relationship with the client. The written contingent fee agreement must specify how the fee and expenses will be calculated. Additionally, at the conclusion of a contingent fee matter, a written closing statement showing the outcome of the matter, the remittance to the client, and the method of the determination of the fee is also required.

Although the Rules of Professional Conduct only require a written statement of the basis or rate of the fee, the Committee strongly recommends a more comprehensive written fee agreement, countersigned by the client, as a best practice to avoid malpractice claims and disciplinary complaints. Fee agreements that go beyond the minimum requirements of Rule 1.5 protect the rights and interests of both the lawyer and the client, prevent misunderstandings, and ensure the lawyer’s compliance with their communication obligations under Rule 1.4. The Committee suggests that a written fee agreement can be used to clarify, among other things, the identity of the client, the scope of the representation, and the expectations and obligations of both lawyer and client.

The Opinion also reminds lawyers that the writing required by Rule 1.5 must be retained for at least five years after termination of the attorney-client relationship pursuant to Rule 1.15(c).

Formal Opinion 2025-100 ultimately reinforces that written fee communications protect both clients and lawyers and are an essential part the lawyer-client relationship.

Legal Update for Lawyers’ Professional Liability – January 2026 is prepared by Marshall Dennehey to provide information on recent legal 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. We would be pleased to provide such legal assistance as you require on these and other subjects when called upon. ATTORNEY ADVERTISING pursuant to New York RPC 7.1 Copyright © 2026 Marshall Dennehey, all rights reserved. No part of this publication may be reprinted without the express written permission of our firm. For reprints or inquiries, or if you wish to be removed from this mailing list, contact MEDeSatnick@MDWCG.com. 

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