88-6.

Case DateOctober 22, 1988
CourtAlaska
Alaska Ethics Opinion 1988. 88-6. Ethics Opinion No. 88-6Contingent Fee or Lien on Real Property in Quiet Title Litigation.The Committee has been asked whether it is unethical for an attorney to enter into an agreement with a client to secure the attorney's fees by means of a lien on real property which is the subject matter of litigation brought by the attorney on behalf of the client. Further, and as an alternative, the Committee has been asked if a contingent fee arrangement can be negotiated with the client under which the client would agree to assign an interest in real property subject to the litigation to the attorney as a contingent fee. The attorney represents the former owner of a large parcel which was subsequently subdivided and sold to a number of purchasers. None of the subsequent transactions were recorded, and many of the purchasers have ceased making payments due to misrepresentations. The former owner has retained the attorney to bring suit to set aside the original conveyances. The former owner is unable to afford the fees, and the attorney wishes to either secure the fees through an attorney's lien on the property or negotiate an assignment of an interest in the property, in the event the property is recovered from the. purchasers. DR 5-103 of the Code of Professional Responsibility proves that: (A) A lawyer shall not acquire a proprietary interest in the cause of action or subject matter of litigation he is conducting for a client, except that he may: (1) Acquire a lien granted to secure his fee or expenses. (2) Contract with a client for a reasonable contingent fee in civil case. EC 5-7 recognizes that it is not improper for a lawyer to protect his right to collect a fee for his services by the assertion of legally permissible liens, even though by doing so he may acquire an interest in the outcome of litigation. It further recognizes that although a contingent fee...

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