As of July 1, 2025, Maryland Rule of Professional Conduct (“MRPC”) 19-301.15 was changed to prevent attorney’s from utilizing “earned upon receipt” fee arrangements with clients. Maryland previously followed the District of Columbia Supreme Court decision in In re Mance, which permitted earned upon receipt fee agreements, provided an attorney received the client’s informed consent to said agreement in writing. 980 A.2d 1196 (D.C. 2009).
It was determined that such “earned upon receipt” arrangements could be problematic, including situations where a client may have paid a large sum of money for legal representation or results that do not ultimately manifest. Such a situation could be perceived as detrimental to the reputation of lawyers.
As a result, the updated MRPC 19-301.15 now mandates that advanced fees from a client must first be deposited into a client trust account. While general retainers, flat-fees, or fee for services are still permitted, the revised MRPC eliminates the “earned upon receipt” arrangement whereby fees can be deposited directly into a general operating account. Rather, the fees cannot be disbursed from trust until earned