Carr Maloney is proud to share that attorney Kelsey Williams is now a published author! Her article on a recent change to Maryland Rule 1.15 was featured in this month’s Maryland Bar Journal.
Kelsey’s piece provides an important overview of how the new Rule impacts attorneys across the state.
What Changed?
Effective July 1, 2025, attorneys practicing law in Maryland may no longer state that their fees are “earned upon receipt” in engagement agreements. Instead, under the amended Rule 19-301.15, legal fees and expenses paid in advance must now be deposited into a client trust account and withdrawn only as the attorney earns the fees or incurs the expenses.
Previously, attorneys could bypass this requirement if the client gave “informed consent, confirmed in writing.” The amended Rule eliminates this exception, closing the door on the “carve-out” for informed consent that mirrored the District of Columbia’s decision in In re Mance, 980 A.2d 1196 (D.C. 2009).
Advance Payments vs. Retainers
The change addresses advance payments, not traditional retainers. While the terms are often used interchangeably, they are distinct:
Advance payments are fees paid upfront for future services, earned as the attorney performs work.
Retainers are fees paid to secure an attorney’s availability and are earned upon receipt.
As clarified by the Maryland Supreme Court in Attorney Grievance Commission of Maryland v. Jones, 484 Md. 155 (2023), attorneys cannot simply relabel an advanced fee as a “retainer” to avoid compliance with the amended Rule.
Why It Matters
Fee arrangements and trust account management are among the most common issues that draw the attention of the Attorney Grievance Commission. Missteps in handling client funds can lead to disciplinary action. Attorneys should carefully review their engagement agreements to ensure compliance with the amended Rule 1.15.
If you have questions about fee arrangements or compliance with the Rule, Carr Maloney’s legal ethics team is here to help.