California Bar Ethics Opinion on Flat Fees — New Obligations for Pricing Conversations
The California State Bar's Committee on Professional Responsibility and Conduct (COPRAC) issued CAL 2026-210 on flat fees and termination.
BY CLIENT INTELLIGENCE DESK · JUNE 2, 2026 · 1 MIN READ
The California State Bar's Committee on Professional Responsibility and Conduct (COPRAC) issued CAL 2026-210 on flat fees and termination. As flat-fee arrangements expand beyond traditional practice areas into complex litigation and large firms, the opinion sets four enforceable requirements: scope and earning of the fee must be explicitly stated; advance fees may go into the operating account with proper written disclosure; unearned portions must be refunded if representation ends early without exception; and midstream modifications require compliance with Rule 1.8.1. For firms engaged in pricing conversations with in-house clients — particularly those moving toward fixed-fee structures on AI-assisted matters — this opinion creates concrete disclosure and refund obligations that pricing teams and BD professionals need to understand.