Full compliance with the rule is absolutely required; an attorney may not fail to return the client's file or
unearned fees even if the client asks them to continue the representation.
Not exact matches
Even in a flat
fee case, it is theoretically possible for
fees to remain
unearned at the conclusion of the matter, and thus the lawyer would need to return them but has no access to them.
Previously, some circuits had required a
fee split with a third party in order for there to be a § 2607 (b) violation, while others had followed the HUD policy statement and prohibited
unearned fees,
even when a settlement - service
fee was not split with a third party.