On May 20, 2026, the ABA Standing Committee on Ethics and Professional Responsibility issued Formal Opinion 523 regarding “a lawyer’s ability to include provisions in an engagement agreement for the purpose of establishing them as obligations that would form a basis for withdrawal in the event of a client’s failure to abide by those obligations.”

Under both ABA Model Rule 1.16(b)(5) and Texas Disciplinary Rule of Professional Conduct 1.16(b)(5), a lawyer may withdraw from a client representation if the client fails substantially to fulfill an obligation to the lawyer regarding the lawyer's services and has been given reasonable warning that the lawyer will withdraw unless the obligation is fulfilled. ABA Opinion 523 acknowledges that that Model Rule 1.16(b)(5) is most often invoked when a client fails to fulfill an obligation regarding payment of fees and expenses. And…