There are times when clients switch lawyers. It’s inevitable, and it happens for many reasons. The client may be dissatisfied, the client’s best friend knows a “better” lawyer, or the client may be trying to save some money. Regardless of the reason, the client often owes the lawyer a fee. What can lawyers ethically do in these situations? In some situations, the answer is to place an attorney’s lien on the file.
Maryland recognizes two types of attorney’s liens: a retaining lien and a charging lien. Retaining liens are a common law remedy, and a retaining lien is placed when the lawyer holds a client’s file ransom for payment. Ashman v. Schecter, 196 Md. 168, 173, 76 A.2d 139, 141-42 (1950). In contrast, a charging lien is recognized by statute as a mechanism for the lawyer to assert a lien on a client’s potential recovery. See, Md. Bus. Occ. & Prof. Code Ann. Section 10-501; Md. Rule 2-652.
From a high level, retaining liens are common sense but are nonetheless problematic. Pursuant to Md. Rule 19-301.16(d), upon termination of representation, an attorney must surrender the papers and property to which the client is entitled. Rule 1.16 also permits the attorney to retain papers relating to the client to the extent permitted by other law. Therefore, the rules permit attorneys to hold onto the file if there are unpaid fees, but Rule 1.16 also requires the lawyer to protect the client’s interests, even when the lawyer has been fired. Thus, if placing a retaining lien on the file will harm the client, the lawyer asserting a retaining lien potentially exposes himself or herself to discipline. Attorney Grievance Commission v. Rand, 445 Md. 581 (2015). The rationale is simple — the client’s needs are more important than the lawyer’s, and there are other ways to perfect a lien or collect unpaid fees. Experience thus dictates that retaining liens should only be used in limited situations.
While retaining liens have ethical pitfalls because of the tension between the right to hold onto the file as security and the duty to turn over client property so as to avoid harm to the client, a charging lien is different. Under Bus. Occ. & Prof. Section 10-501, an attorney has a lien on both the client’s cause of action and the proceeds of the client’s settlement, judgment or award if there is a fee agreement between the lawyer and the client. As such, in many cases, a lawyer can assert a charging lien if the client wishes to hire a new lawyer.
It is easy to assert a charging lien, if appropriate. Per Md. Rule 2-652, the lawyer simply needs to serve written notice via certified mail or personal delivery upon the client and each person against whom the lien is to be enforced (likely the subsequent lawyer). Voila — the lien has been asserted. Under Rule 19-301.15, the subsequent lawyer must safeguard the lien, if valid.
The procedures for determining the propriety or amount of the lien are simple, too. If there is no agreement and the lien relates to a case pending in Circuit Court, the attorney can simply file a motion to have the lien rights adjudicated within the pending case. Md. Rule 2-652(b)(1). If no case is pending, then any stakeholder may file a complaint to adjudicate the rights in Circuit Court. Md. Rule 2-652(b)(2). Either way, the rules are designed to have the lien rights adjudicated efficiently.
One final note about attorney’s liens. Section 10-501 requires a specific agreement between the lawyer and client. From my perspective, lawyers are best served by addressing all fee issues, including liens, failure to pay, and obligations under Md. Rules 19-301.5, 19-301.15 and 19-301.16 in a written fee agreement. The rules already require most fee agreements to be in writing. I recommend lawyers including provisions about charging liens in fee agreements in the event the need arises to assert a statutory charging lien.
This article originally appeared in The Daily Record on March 5, 2026.
Goodell DeVries defends various professionals in Maryland, the District of Columbia, and Virginia, including lawyers and law firms. Many of these cases are ethics matters involving Bar Counsel. If you have questions about the above or are a Maryland lawyer facing discipline, please contact us at EthicsHelp@gdldlaw.com.