Some conclude that the practice is unethical. We are aware of none that bless the procedure. Whether a state uses the model code or the model rules appears to make no difference in the results. With respect to the confidentiality issue, the code permits disclosure of confidences and secrets necessary to establish or collect the lawyer's fee. The DR provision is intended, we believe, for situations where a lawyer is engaged in collection action against a client over a fee.
Many states focus on obtaining the client's consent to the disclosure of confidences and secrets.
Thus the lawyer is in the position of explaining to, and arguably trying to convince the client that, giving the consent would not be adverse to the client's interests. We stated that there was no distinction between an attorney suing a client to collect a fee and an insurance company submitting a bill to an outside auditor . We no longer hold that there is no dist inction between an attorney suing a client to collect a fee and an insurance company submitting a bill to an outside auditor. Furthermore, if the lawyer knows or should know that the insurer is submitting the bill to third party auditors, the bills must not contain confidences or secrets. The first level of concern is answered in our response to the first question posed.