Arkansas Code Annotated

Ark. Code Ann. § 16-22-302 (2026)

Compensation governed by contract

✓ current as of May 2026

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The compensation of an attorney at law, solicitor, or counselor for his services is governed by agreement, expressed or implied, which is not restrained by law.

History. Acts 1989, No. 293, § 1.

Publisher's Notes. As to repeal of former provisions relating to lien of attorney, see Publisher's Notes to this subchapter.

Research References

U. Ark. Little Rock L.J.

Survey—Miscellaneous, 11 U. Ark. Little Rock L.J. 235.

Case Notes

Construction.

Former similar section was remedial in character and was to be liberally construed. Slayton v. Russ, 205 Ark. 474, 169 S.W.2d 571 (1943); Monsanto Chem. Co. v. Grandbush, 162 F. Supp. 797 (W.D. Ark. 1958) (preceding decisions under prior law).

Applicability.

The attorney's lien statutes, §§ 16-22-301 — 16-22-304, do not apply to cases in which an attorney is terminated for cause. Williams v. Ashley, 319 Ark. 197, 890 S.W.2d 260 (1995).

Compliance.

Strict compliance with the statute is not required, substantial compliance will suffice. Gary Eubanks & Assocs. v. Black & White Cab Co., 34 Ark. App. 235, 808 S.W.2d 796 (1991).

Attorney failed to comply with this section where the letter did not contain notice of intent to assert an attorney's lien on the proceeds of the claim, the letter was not dispatched by registered mail, and did not contain the signature of attorney or client. Gary Eubanks & Assocs. v. Black & White Cab Co., 34 Ark. App. 235, 808 S.W.2d 796 (1991).

Contingency Fees.

Contingency contracts for legal services are valid and enforceable, and when those services have been performed as contemplated in contract, attorney is entitled to fee fixed in the contract and to lien granted by attorney's lien provisions. Former statute did not authorize an attorney to recover full contingency fee under contract where contract had not been fully performed, and attorney was limited to recovery of a reasonable fee for his services. Henry, Walden & Davis v. Goodman, 294 Ark. 25, 741 S.W.2d 233 (1987), superseded by statute as stated in, Salmon v. Atkinson, 355 Ark. 325, 137 S.W.3d 383 (2003) (decision under prior law).

Contract.

There was no requirement under former statute that a contract for the compensation of attorney be in writing. Equifax, Inc. v. Luster, 463 F. Supp. 352 (E.D. Ark. 1978), aff'd, Arkansas La. Gas Co. v. Luster, 604 F.2d 31 (8th Cir. 1979) (decision under prior law).

Discharge for Cause.

An attorney discharged for cause is entitled only to a “reasonable fee” rather than a contract fee. Crockett & Brown v. Wilson, 314 Ark. 578, 864 S.W.2d 244 (1993).

Where attorney was discharged for cause, this section was not applicable, and the chancellor properly awarded a reasonable fee for attorney's services rendered to the date of termination, rather than at the contracted rate. Williams v. Ashley, 319 Ark. 197, 890 S.W.2d 260 (1995).

Discharge Without Cause.

Where an attorney was retained to represent an heir in the settlement of an estate upon an agreement that he should receive a certain percentage of the heir's interest in the estate and was discharged without cause before the estate was settled and suit was brought at once, he was entitled to recover his expenses and the value of his services but not to recover the amount of compensation agreed upon, as the amount that would be due under the contract could not be ascertained until the estate was settled. Weil v. Finneran, 70 Ark. 509, 69 S.W. 310 (1902) (decision under prior law).

Cited: Lancaster v. Fitzhugh, 310 Ark. 590, 839 S.W.2d 192 (1992); Fox v. AAA U-Rent It, 341 Ark. 483, 17 S.W.3d 481 (2000).

Notes of Decisions

Cited in 11 cases, 1991–2014 · leading case: McDermott v. McDermott, 986 S.W.2d 843 (Ark. 1999).

Sort: Relevance Newest Treatment

McDermott v. McDermott, 986 S.W.2d 843 (Ark. 1999). · cites it 5× “The General Assembly has expressly protected the contractual rights of attorneys in their fee agreements with clients by the enactment of the attorney's lien statute, now codified at Ark.Code Ann. § 16-22-302 to 304 (1989). The legislature's intent is set forth in section…”

Crockett & Brown, P.A. v. Courson, 849 S.W.2d 938 (Ark. 1993). · cites it 4× “The material part of the 1989 act, Ark. Code Ann. § 16-22-302 , provides: "The compensation of an attorney at law, solicitor, or counselor for his services is governed by the agreement, expressed or implied, which is not restrained by law.”

Death & Permanent Total Disability Trust Fund v. Brewer, 65 S.W.3d 463 (Ark. Ct. App. 2002). · cites it 2× “Brewer has never ended his contractual relationship with his attorney. There has not been any settlement or compromise of this case with or without the consent of Mr.”

Morgan v. Chandler, 241 S.W.3d 224 (Ark. 2006). · cites it 2× “Because of this, Morgan’s argument regarding summary judgment and his filed affidavit simply have no relevancy to these facts.”

Fox v. AAA U-Rent It, 17 S.W.3d 481 (Ark. 2000). · cites it 2× “Ark. Code Ann. § 16-22-302 (Repl. 1999). We agree with the chancery court that no express or implied contract arose under these facts.”

Finnegan v. Johnson, 932 S.W.2d 344 (Ark. 1996). “1994), on which appellant relies in seeking his lien, allows an attorney to obtain a lien for services based on his agreement with his client to provide for compensation in the event of settlement or compromise.”

Ouachita Trek & Dev. Co. v. Rowe, 17 S.W.3d 491 (Ark. 2000). · cites it 2× “2 OTDC’s point heading on this issue mentions Ark. Code Ann. § 16-22-302 , but their brief assigns error only under § 16-22-308.”

In re Rogers, 519 B.R. 267 (Bankr. E.D. Ark. 2014). “) The Notice then references an attorney’s lien under Arkansas Code Annotated §§ 16-22-302 through 304 and “in accordance with the applications for attorneys’ fees signed by the Debtor indicating that any fee refunds would be returned to their attorney.”

Meredith v. Buchman, 101 F. Supp. 2d 764 (E.D. Ark. 2000). “Therefore, it is the intent of §§ 16-22-302 - 16-22-304 to allow an attorney to obtain a lien for services based on his or her agreement with his or her client and to provide for compensation in case of a settlement or compromise without the consent of the attorney.”

Lancaster v. Fitzhugh, 839 S.W.2d 192 (Ark. 1992). · cites it 3× “Here the trial court simply entered declaratory judgment that the lawyer was entitled to the amount contracted for.”

Eubanks v. Black & White Cab Co., 808 S.W.2d 796 (Ark. Ct. App. 1991). · cites it 3× “The trial court granted appellee’s motion, holding that appellant’s actions were insufficient under Ark. Code Ann. § 16-22-302 (1987) to put appellee on notice of appellant’s claim to a lien.”

— Ark. Code Ann. § 16-22-302(a)(l) — 1 case

Eubanks v. Black & White Cab Co., 808 S.W.2d 796 (Ark. Ct. App. 1991). “The trial court granted appellee’s motion, holding that appellant’s actions were insufficient under Ark. Code Ann. § 16-22-302 (1987) to put appellee on notice of appellant’s claim to a lien.”

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