Is it permissible to accept a referral fee from another lawyer if the client is informed and the arrangement is reasonable?

Is it permissible to accept a referral fee from another lawyer if the client is informed and the arrangement is reasonable?

• A. Yes, under appropriate conditions (not guaranteed results and disclosed)
• B. No, never
• C. Yes, always
• D. Only if the lawyers are in the same firm

Answer: (A)

Sharing a legal fee with another attorney can be permissible when the client is fully informed and the arrangement is reasonable and properly disclosed in writing. The client must consent to the fee division in writing, the overall fee must be reasonable for the work performed, and each lawyer’s portion should reflect the actual contribution—typically in proportion to the work done by each lawyer. Importantly, the arrangement cannot be contingent on the outcome. When these conditions are met, accepting a referral fee from another attorney aligns with ethical practice and protects the client’s interests. If the arrangement isn’t disclosed, isn’t reasonable, or is tied to a guaranteed result, it would not be allowed.

Sharing a legal fee with another attorney can be permissible when the client is fully informed and the arrangement is reasonable and properly disclosed in writing. The client must consent to the fee division in writing, the overall fee must be reasonable for the work performed, and each lawyer’s portion should reflect the actual contribution—typically in proportion to the work done by each lawyer. Importantly, the arrangement cannot be contingent on the outcome. When these conditions are met, accepting a referral fee from another attorney aligns with ethical practice and protects the client’s interests. If the arrangement isn’t disclosed, isn’t reasonable, or is tied to a guaranteed result, it would not be allowed.