Under Rule 7.2, when may a lawyer refer clients to another lawyer or a nonlawyer professional in a reciprocal referral arrangement?

Under Rule 7.2, when may a lawyer refer clients to another lawyer or a nonlawyer professional in a reciprocal referral arrangement?

• A. The agreement is exclusive and the client is not informed.
• B. The agreement is not exclusive and the client is informed of the existence and nature of the agreement.
• C. The client is paid a fee for referrals.
• D. The client is excluded from decisions about referrals.

Answer: (B)

Reciprocal referral arrangements are allowed under Rule 7.2 only if the arrangement is not exclusive and the client is informed about its existence and nature. The not-exclusive requirement protects the client’s freedom to choose and prevents the referral network from unduly constraining the client’s options. Disclosure about the arrangement—what it is, who’s involved, and how it might influence the referral—gives the client the information needed to decide whether to proceed and to assess any potential bias or benefit to the lawyer. Why the other scenarios don’t fit: an exclusive arrangement with no notice would unfairly limit the client’s choices and could pressure the client into using a particular path; paying a fee for referrals suggests an improper incentive that could compromise the lawyer’s independent judgment or the client’s best interests; and excluding the client from decisions about referrals removes essential informed consent.

Reciprocal referral arrangements are allowed under Rule 7.2 only if the arrangement is not exclusive and the client is informed about its existence and nature. The not-exclusive requirement protects the client’s freedom to choose and prevents the referral network from unduly constraining the client’s options. Disclosure about the arrangement—what it is, who’s involved, and how it might influence the referral—gives the client the information needed to decide whether to proceed and to assess any potential bias or benefit to the lawyer.

Why the other scenarios don’t fit: an exclusive arrangement with no notice would unfairly limit the client’s choices and could pressure the client into using a particular path; paying a fee for referrals suggests an improper incentive that could compromise the lawyer’s independent judgment or the client’s best interests; and excluding the client from decisions about referrals removes essential informed consent.