American Bar Association Ethics Opinions
Free plain-English summaries of legal ethics opinions issued by the American Bar Association, with full citations and source links on every page.
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Can a lawyer in a state that bans nonlawyer firm ownership passively invest in a firm with nonlawyer owners in a state that allows it?
Yes. The opinion concludes that a lawyer in a Model Rule 5.4 jurisdiction may make a passive investment in an alternative business structure (a firm with nonlawyer owners) operating where such firms a…
When a new lawyer takes over a contingent-fee case from a prior lawyer, do the fee-splitting rules apply, and what must the client be told?
The opinion concludes that when a successor lawyer replaces a prior lawyer in a contingent-fee matter, this is not a Rule 1.5(e) fee division (which covers lawyers working together), but the successor…
How must a lawyer handle a fee that has to be split with a lawyer at another firm?
Treat the other lawyer as a third person under Rule 1.15. The opinion concludes that the lawyer who receives the fee must hold it separate from the lawyer's own property, promptly notify the other law…
Does taking a referral fee make the referring lawyer subject to the conflict-of-interest rules?
Yes. The opinion concludes that a lawyer who refers a matter and shares the fee has undertaken representation of the client, so the arrangement is subject to Rule 1.7; where a conflict exists, the law…
Can a lawyer sell legal services through a daily-deal or group-coupon site like Groupon?
Coupon-style deals can be structured to comply, but prepaid deals are harder. The opinion concludes the marketer's retained percentage is an advertising cost (not fee sharing) if reasonable, and that …
Can a lawyer split a fee with a firm in a jurisdiction that allows fee sharing with nonlawyers?
Yes. The opinion concludes that a lawyer subject to the Model Rules may divide a fee through a single client billing with a lawyer or firm in a jurisdiction that permits nonlawyer fee sharing, even th…
Can a lawyer charge the client more for a contract lawyer's work than the lawyer paid for it?
It depends on how it is billed. The opinion concluded a lawyer could add a surcharge (profit) when a contract lawyer's work was billed as legal services, so long as the total fee was reasonable under …
Can a corporation rent out its in-house lawyers to other clients at a markup, or take a cut of a statutory fee award won by its in-house counsel, above what the lawyer cost the company?
The opinion concluded that an in-house lawyer who provides services to third parties for a fee, or who recovers a statutory fee award, violates Model Rule 5.4(a) by turning over to the corporate emplo…
Can a firm describe itself as 'affiliated,' 'associated,' or part of a 'network' with other firms, and what conflict and fee-sharing rules apply to those relationships?
The opinion concluded that lawyers must not mislead prospective clients about firm size, resources, or relationships with other firms, so terms like 'affiliated,' 'associated,' 'correspondent,' or 'ne…
Can a lawyer who takes a pro bono case for a nonprofit organization turn over the court-awarded attorney's fees to that organization without violating the bars on fee-sharing with nonlawyers or paying for referrals?
The opinion concluded that a cooperating or staff lawyer may share, or agree in advance to share, court-awarded fees with a sponsoring nonprofit pro bono organization, and that doing so violates neith…
If I am licensed in a state that bans law-firm partnerships with nonlawyers and also in D.C., which allows them, can I be a partner in a D.C. firm with nonlawyer partners without violating my home state's rule?
The opinion concluded that a lawyer licensed in both a jurisdiction that bars nonlawyer partnerships (Model Rule 5.4(b)) and one that permits them may be a partner in the permitting jurisdiction's fir…
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Legal ethics opinions from the American Bar Association interpret the rules of professional conduct for working lawyers, in response to inquiries from members and committees. They are not binding like court discipline decisions, but courts and discipline boards treat formal opinions as substantial guidance on how the rules apply. Every opinion above has a plain-English question and short answer, plus a link to the original source on the bar's site.