New York State Bar Association Ethics Opinions
Free plain-English summaries of legal ethics opinions issued by the New York State Bar Association, with full citations and source links on every page.
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May a New York disability-rights lawyer who relies on fee-shifting awards enter agreements with compensatory-service providers under which the providers pay a portion of the lawyer's fees, and refer clients to those providers?
Per the Committee, yes if the client gives informed consent under Rule 1.8(f) and informed consent confirmed in writing under Rule 1.7(b) for the Rule 1.7(a)(2) personal-interest conflict, provided th…
May a New York lawyer hold a financial interest in, divide fees with, or manage an Arizona-licensed alternative business structure (ABS) with nonlawyer owners?
The Committee concludes a New York lawyer may hold a passive financial interest in an out-of-state ABS that lawfully practices in its home jurisdiction. The lawyer may divide fees with the ABS under n…
May a New York attorney's nonlegal entity (here, one providing tax filings) share a percentage of revenue with a nonlawyer technology developer, and pay referral fees to other attorneys who refer clients to the entity?
Per the opinion, yes if the entity avoids being treated as a law firm under Rule 5.7. The attorney owners must give the Rule 5.7(a)(4) written disclaimer and otherwise avoid any reasonable client beli…
Can New York lawyers pay a referral fee to a partner who is licensed only in a foreign country, and must they supervise that partner's New York-related conduct?
The committee concluded that lawyers associated in the same firm may divide fees with a foreign-licensed partner under Rule 1.5(g), but the New York-admitted lawyers must supervise that partner under …
Can a New York lawyer who owns part of a title agency represent a client in a real estate deal while the agency also acts as title agent in the same deal?
The committee concluded the lawyer may not do both in the same transaction unless the lawyer's role at the title agency is purely ministerial and involves no negotiation for the underwriter; whether t…
Can a lawyer pay people who refer clients a flat fee for 'administrative' work, like filling out and filing forms, on each referred matter?
No. The opinion concludes that promising a nonlawyer referrer paid administrative work for each referred matter is a thing of 'value' given as compensation or a reward for the referral, which violates…
Can a lawyer accept real estate clients referred by an associate at the firm who is also a licensed real estate broker?
Yes, conditionally. The opinion concludes a lawyer may accept clients referred by an associate who is also a real estate broker, provided the lawyer does not share legal fees or real estate commission…
Can a lawyer use an online bidding platform that takes a percentage of the legal fee and vets the participating attorneys?
No. The opinion concludes that paying a non-lawyer-owned online bidding service a percentage of the legal fee violates Rule 5.4(a)'s bar on fee sharing; because the service vets and rates the lawyers'…
Can a lawyer pay to be listed on a website that promises to match clients with carefully vetted, highly qualified attorneys?
No. The opinion concludes that a website claiming to connect clients with carefully vetted, excellently qualified attorneys is an advertisement on the lawyers' behalf, and the lawyers' payment to be l…
Can a lawyer pay a nonprofit to be listed on its website as a sponsor or as a legal resource for victims?
A lawyer may buy ads on the site and may be listed as a 'sponsor' for a donation, but may not pay to be listed on a page that recommends lawyers to victims, which is a prohibited payment for a recomme…
Can a New York lawyer enter a collaboration agreement with an independent paralegal who refers clients to the lawyer and prepares forms, and how may the lawyer pay the paralegal?
Yes, subject to several rules. The opinion concludes a lawyer may enter a non-exclusive arrangement with an independent paralegal who refers clients and completes forms, but may not split legal fees w…
Can a New York lawyer who works only as a real estate broker, and provides no legal services, accept referral fees from an investment advisor?
Yes. The opinion concludes that a New York lawyer who provides only nonlegal real estate broker services, and gives the client a Rule 5.7(a)(4) written notice that the services are not legal services,…
Can a lawyer who retires under New York's OCA rules still collect a referral fee on cases handed to successor counsel?
Yes, but only if the retired lawyer keeps joint responsibility for the referred matter; an OCA-retired lawyer is still a lawyer, so Rule 5.4(a) does not bar the fee, but Rule 1.5(g) requires continuin…
Can a lawyer who owns a real estate company act as the lawyer on closings referred by a broker at that company, where the broker and the company split the commission?
No. The opinion concludes that because the lawyer has a financial interest in the brokerage commissions his company splits with its brokers, serving as the closing lawyer creates a per se non-waivable…
Is it advertising or prohibited solicitation for a lawyer to ask a fertility clinic to list him on its website as an assisted-reproduction lawyer?
It is advertising, not solicitation. The opinion concludes that asking to be listed on the clinic's website is attorney advertising subject to Rule 7.1, but is not a solicitation because it is not dir…
Can a lawyer pay to join an online matching service that picks 'the best traffic lawyer' for a client and vouches for that lawyer's track record?
No. The opinion concludes that a service that vouches for a lawyer's credentials and recommends the lawyer as the 'best' or 'right' choice is making a prohibited recommendation, so the lawyer's paymen…
Can a law firm refer its clients to a litigation financing company owned by the spouse of a lawyer who is Of Counsel to the firm?
No. The opinion concludes that because the Of Counsel lawyer could not personally advance litigation funding to clients under Rule 1.8(e), he cannot refer clients to his spouse's financing company, an…
Can a lawyer pay a referral fee to a lawyer who has since taken 'retired' registration status with the Office of Court Administration?
Yes, if the referring lawyer assumed joint responsibility for the matter. The opinion concludes that an OCA-retired lawyer is still a member of the bar, so Rule 5.4(a) does not bar the split, and the …
Can a lawyer also work as a wealth manager, charge the same clients for both, send clients to a financial planner for a referral fee, or sell financial products to non-clients?
The opinion concludes a lawyer may not provide legal and wealth management services to the same client for separate fees (an unconsentable conflict), may not take a referral fee for sending a law clie…
Can a lawyer refer a client to a litigation funding company owned by the lawyer's sibling for a non-recourse loan to cover litigation expenses?
Yes, with a written waiver. The opinion concludes the referral is not barred by Rules 1.8(e) or 1.8(i) because the lawyer has no interest in the sibling's company, but it creates a Rule 1.7(a)(2) pers…
Can a retiring lawyer who hands over clients' wills to another attorney collect a referral fee when those wills turn into estate work?
Only if the retiring lawyer assumes joint responsibility for the new representation under Rule 1.5(g), which requires keeping active attorney registration; a lawyer in 'retired' status or who has resi…
Can a lawyer who runs or works with an R&D tax-credit business pay or receive referral fees from lawyers and from the business?
The opinion concludes a lawyer's own tax-credit firm may not pay lawyer referral fees unless Rule 1.5(g) or 7.2 allows it; a lawyer employed by a non-lawyer-owned tax-credit firm may take a referral f…
Can a New York lawyer also work as a financial planner for the same clients, advertise the planning service, and take referral fees from investment firms?
A lawyer may provide both legal and financial-planning services if no significant conflict exists, but may not take brokerage commissions on products bought by legal clients, which is a nonconsentable…
Can a real estate lawyer and a spouse who is a real estate broker send each other client referrals?
Yes, with limits. The lawyer may take referrals from the broker spouse only if the spouse is uninvolved in the transaction and follows the lawyer-solicitation rules, and may refer clients to the spous…
When a lawyer takes over a deceased lawyer's cases, may the lawyer pay the deceased lawyer's estate a share of the fee, and how may fees be split if the case is referred to a third attorney?
The lawyer may pay the estate only the portion of the fee that fairly represents legal services the deceased lawyer actually performed; paying for a bare referral, where the deceased did no work, is a…
Can an immigration firm work with a nonlawyer foreign migration agent who refers clients and handles communication and translation, charge the client for those nonlegal services, and what must be disclosed?
Yes, if the relationship is not exclusive, the agent does not interfere with the lawyer-client relationship, the client consents to the referral conflict, and the lawyer pays nothing for referrals. Th…
Can a New York lawyer refer a client to an investment firm and accept a commission from that firm for managing the client's settlement money?
No. The opinion concludes that taking a fee or commission from an investment firm for referring a client whose funds came from the lawyer's representation creates a non-consentable conflict, because t…
Can a lawyer team up with a nonlawyer claims recovery firm that signs up clients, hires the lawyer to bring their antitrust claims, takes a one-third contingent commission, and pays the lawyer out of that commission?
Not on a systematic, continuing basis, because a claims recovery firm is not on the Appellate Division list of approved nonlegal professionals under Rule 5.8. Even a non-exclusive reciprocal referral …
Can a New York lawyer accept part of a real estate broker's commission as a referral fee instead of charging the client for legal work on the deal?
No. A lawyer may not accept a share of the broker's commission as a referral fee in lieu of charging the client a legal fee, even with the client's informed consent, because the lawyer's financial int…
Can a law firm sell advertising space to other professionals in its educational newsletter, and is the whole newsletter treated as lawyer advertising?
Yes. A firm may sell ad space in its newsletter to third parties, including other firms, as long as the rates carry no implied referral or fee-splitting arrangement. The entire newsletter counts as ad…
Can a lawyer mail a cover letter and an informational brochure to accountants and bankers hoping they will refer clients to the lawyer?
Yes, if the advertising rules are met. The mailing is permitted as advertising, but the lawyer may not have the accountants or bankers solicit clients on the lawyer's behalf, and may not give them any…
Can a New York real estate lawyer accept a referral fee from a home security company for clients who sign up using a code on flyers in the lawyer's office?
Yes. The opinion concludes that nothing bars a lawyer from being paid for providing passive space for a third party's flyers when the lawyer does not recommend the service and it is unrelated to the l…
Can a New York law firm enter an exclusive deal with a marketing company that does forensic mortgage analysis, pay it for referred clients, and tie its fee to the firm's legal fee?
No. The opinion concludes the arrangement is an impermissible cooperative business arrangement under Rule 5.8 because the company is not a listed profession, and the firm may not pay the company for r…
When a retiring lawyer sells a law practice, can the purchase price be structured as a percentage of fees the buyer earns after the sale?
Yes, within limits. Rule 1.17 lets a retiring lawyer take a share of post-sale fees as payment for goodwill if the amount and term fairly reflect the goodwill's value, but the lawyer may not be paid a…
Can a New York lawyer take client referrals from a non-lawyer firm and be paid an undisclosed cut of the flat fee the client pays that firm?
No. A lawyer may not accept referrals where the legal fee, in an amount never disclosed to the client, is taken from the fee the client pays a non-lawyer firm; that violates the duty to communicate fe…
Can lawyers who own a separate nonlegal business buy marketing leads for that business, even though their law firm could not buy leads for itself?
Yes, if the nonlegal entity has no lawyers, operates wholly separately from the firm, and discloses in writing that it provides no legal services. The firm is then not subject to the rules for that en…
Can a New York lawyer take foreclosure-case referrals from a non-lawyer company that telephoned the clients and collects a fee covering the lawyer's services?
No. The opinion finds the arrangement flawed on several grounds: the company's telephone solicitation is imputed to the lawyer, the client's single payment to the company effectively shares a legal fe…
Can a lawyer pay a marketing firm based on the number of clients it introduces?
No. Under Rule 7.2, a lawyer may pay the reasonable cost of marketing, but may not tie a marketing firm's compensation to the number of potential or actual clients it introduces, because that gives th…
Can a New York lawyer sell discounted legal services through a 'deal of the day' or group-coupon website like Groupon?
Yes, if the ad is not misleading and discloses that no lawyer-client relationship forms until the lawyer checks for conflicts and competence. The lawyer must fully refund a coupon buyer who cannot be …
Can a lawyer cut a contingent fee to share it with a non-attorney tax-reduction firm that refers clients, or be retained by that firm to serve its customers?
No. A lawyer may not reduce a contingent fee so the difference flows to a non-attorney tax-reduction firm that refers clients, because that is impermissible fee-splitting (or a cooperative business ar…
Can a lawyer offer a prize as an incentive for people to connect with the lawyer on Facebook, LinkedIn, or other social networking sites?
Yes, assuming the prize offer is not itself illegal. But if the offer's primary purpose is retention of the lawyer, it becomes an advertisement subject to Rule 7.1, and if it is also targeted at speci…
Can a lawyer set up a mutual referral arrangement with a debt-reduction company and charge clients a contingent fee based on the debt reduced?
Yes to both, with conditions. A non-exclusive reciprocal referral arrangement with a debt-reduction company is permitted, and the limited relationship here does not make the lawyer 'affiliated' with t…
Can a New York lawyer share a personal injury fee with an out-of-state lawyer who is not admitted in New York?
Yes, if the split meets Rule 1.5(g): proportional to each lawyer's work or a written assumption of joint responsibility, the client's written consent after disclosure of the division, and a total fee …
Can a lawyer refer litigation clients to a litigation financing company owned by the lawyer's spouse?
No, not to provide financial assistance the lawyer is personally barred from giving. Rule 1.8(e) bars a lawyer from advancing or guaranteeing living-expense funds to a litigation client, and that bar …
Can a lawyer who is also a real estate broker share her brokerage commission with lawyers who refer buyers or sellers to her?
Yes, but only if the referring lawyer is not representing the buyer or seller in that transaction, or, if the referring lawyer is, the lawyer remits or credits the referral fee to the client and obtai…
Can a lawyer email other lawyers asking them to refer cases, such as injuries from a particular drug, without it being a regulated solicitation?
Yes. Emails seeking referrals from other lawyers are not 'advertisements' or 'solicitations' under Rules 7.1 and 7.3, but they must still comply with Rule 7.4 (specialization claims) and Rule 8.4(c) (…
Can a New York firm split fees with a foreign law firm that refers it a New York matter and stays involved as a consultant?
Yes, with conditions. The committee concludes a New York firm may share a percentage of its fees with a foreign law firm on referred matters where the foreign firm's lawyers are bona fide lawyers with…
Can a lawyer run a radio or TV ad using a celebrity client's testimonial, name the celebrity, and pay the celebrity for their time?
A lawyer may use a celebrity client's testimonial, and name the celebrity, so long as it is not false, deceptive, or misleading and the ad meets the record-keeping rules. The lawyer may not pay or giv…
Can a New York lawyer join a business networking organization whose members are required to bring or exchange referrals?
No. The committee reaffirms that a lawyer may not participate in an organization that requires the lawyer to refer clients in exchange for other members' referrals, and concludes a lawyer also may not…
Can a lawyer pay a marketing company a flat fee for a bundle of pre-screened client leads, here for federal tax-relief clients?
No. Paying a marketing organization for leads to potential clients is compensation to obtain employment, which DR 2-103(B) prohibits, and neither of that rule's narrow exceptions applies.
Can a New York lawyer agree to swap client referrals with a securities broker or insurance agent who is not on the approved nonlegal-professions list?
Yes. The opinion concludes a lawyer may enter a nonexclusive reciprocal referral arrangement with a broker or insurance agent, provided no fees are shared and the lawyer discloses the arrangement and …
Can a New York lawyer refer clients to the lawyer's own non-legal business, and can that business refer customers back by phone or in person?
The opinion concludes that if the lawyer gives the DR 1-106 notice that the non-legal services are not covered by the attorney-client relationship, the lawyer may refer clients to the business without…
If a lawyer is disqualified from a matter by a conflict of interest, can the lawyer still collect a referral fee for sending it to another firm?
The opinion concluded that a lawyer disqualified on non-consentable conflict grounds may not receive a referral fee, because the lawyer cannot assume the joint responsibility that fee division require…
Can a lawyer join a business networking group whose members are required to refer clients to one another?
The opinion concluded that a lawyer may not participate in a business networking organization that requires members to refer clients to, and accept referrals from, other members in exchange for those …
Can a law firm pay a non-lawyer employee a percentage of the fees from matters the employee referred, now that the rule allows profit-sharing compensation?
The opinion concluded that the 1999 amendment letting a firm compensate non-lawyer employees on a profit-sharing basis does not allow paying an employee a percentage of fees attributable to matters th…
Can a lawyer take personal injury referrals from an accounting firm and let the firm collect its own contingent fee from the same client's recovery?
The opinion concluded the arrangement is prohibited: capping the legal fee so the accounting firm can take a separate contingent fee for unsought services gives the firm something of value for referra…
Can a lawyer take a medical malpractice case from a consultant who demands a contingent consultant's fee as the price of bringing the case, and can the two contingent fees together exceed the statutory cap?
The opinion concluded a lawyer may not take a case conditioned on agreeing to a consultant's contingent fee, and that a consultant's contingent fee combined with the lawyer's may be excessive, especia…
Can a lawyer who is on a nonprofit's referral list and receives referrals from it make a charitable donation to that organization?
The opinion concluded yes, as long as the donation is clearly charitable and is not part of a tacit arrangement to compensate the organization for the referrals; otherwise it would be paying for refer…
Can a lawyer accept a referral fee from an investment advisor for sending the lawyer's clients to the advisor?
The opinion concluded that a lawyer may not accept a referral fee from an investment advisor, because the conflict is non-consentable: the fee turns on how much of the client's money is entrusted to t…
Can an estate-planning lawyer accept a referral fee from an insurance company for steering a client who then buys life insurance?
The opinion concluded that an estate-planning lawyer may not accept a referral fee from an insurance company for recommending a client, because the conflict is non-consentable: life insurance is not f…
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Legal ethics opinions from the New York State 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.