Another lawyer who is not in my firm wants me to take on a client and share one-third of the fee. Is that fee-splitting arrangement allowed under Rule 1.5?

Plain-English summary

The inquiring attorney represented Client A against B in a commercial claim. B's attorney (Attorney #2) suggested that the inquiring attorney's office represent Client C in future commercial claims, and proposed that the inquiring attorney share one-third of the fee with Attorney #2. The inquiring attorney asked whether that fee arrangement violated any ethical rules.

The Panel identified Rule 1.5 ("Fees"), and specifically Rule 1.5(e), as the applicable rule. Rule 1.5(e) permits a division of a fee between lawyers not in the same firm only if the division is in proportion to the services performed by each lawyer or, by written agreement with the client, each lawyer assumes joint responsibility for the representation; the client is advised of and does not object to the participation of all the lawyers involved; and the total fee is reasonable. The Panel also quoted the Comment describing a fee division as a single billing to the client covering the fees of lawyers not in the same firm.

The Panel concluded that the inquiring attorney may divide a fee with Attorney #2 under Rule 1.5(e)(1), (2), and (3), provided the division is proportionate to the services rendered by each lawyer or made by written agreement in which each lawyer assumes joint responsibility, the client is advised and does not object to the attorneys' involvement, and the total fee is reasonable.

Currency note

This opinion was issued in 1994 (Opinion 94-51, issued July 27, 1994), after the Rhode Island Supreme Court adopted the Model Rules of Professional Conduct effective November 15, 1988, and it applies Rule 1.5 as originally adopted. The Rhode Island Supreme Court later revised the Rules of Professional Conduct in 2007 as part of the nationwide Ethics 2000 process, which amended Rule 1.5. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule mentioned here.

Common questions

Q: Can I split a fee with a lawyer who is not in my firm?

A: The Panel concluded yes, under Rule 1.5(e), if the division is proportionate to each lawyer's services or the lawyers assume joint responsibility by written agreement, the client is advised and does not object, and the total fee is reasonable.

Q: Does the client have to be told about the fee split?

A: Yes. The Panel required that the client be advised of and not object to the participation of all the lawyers involved.

Q: What are the three conditions the Panel applied?

A: Proportionate division (or written joint responsibility), the client's advised non-objection to all lawyers' participation, and a total fee that is reasonable.

Background and rules framework

The opinion interprets Rhode Island Rule of Professional Conduct 1.5 (fees), the analog of Model Rule 1.5. Rule 1.5(e) governs division of fees between lawyers who are not in the same firm and imposes three conditions: proportionality (or written joint responsibility), client notice and non-objection, and overall reasonableness of the total fee. The Panel applied all three to the proposed one-third split.

Citations and references

Rules of Professional Conduct:

• MR 1.5 / RI RPC 1.5(e) (fees; division of fees between lawyers not in the same firm)

See also

• RI EAP Opinion 94-33: lawyer may waive costs against a client's recovery under Rule 1.8(e)
• RI EAP Opinion 94-23: loan to a non-client under Rule 1.8

Source

• Landing page: https://www.courts.ri.gov/attorney-resources/Pages/Ethics-Advisory-Panel-default.aspx
• Original PDF: https://www.courts.ri.gov/Opinions/EAP%2094-51.pdf

Original opinion text

Best-effort transcription from a scanned PDF. Minor errors may remain; the linked PDF is authoritative.

ETHICS ADVISORY PANEL
OPINION #94-51 REQUEST #521
Issued July 27, 1994

The inquiring attorney represents Client A against B in a commercial claim. B's attorney, Attorney #2, suggested that the inquiring attorney's office represent Client C in future commercial claims. Attorney #2 suggests that the inquiring attorney share one-third of this fee with Attorney #2. The inquiring attorney asks whether or not the fee arrangement between him/herself and Attorney #2 violates any ethical rules.

Rule 1.5 entitled "Fees" is the applicable rule under this set of circumstances. Particularly Rule 1.5(e) addresses division of fees between lawyers who are not in the same law firm. The rule states that:

(e) A division of a fee between lawyers who are not in the same firm may be made only if:

(1) the division is in proportion to the services performed by each lawyer or, by written agreement with the client, each lawyer assumes joint responsibility for the representation;

(2) the client is advised of and does not object to the participation of all the lawyers involved; and

(3) the total fee is reasonable.

The comments to Rule 1.5(e) state that "A division of fee is a single billing to a client covering the fee of two or more lawyers who are not in the same firm . . .. Paragraph (e) permits the lawyers to divide a fee on either the basis of the proportion of services they render or by agreement between the participating lawyers if all assume responsibility for the representation on a whole and the client is advised and does not object." The inquiring attorney may divide a fee with Attorney #2 pursuant to Rule 1.5(e)(1)(2) and (3) provided that the division is proportionate to services rendered by each lawyer or by written agreement with the client, joint responsibility is assumed by each lawyer, the client is advised and does not object to the attorneys' involvement and the total fee is reasonable.