I referred a client to another lawyer. Do I get a share of all the fees that lawyer earns from the client, or only from the first case I referred?

Plain-English summary

The inquiring attorney asked whether he or she could be paid a referral fee on all fees paid to the lawyer to whom the work was referred by a client, or whether the referral fee was limited to the fees generated by the first case referred to a lawyer from another state. Because both attorneys were not members of the same firm, the attorney treated Rule 1.5(e) as applicable.

The panel set out Rule 1.5(e), which permits a division of a fee between lawyers not in the same firm only if the division is in proportion to the services each lawyer performed, 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; and the total fee is reasonable. The panel noted the comment's explanation that a fee may be divided by proportion of services rendered or by agreement, if all lawyers assume responsibility for the representation and the client is apprised of and consents to the agreement.

Applying the rule, the panel advised that a division of the fee between attorneys may be made if the division is in proportion to the work each performed, or by a written agreement with the client under which each attorney assumed joint responsibility for the representation; in addition, the client must consent to the division and the total fee must be reasonable. The panel framed the permissibility of any division around these Rule 1.5(e) conditions rather than by a fixed first-case limit.

Currency note

This opinion was issued in 1995, after the Rhode Island Supreme Court adopted the Model Rules of Professional Conduct effective November 15, 1988, and it applies Rule 1.5(e) 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 adjusted the fee-division provisions. 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 Treat this page as historical context, not current guidance.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: Did the panel say the referral fee covers all of the receiving lawyer's fees or just the first case?

A: The opinion did not adopt either fixed limit; it made any division turn on satisfying Rule 1.5(e)'s conditions rather than on whether the fees came from the first or later cases.

Q: What must be true for a fee division between different firms to be proper?

A: The opinion required that the division be proportional to each lawyer's services, or set by written agreement with the client under which each lawyer assumes joint responsibility, with the client's consent and a reasonable total fee.

Q: Does the client have a role?

A: Yes. The opinion required that the client be advised of and not object to the participation of all the lawyers, and consent to the division.

Background and rules framework

The opinion applied Rhode Island Rule of Professional Conduct 1.5(e) (Model Rule 1.5), which conditions any division of a fee between lawyers in different firms on proportionality to services or a written client agreement establishing joint responsibility, client notice without objection and consent, and a reasonable total fee. The panel treated these as the governing conditions for the scope of any referral or division arrangement.

Citations and references

Rules of Professional Conduct:

• Model Rule 1.5 / RI RPC 1.5(e) (fees; division of a fee between lawyers not in the same firm)

See also

• RI EAP Op. 95-15: A referral fee without work or a written agreement
• RI EAP Op. 97-16: Sharing a referral fee requires joint responsibility in writing

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%2095-18.pdf

Original opinion text

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

FINAL

ETHICS ADVISORY PANEL
OPINION # 95-18, Request # 578
Issued March 23, 1995

The inquiring attorney asks whether he/she may be paid a referral fee with respect to all fees paid to the lawyer to whom the work was referred by a client or whether the referral fee is limited to fees generated by the first case referred to a lawyer from another state. The inquiring attorney asserts that both attorneys are not members of the same firm. Therefore, Rule 1.5(e) is applicable. That Rule states the following:

(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 the Rule permits attorneys to divide a fee either based upon the proportion of services rendered or by agreement between attorneys, if all assume responsibility on a whole for the representation and the client is apprised of and consents to the agreement.

Based upon the facts provided by the inquiring attorney, a division of the fee between attorneys may be made if the division is in proportion to work performed by each attorney or by a written agreement with the client and each attorney assumed joint responsibility for the representation of the client. In addition, the client must consent to the division of the fee and the total fee must be reasonable.