Can a lawyer pay administrative fees to a for-profit lawyer referral service in Washington?

Plain-English summary

The inquirer asked about the propriety of an attorney's payment of administrative charges to a for-profit attorney referral service. The service arranged attorney-client relationships and imposed certain charges on the attorney, in part for managing invoices for the attorney's fees to the client.

The committee drew a distinction between not-for-profit and for-profit referral services. Unlike a lawyer's relationship with a not-for-profit lawyer referral service, RPC 7.2(c) bars an attorney from entering an agreement with a for-profit lawyer referral service that provides for the lawyer's payment of charges to the service. The committee concluded that under RPC 5.4(a) and 7.2(c) a lawyer may not pay the charges of a for-profit lawyer referral service for administrative or other charges associated with the service's activities.

Currency note

This opinion was issued in 2001, before the Washington State Bar Association's adoption of the 2006 revisions to the Rules of Professional Conduct. The referral and advertising rules, including the numbering of RPC 7.2, were revised in that process. 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 Treat this page as historical context, not current guidance.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, deadline, or requirement mentioned here.

Common questions

Q: Can a lawyer pay a for-profit lawyer referral service's administrative charges?

A: No. The committee said under RPC 5.4(a) and 7.2(c) a lawyer may not pay a for-profit lawyer referral service's administrative or other charges.

Q: Does the same bar apply to a not-for-profit referral service?

A: No. The committee distinguished not-for-profit services, noting that RPC 7.2(c)'s bar on paying charges applied to a for-profit service.

Background and rules framework

The opinion applies Washington RPC 7.2(c) (corresponding to the Model Rule on payment for recommending a lawyer's services, then numbered 7.2) and RPC 5.4(a) (corresponding to Model Rule 5.4(a), the bar on sharing legal fees with a nonlawyer). The committee read these rules together to prohibit a lawyer from paying a for-profit referral service's charges, while leaving room for the lawyer's relationship with a not-for-profit referral service.

Citations and references

Rules of Professional Conduct:

• Model Rule 7.2 / Washington RPC 7.2(c) (payment for recommending a lawyer's services)
• Model Rule 5.4 / Washington RPC 5.4(a) (sharing legal fees with a nonlawyer)

See also

• WSBA Ethics Op. 1071: Paid Personal Referral Service Prohibited
• WSBA Ethics Op. 1335: Fee Split With a Paralegal Company
• WSBA Ethics Op. 1143: Salaried Nonprofit Lawyer, Fee-Sharing

Source

• Landing page: https://ao.wsba.org/print.aspx?ID=1172

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

Advisory Opinion: 1932
Year Issued: 2001
RPC(s): RPC 5.4(a); 7.2(c)
Subject: Payment of an administrative fee to for-profit lawyer referral service

The inquirer wrote the committee regarding the propriety of an attorney’s payment of administrative charges to a for-profit attorney referral service. The service arranges attorney-client relationships, and imposes certain charges on the attorney for, in part, management of invoices for the attorney’s fees to client.

Unlike a lawyer’s relationship with a "not-for-profit" lawyer referral service, RPC 7.2(c) bars an attorney from entering an agreement with a "for-profit" lawyer referral service that provides for the lawyer’s payment of charges to the service. The Rules of Professional Conduct Committee believes that under Rule 5.4(a) and 7.2(c) a lawyer may not pay charges of a "for-profit" lawyer referral service for administrative or other charges associated with the service’s activities.