Can Lawyers Give a Referral Fee to a Non-Lawyer?
- According to Rule 5.4(a) of the ABA Model Rules of Professional Conduct, lawyers can't pay referral fees to a non-lawyer in most cases. Website affiliate referral fees are generally not prohibited so long as payment of the fees is not dependent on whether a client retains the attorney or firm. Non-lawyers cannot share in legal fees paid to a lawyer.
- ABA Rules 5.4(a)(1) and (2) allow a non-lawyer to be paid by an attorney or law firm on behalf of a former partner or former associate for a "reasonable time." A probate estate or specified individuals can be paid referral fees earned by a deceased lawyer.
- A lawyer or firm is allowed to pay compensation to an employee of the attorney where the non-lawyer is a member of an established compensation or retirement plan. This is allowed "even though the plan is based in whole or in part on a profit-sharing arrangement."
- ABA Rule 5.4(a)(4) allows payment of a share of legal fees from court-awarded fees to a non-profit organization who hired, retained or recommended employment of the attorney in the legal matter.
ABA Model Rules of Professional Conduct
Former or Deceased Law Partners
Employee Compensation or Retirement Plans
Court-Awarded Legal Fees from Non-Profit Organizations
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