Read Illinois Rule of Professional Conduct 1.5 Fees
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Rule 1.5 Fees
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Opinion 25-02 |
Advertising and Solicitation | Lawyer Referral Services | Sharing Fees With Nonlawyers
An Illinois attorney would violate the Illinois Rules of Professional Conduct by accepting clients from a for-profit, third-party client referral service that (1) charges clients a fixed fee for petty criminal and traffic offense cases, (2) pays a lawyer in the service’s network a portion of the fixed fee, and (3) offers a money-back guarantee to the client if the client does not “win” the case. Even if the referral service did not contain these problematic features, an Illinois attorney still would violate the Rules of Professional Conduct if the referral service is one that (a) fails to disclose the use of non-attorney actors in advertising directed to potential clients, or (b) requires the lawyers to communicate with clients on an online platform monitored by the referral service, with no guarantee of confidentiality and no apparent disclosure to and informed consent of the client. Further, using referral services such as those described in this opinion also would raise other problems, including the potential that the lawyer would be unable to comply with their obligations under the Rules of Professional Conduct with respect to the charging of fees, including the obligation to ensure the fee charged is a reasonable one.
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Opinion 23-03 |
Business Transactions With Clients | Conflict of Interest | Referral Fees and Arrangements
A lawyer who receives compensation in exchange for the referral of clients to an investment advisor has a conflict of interest and is involved in a business transaction with a client. Whether a lawyer can engage in such a transaction must be analyzed on a case-by-case basis.
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Opinion 21-04 |
Division of Fees | Referral Fees and Arrangements
An Illinois lawyer may enter into a fee-sharing agreement with an out-of-state lawyer who refers a personal injury case to the Illinois lawyer so long as the agreement complies with the applicable Illinois Rules of Professional Conduct and the corresponding rules of the foreign jurisdiction.
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Opinion 16-04 |
Conflict of Interest | Division of Fees | Fees and Expenses | Of Counsel Designation
A lawyer concentrating his or her practice in tax law may be “of counsel” to a law firm if the relationship with the firm is close and continuing. The lawyer will not be considered as being in a separate firm for the purposes of Rule 1.5(e) or for the purposes of disqualification due to a conflict of interest.
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Opinion 14-01 |
Client Funds and Property | Fees and Expenses
A lawyer may accept payment for earned services and expenses by credit card, but any security retainers paid by credit card must be deposited directly into the lawyer’s trust account. A lawyer accepting credit card payments for both earned fees and security retainers should designate two accounts – one a business account, and a one a trust account – to receive the payments. Further, given the complexity of the rules implicated by credit card payments, a lawyer must obtain a thorough understanding of the agreement he or she will sign with the credit card company before accepting credit card payments. Also, the Rules of Professional Conduct do not prohibit a lawyer from charging a service fee to a client when the client uses a credit card, so long as the fee is reasonable and disclosed in advance to the client, preferably in writing.
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Opinion 02-02 |
Client Funds and Property | Fees and Expenses
Client deposited funds into Firm's trust account for a specific transaction. The transaction never closed. More than five years later, Client and subsidiaries were involuntarily dissolved by Illinois Secretary of State. Firm may properly transfer the funds to its operating account in satisfaction of its claim for attorney fees if it has obtained written consent from the dissolved Client, through one of its former officers. Absent consent, Firm should reduce its claim to judgment and thereafter obtain a court order to set off its judgment lien against the funds held in the trust account.
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Opinion 99-03 |
Advertising and Solicitation | Communication With Represented Person | Conflict of Interest - Transactional Matters
A lawyer retained as counsel for a savings and loan association may not contact an applicant for a home loan to be issued by the savings and loan association if it is known that the home loan purchaser is represented by counsel. Further, such communication constitutes improper solicitation of professional employment for pecuniary gain.
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Opinion 98-03 |
Business Transactions With Clients | Conflict of Interest | Dual Professions
Patent law firm may not provide or receive a royalty-type fee for services matching client-inventors with client-product promoters, unless the firm can rebut the presumption of undue influence and the firm obtains informed written consent of all affected clients to the fee arrangement, to the potential disclosure of confidential information, and to the inherent conflicts of interest. The specific facts of particular situations may make consent to certain conflicts of interest unreasonable. Any fees for such services must be fair and reasonable to the clients.
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Opinion 97-04 |
Business Transactions With Clients | Referral Fees and Arrangements
A lawyer may not properly take a referral fee from an investment advisor for referring a client to the advisor unless the lawyer rebuts the presumption of undue influence that arises when a lawyer enters into a business transaction with the client; the presumption may be rebutted by showing the transaction was fair, the client had the opportunity for independent advice of counsel and consented to the transaction after full disclosure.
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Opinion 96-11 |
Communication With Client | Impaired Lawyer
Lawyer, who represents clients transferred to him by another lawyer, owes no legal duty to the transferring lawyer or to the clients involved to inform the clients of the resumption of practice by the transferring lawyer who previously suspended his practice while temporarily physically incapacitated. Lawyer has an obligation to keep his clients reasonably informed about the status of their cases and must promptly comply with reasonable requests by the clients for such information, but this obligation does not create a legal or ethical duty on the part of lawyer to relay information regarding the referring attorney’s practice.
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Opinion 95-16 |
Contingent Fees
A contingent fee agreement in post-judgment dissolution of marriage, collection and bankruptcy proceedings, if written and reasonable in amount, is not in violation of the Rules of Professional Conduct.
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Opinion 95-11 |
Client Funds and Property | Fee Agreements
Absent a narrowly drawn power of attorney, Law Firm cannot negotiate a check on behalf of a missing client and must keep safe any such check.
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Opinion 93-01 |
Business Transactions With Clients | Dual Professions
Attorney may provide legal services and conduct title insurance business as agent so long as legal services are conducted in compliance with the Illinois Rules of Professional Conduct.
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Opinion 92-22 |
Former Client
- Use of any information relating to representation cannot be used by attorney to disadvantage of former client.
- Absent consent, confidences and secrets of client gained in the course of professional relationships cannot be disclosed.
- Use of client confidences and secrets as well as any information relating to the representation of a client, may be used or revealed by attorney to the extent necessary to defend accusation of wrongful conduct.
- Discharged attorney entitled to quantum meruit compensation.
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Opinion 92-08 |
Advertising and Solicitation | Referral Fees and Arrangements
Under facts presented, proposal of corporation to recommend its law firm to employees at reduced rates conforms to requirements of Illinois Rules of Professional Conduct.
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Opinion 91-13 |
Advertising and Solicitation | Contingent Fees
It is not professionally improper for attorney to represent corporate client under stated "contingent" fee arrangement, provided said arrangement violates no other laws; advertising such "contingent" fee arrangements, within limits imposed by Rules, is also not professionally improper.
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Opinion 91-06 |
Fees and Expenses
Under certain circumstances, invoicing client for secretary's overtime work is professionally proper.
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Opinion 90-26 |
Conflict of Interest | Fees and Expenses | Withdrawal from Representation
A lawyer has an obligation to determine the existence of possible conflicts of interest at the outset of the representation. Upon learning of a conflict of interest, a lawyer should immediately inform his or her client and if consent is not secured for continued representation, should immediately withdraw.
If a lawyer must withdraw from representation due to conflict of interest, he or she shall not be entitled to share in fees arising out of that matter. If, however, the representation is not based upon contingent fee, the lawyer shall not be entitled to any fee following the date upon which a conflict was determined or reasonably should have been determined to exist.
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Opinion 87-10 |
Fees and Expenses
It is professionally proper for an attorney to charge a client interest on either overdue bills or advanced expenses. The attorney should keep in mind suggested guidelines for maintaining a proper relationship with the client as well as possible ethical problems which may arise when charging interest.
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Opinion 86-16 |
Communication With Client | Law Firm Partnership and Employment Agreements | Law Firms
A departing associate and the firm may both seek the consent of the associate's clients to continued representation. Fees earned during the associate's employment by the firm should be divided according to the employment agreement, but that agreement may not require sharing of fees earned subsequent to withdrawal.
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Opinion 85-09 |
Fees and Expenses
An attorney may charge clients for computerized legal research expenses under a formula reflecting the attorney's actual cost.
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Opinion 84-09 |
Contingent Fees
Not improper for fee for criminal defense to be paid from award received in related civil action. No contingent fee for criminal defense or acquisition of interest in litigation present where criminal defense fee foregone if civil action unsuccessful.
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Opinion 799 |
Fees and Expenses
A commission received from a title insurance company for "back title evidence" must be disclosed to the client and may not be retained by the attorney.
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Opinion 725 |
Law Firm Partnership and Employment Agreements
It is professionally proper for an existing partnership to enter into an agreement for admission of a new partner under which the new partner is to pay a sum in excess of the fair market value of the physical assets of the existing partnership. It is further professionally proper for a newly admitted partner to share in fees received by the partnership after his admission for work performed prior to his admission.
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Opinion 723 |
Contingent Fees
If not limited by a statutory prohibition, attorney's fees can be in excess of the amount recovered in lawsuit where a contingent-fee agreement has been entered into between client and attorney.
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Opinion 722 |
Fees and Expenses
A law firm may use an employment agreement which calls for a noncancellable and nonrefundable retainer, as long as the fee is not excessive.
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Opinion 684 |
Nonlawyer Assistants | Unauthorized Practice of Law
It is not per se improper for a law firm to employ a layman to render collective bargaining services for firm clients. It would be professionally improper for a lawyer to render legal advice to the clients of his lay employer.
Rule 1.5(a)
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Opinion 13-01 |
Court Obligations | Fees and Expenses
It is not ethically permissible for a lawyer for a representative of a decedent’s estate to enter into a fee agreement, or to collect a fee, for an amount in excess of the amount of fees allowed by a probate court as reasonable.
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Opinion 12-20 |
Contingent Fees
Whether a lawyer may charge a contingent fee for seeking to identify and recover unclaimed property of a client is dependent on the extent of the lawyer’s knowledge of various factors at the time of undertaking the representation. However, such a fee, even if otherwise appropriate, must be reasonable.
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Opinion 12-02 |
Fees and Expenses
It is improper for an estate planning attorney to charge a fee calculated solely as a percentage of the value of the estate.
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Opinion 94-06 |
Fees and Expenses
It is professionally proper for a lawyer to charge a client interest on advanced expenses.
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Opinion 91-13 |
Advertising and Solicitation | Contingent Fees
It is not professionally improper for attorney to represent corporate client under stated "contingent" fee arrangement, provided said arrangement violates no other laws; advertising such "contingent" fee arrangements, within limits imposed by Rules, is also not professionally improper.
Rule 1.5(c)
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Opinion 21-04 |
Division of Fees | Referral Fees and Arrangements
An Illinois lawyer may enter into a fee-sharing agreement with an out-of-state lawyer who refers a personal injury case to the Illinois lawyer so long as the agreement complies with the applicable Illinois Rules of Professional Conduct and the corresponding rules of the foreign jurisdiction.
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Opinion 12-11 |
Discharge of Lawyer | Division of Fees | Fees and Expenses
A discharged attorney may not share in a division of fees with his former client’s successor attorney where the client does not agree in writing to the arrangement.
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Opinion 97-08 |
Contingent Fees | Fee Agreements | Fees and Expenses
A lawyer cannot take an additional amount in legal fees for reducing a lien payment which is above and beyond the percentage of the lawyer’s fees agreed to by the client in the contingency fee agreement with the lawyer.
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Opinion 93-11 |
Lawyer Retained and Compensated and Directed by Third Party | Scope of Representation | Unauthorized Practice of Law
An attorney may be retained to render services for a client by a third party. The party must be authorized to retain the attorney and the attorney's judgment must not be directed or regulated by the third party. The third party must be paid on either an hourly or contingent fee basis by the client and the attorney must not share fees with a non-attorney third party.
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Opinion 91-13 |
Advertising and Solicitation | Contingent Fees
It is not professionally improper for attorney to represent corporate client under stated "contingent" fee arrangement, provided said arrangement violates no other laws; advertising such "contingent" fee arrangements, within limits imposed by Rules, is also not professionally improper.
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Opinion 91-03 |
Division of Fees | Fees Paid by Third Party | Referral Fees and Arrangements
A lawyer may represent creditor/client when a collection agency retains the lawyer acting as an agent for the creditor/client but must satisfy himself that the collection agency is authorized by the creditor/client to do so; may not divide fees with the collection agency; and must ensure that the collection agency does not engage in improper solicitation for legal services or engage in the unauthorized practice of law in the marketing or performance of its services.
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Opinion 88-04 |
Deceased or Missing Clients
Where client has disappeared or cannot be located it is improper for a lawyer to settle his case, sign a settlement draft, or deduct fee without authority from the client; power of attorney to settle in retainer agreement must be narrowly drawn.
Rule 1.5(d)
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Opinion 02-03 |
Contingent Fees
An attorney may enter into a contingent fee agreement to represent a client in post-judgment proceedings to determine property rights in a dissolution of marriage case where one of the former spouses has died, provided the fee agreement is written and reasonable in amount.
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Opinion 91-13 |
Advertising and Solicitation | Contingent Fees
It is not professionally improper for attorney to represent corporate client under stated "contingent" fee arrangement, provided said arrangement violates no other laws; advertising such "contingent" fee arrangements, within limits imposed by Rules, is also not professionally improper.
Rule 1.5(e)
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Opinion 23-02 |
Division of Fees | Law Firm Partnership and Employment Agreements | Restrictions on a Lawyer’s Practice
Under Rule 1.5(e), a law firm may agree to share fees with a retired partner as part of a retirement agreement. However, Rules 1.5(e) and 5.6 bar the firm from requiring that a lawyer or the lawyer’s new firm continue to share fees with the retired partner after the lawyer has left the firm.
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Opinion 21-04 |
Division of Fees | Referral Fees and Arrangements
An Illinois lawyer may enter into a fee-sharing agreement with an out-of-state lawyer who refers a personal injury case to the Illinois lawyer so long as the agreement complies with the applicable Illinois Rules of Professional Conduct and the corresponding rules of the foreign jurisdiction.
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Opinion 12-11 |
Discharge of Lawyer | Division of Fees | Fees and Expenses
A discharged attorney may not share in a division of fees with his former client’s successor attorney where the client does not agree in writing to the arrangement.
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Opinion 03-06 |
Contingent Fees | Division of Fees | Prosecutors
Law firm can properly pay former partner share of contingent fee earned after partner left firm to become State’s Attorney as long as payment is part of separation agreement under Rule 1.5(j) and payment does not violate public policy concerns; former partner’s disqualification from private practice as State’s Attorney does not bar payment to former partner of share of fee earned by firm after partner withdrew when paid as part of separation agreement; former partner sharing fee under Rule 1.5(j) need not retain responsibility for matter, share fee proportionally to service performed, get client consent or make disclosures required for fee sharing, all as required by Rules 1.5(f) or (g) .
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Opinion 01-04 |
Lawyer Referral Services | Reporting Lawyer Misconduct
Lawyers acting as bar association officers have no duty to report a lawyer who fails to segregate a referral fee she owes to the bar association where the lawyer has filed a petition to adjudicate the lien raising serious ethical issues regarding the validity of the lien.
The lawyers acting as bar association officers have no duty to report the failure of the attorney to turn over the money after a final determination has been made that it belongs to the association and collection proceedings have commenced.
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Opinion 98-02 |
Division of Fees | Temporary Lawyers
- Payment to an independent or temporary lawyer on an hourly basis does not require disclosure to a client if there is close supervision. If work is delegated without close supervision then disclosure to a client is necessary.
- Rules of Professional Conduct allow division of fees between lawyers provided that disclosure is made to the client and client consents to the division of fees.
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Opinion 96-08 |
Advertising and Solicitation | Scope of Representation
- It is not misleading for a law firm to hold itself out as concentrating its practice in intellectual property law despite the fact that it does not do patent work. However, it may not hold itself out as "specializing" in any field of practice.
- A law firm may not have outside lawyers perform legal services without client disclosure and consent.
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Opinion 93-13 |
Law Firm Partnership and Employment Agreements | Restrictions on a Lawyer’s Practice
Employment agreement providing for execution of promissory note by attorney/employee payable only if he/she competes after terminating employment is professionally improper.
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Opinion 92-07 |
Temporary Lawyers
- A law firm may hire or retain individual attorneys to cover court call motions and depositions.
- An attorney hired by a law firm on an hourly basis to handle motions and depositions, should procure the client's informed consent (Rules 1.1(c) and 1.4) not necessarily in writing (1.5(f)).
- An attorney hired on an hourly basis is considered an associate attorney to a law firm.
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Opinion 90-18 |
Referral Fees and Arrangements
Where a referring lawyer and a receiving lawyer comply with the Rules governing referral fees, the Rules do not regulate the division of the fee between the referring lawyer and the receiving lawyer.
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Opinion 90-11 |
Referral Fees and Arrangements
Division of fees permitted when proportionate to services performed or responsibility assumed. Fees may not be divided with lawyer under ethical impediment to representing the client.
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Opinion 89-02 |
Prosecutors | Referral Fees and Arrangements
A State's Attorney may not accept a referral fee in a wrongful death case where a violation of a city or county ordinance is in question.
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Opinion 84-15 |
Law Firm Partnership and Employment Agreements
A partnership or attorney employment agreement may not require withdrawing attorneys to share fees earned from subsequent legal employment by former clients of the firm.
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Opinion 784 |
Referral Fees and Arrangements
It is not improper for a part-time public defender to refer cases involving misconduct of police officers to other counsel and receive a referral fee.
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Opinion 776 |
Of Counsel Designation
- A firm may not show an "Of Counsel relationship with lawyers who are receivers of legal business.
- A firm may accept a forwarding or referral fee.
Rule 1.5(f)
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Opinion 25-01 |
Multijurisdictional Practice | Unauthorized Practice of Law
Pursuant to Rule 5.5(d), a lawyer not licensed in Illinois may counsel an Illinois business on matters the lawyer is authorized by federal or other law or rule to provide in this jurisdiction. However, to the extent the non-Illinois lawyer seeks to advise an Illinois business on Illinois law, one of the exceptions to Rule 5.5(c) must apply.
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Opinion 21-04 |
Division of Fees | Referral Fees and Arrangements
An Illinois lawyer may enter into a fee-sharing agreement with an out-of-state lawyer who refers a personal injury case to the Illinois lawyer so long as the agreement complies with the applicable Illinois Rules of Professional Conduct and the corresponding rules of the foreign jurisdiction.
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Opinion 03-06 |
Contingent Fees | Division of Fees | Prosecutors
Law firm can properly pay former partner share of contingent fee earned after partner left firm to become State’s Attorney as long as payment is part of separation agreement under Rule 1.5(j) and payment does not violate public policy concerns; former partner’s disqualification from private practice as State’s Attorney does not bar payment to former partner of share of fee earned by firm after partner withdrew when paid as part of separation agreement; former partner sharing fee under Rule 1.5(j) need not retain responsibility for matter, share fee proportionally to service performed, get client consent or make disclosures required for fee sharing, all as required by Rules 1.5(f) or (g) .
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Opinion 01-04 |
Lawyer Referral Services | Reporting Lawyer Misconduct
Lawyers acting as bar association officers have no duty to report a lawyer who fails to segregate a referral fee she owes to the bar association where the lawyer has filed a petition to adjudicate the lien raising serious ethical issues regarding the validity of the lien.
The lawyers acting as bar association officers have no duty to report the failure of the attorney to turn over the money after a final determination has been made that it belongs to the association and collection proceedings have commenced.
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Opinion 98-02 |
Division of Fees | Temporary Lawyers
- Payment to an independent or temporary lawyer on an hourly basis does not require disclosure to a client if there is close supervision. If work is delegated without close supervision then disclosure to a client is necessary.
- Rules of Professional Conduct allow division of fees between lawyers provided that disclosure is made to the client and client consents to the division of fees.
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Opinion 90-18 |
Referral Fees and Arrangements
Where a referring lawyer and a receiving lawyer comply with the Rules governing referral fees, the Rules do not regulate the division of the fee between the referring lawyer and the receiving lawyer.
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Opinion 90-11 |
Referral Fees and Arrangements
Division of fees permitted when proportionate to services performed or responsibility assumed. Fees may not be divided with lawyer under ethical impediment to representing the client.
Rule 1.5(g)
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Opinion 01-04 |
Lawyer Referral Services | Reporting Lawyer Misconduct
Lawyers acting as bar association officers have no duty to report a lawyer who fails to segregate a referral fee she owes to the bar association where the lawyer has filed a petition to adjudicate the lien raising serious ethical issues regarding the validity of the lien.
The lawyers acting as bar association officers have no duty to report the failure of the attorney to turn over the money after a final determination has been made that it belongs to the association and collection proceedings have commenced.