Read Illinois Rule of Professional Conduct 5.4 Professional Independence of a Lawyer
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Rule 5.4 Professional Independence of a Lawyer
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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 22-02 |
Advertising and Solicitation | Sharing Fees With Nonlawyers
A for-profit lawyer-client “match” service may comply with the Illinois Rules of Professional Conduct if (1) the matches are automated and completed without discretion on the part of the service as to what lawyer to match with a potential client; (2) the service does not endorse or vouch for the lawyer’s services, or hold itself out as such; (3) the service is not involved in any resulting attorney-client relationship that is formed after a “match”; and (4) any fees paid by the lawyer to the service are reasonable and unrelated to the services the lawyer provides to the client identified through the service. However, after a lawyer has initially decided that their participation in such a service complies with the Illinois Rules of Professional Conduct, the lawyer should evaluate, as frequently as is reasonable and including when asked to decide to renew their contract with the service or when provided information about changes to the service, whether their participation will continue to comply with the Rules. A lawyer must end their involvement with the service if and when they learn it violates the Illinois Rules of Professional Conduct.
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Opinion 19-01 |
Conflict of Interest - Litigation Matters | Fee Agreements | Fees and Expenses
Lawyers should carefully consider fee agreements under which they may be required to use part of their court-awarded fees in a class action case to compensate class representatives beyond the amount the court approves for that purpose. Such agreements create a substantial risk that the lawyer is operating under a conflict of interest that cannot be waived, because such a fee agreement places the interests of the lawyer’s client, the class representative, at odds with the interests of absent class members, to whom the lawyer owes fiduciary obligations. In addition, such a fee agreement could, in some circumstances, violate the prohibition on sharing fees with non-lawyers.
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Opinion 12-03 |
Advertising and Solicitation | Confidentiality | Referral Fees and Arrangements
A lawyer may participate in a networking group with other service professionals which refers clients to one another if: (a) the reciprocal referrals are not exclusive; (b) the lawyer requests prior consent from the client to give his or her name to someone in the networking group, although the better practice might be for the lawyer to give the name of the other “professional” to the client; (c) the client is informed of the existence of the referral agreement between the lawyer and the non-lawyer professional; and (d) the referral arrangement does not interfere with the lawyer’s professional judgment as to making the referral or providing substantive legal services.
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Opinion 06-02 |
Advertising and Solicitation | Division of Fees | Unauthorized Practice of Law
A lawyer is responsible for marketing firm’s conduct that would be in violation of the Rules of Professional Conduct if engaged in by a lawyer, if the lawyer orders or ratifies such conduct.
Marketing firm, retained by a law firm, may distribute advertisements promoting the firm to potential clients through the mail, by posting on electronic bulletin boards and by delivering promotions door-to-door, but it may not have personal contact with the recipients in its distribution of the advertisements.
Law firm aids in the unauthorized practice of law if it permits marketing firm to screen the responses to the advertising and to forward only “promising” responses to the law firm.
Law firm may not compensate marketing firm on any basis related to the fees received by the firm from clients obtained through the marketing firm.
Lawyer may make appearances before civic and similar organizations in an effort to obtain clients.
Law firm may not assign nonlawyer employee to determine whether potential client has a claim.
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Opinion 98-08 |
Insurance Representation
A lawyer designated by an insurance company to defend an insured party represents and has the same professional obligations that would exist had the lawyer been personally retained by the insured. Disagreement between the lawyer and the insured as to defense strategy may require the lawyer to withdraw.
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Opinion 97-06 |
Advertising and Solicitation | Division of Fees
It is not professionally improper for a lawyer to operate a prerecorded telephone advertisement where a fee is charged to the caller; sharing of such fees with a non-lawyer for preparation of the recording and written advertisement is permissible; sharing of legal fees with a non-lawyer in either a partnership or corporate setting is improper.
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Opinion 96-04 |
Advertising and Solicitation | Division of Fees | Unauthorized Practice of Law
The Rules of Professional Conduct are violated in numerous particulars by the creation of a network of independent licensee lawyers to be held out as practicing in the name of a corporation wholly owned by a non-lawyer.
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Opinion 94-11 |
Advertising and Solicitation | Division of Fees
It is professionally improper for a law firm to participate in a cellular telephone service offering legal advice where, based on the facts presented: the promotional materials are misleading; the promotional materials fail to include the name of a lawyer responsible for the contents; the firm may be participating in improper fee splitting and a partnership with a nonlawyer; there is no apparent avoidance of conflicts of interest; and client confidences may not be preserved.
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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 92-02 |
Insurance Representation
The attorney retained by an insurance company to defend its insured owes a duty to the insured not to disclose facts to the insurer which might prejudice the insured's rights in a potential coverage dispute with the insurer; the insured may thus require that counsel's reports be edited to delete such information. Disagreement between the insured and retained counsel regarding the contents of such reports may ultimately require withdrawal.
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Opinion 91-18 |
Fees Paid by Third Party
An attorney may represent property manager/agent members of real estate agents' association for client/owners provided that the agents are authorized to employ counsel, there is no fee splitting with the association or the member agents, and the association does not engage in improper solicitation or the unauthorized practice of law.
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Opinion 91-10 |
Unauthorized Practice of Law
An attorney aids in the unauthorized practice of law, and violates Rules of Professional Conduct regarding conflict of interest, fee splitting, and the provision of independent legal advice, when the attorney participates in a financial planning company's arrangement whereby the company gathers information necessary to prepare estate planning documents, prepares the documents, and send the documents to the client's selected attorney for review, legal advice, and execution.
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Opinion 90-32 |
Business Transactions With Clients | Dual Professions
Lawyer who is also an insurance and investment professional: may advertise insurance and investment business, but if advertising discloses status as a lawyer it must comply with rules governing lawyer advertising and solicitation; may accept legal employment from insurance and investment customers; and may sell insurance and investment products to legal clients with disclosure and consent; but may not agree with legal clients who are also insurance and investment customers that insurance or investment advice cannot be considered legal advice.
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Opinion 90-16 |
Dual Professions
Lawyer may operate business of providing economic analyses in conjunction with law practice from existing law office.
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Opinion 90-06 |
Law Firms
It is not professionally improper for a law firm and a financial planning business to share certain space and facilities, so long as client confidences are preserved and there is no improper solicitation or division of fees.
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Opinion 89-05 |
Nonlawyer Assistants
A profit-sharing plan in which non-attorney employees participate is proper provided shares are based upon overall firm profit and not tied to a particular case.
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Opinion 88-08 |
Nonlawyer Assistants | Unauthorized Practice of Law
It is improper for a law firm's client to provide space within its own business office for the regular use of a firm's paralegal to take phone calls and discuss matters in the law firm's name; it is improper for a law firm to allow a "paraprofessional" employed by one of the firm's clients to accept phone calls at the client's place of business in the law firm's name.
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Opinion 85-03 |
Dual Professions
Practice of law and accounting in same office now permissible due to repeal of Code section that required physical separation of dual practices.
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Opinion 768 |
Corporate and In-House Counsel | Fees and Expenses
It is not improper for a full-time, salaried lawyer to permit his employer to claim a portion of his salary as a legal fee in a mortgage foreclosure.
Rule 5.4(a)
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Opinion 15-04 |
Division of Fees | Referral Fees and Arrangements
A lawyer may share court-awarded legal fees with a nonprofit organization that referred the matter to the lawyer. However, in the absence of court-awarded fees, the lawyer may not share fees with the organization, and may not pay a referral fee to the organization except as may be permitted under Rule 7.2(b)(2).
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Opinion 14-03 |
Conflict of Interest | Corporate and In-House Counsel | Professional Independence of Lawyer | Sharing Fees With Nonlawyers | Unauthorized Practice of Law
Staff attorney employed by non-lawyer business entity is prohibited from providing legal services to the entity’s customers.
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Opinion 01-05 |
Arbitration and Mediation | Division of Fees | Referral Fees and Arrangements
It is professionally improper for a lawyer providing mediation services in a "mediation firm" comprised entirely of lawyers to participate in an arrangement with nonlawyers whereby the "mediation firm" obtains referrals in return for the payment of fees by the "mediation firm" to the nonlawyers.
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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 94-08 |
Advertising and Solicitation | Referral Fees and Arrangements | Unauthorized Practice of Law
It is professionally improper for a lawyer to participate in an arrangement with a non-lawyer whereby the latter engages in conduct which constitutes the unauthorized practice of law and where the lawyer obtains referrals in return for the payment of "marketing" or "consultation" fees and other things of value by the lawyer to the non-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 92-09 |
Fees and Expenses | Financial Assistance to Clients
Attorney may ethically assist clients in obtaining loans for payment of attorney fees, providing the attorney protects the client's confidences and meets his fiduciary obligation of complete disclosure.
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Opinion 91-18 |
Fees Paid by Third Party
An attorney may represent property manager/agent members of real estate agents' association for client/owners provided that the agents are authorized to employ counsel, there is no fee splitting with the association or the member agents, and the association does not engage in improper solicitation or the unauthorized practice of law.
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Opinion 90-20 |
Division of Fees | Unauthorized Practice of Law
It is professionally improper for an attorney, employed by an institution which markets Revocable Living Trusts to consumers as estate planning tools, to prepare or review such documents; or for the attorney to share fees with the institution.
Rule 5.4(b)
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Opinion 94-08 |
Advertising and Solicitation | Referral Fees and Arrangements | Unauthorized Practice of Law
It is professionally improper for a lawyer to participate in an arrangement with a non-lawyer whereby the latter engages in conduct which constitutes the unauthorized practice of law and where the lawyer obtains referrals in return for the payment of "marketing" or "consultation" fees and other things of value by the lawyer to the non-lawyer.
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Opinion 94-04 |
Advertising and Solicitation | Referral Fees and Arrangements
A lawyer or law firm may participate in a seminar relating to Advance Directive Services in which a health care organization (HCO) assists in preparation of materials so long as any payment by the lawyer or firm to the HCO is limited to the costs of preparation of the materials, those materials and their distribution comply with the rules on advertising, and all legal services are rendered solely by 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 90-20 |
Division of Fees | Unauthorized Practice of Law
It is professionally improper for an attorney, employed by an institution which markets Revocable Living Trusts to consumers as estate planning tools, to prepare or review such documents; or for the attorney to share fees with the institution.
Rule 5.4(c)
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Opinion 19-02 |
Financial Assistance to Clients
A lawyer who won a verdict for a client in litigation that is being appealed may allow the client to obtain financing and assist the client in obtaining financing from a third party during the pendency of such litigation. Although the Rules do not prohibit the lawyer’s assistance or cooperation, the lawyer’s assistance and cooperation are governed by several ethical limitations including the lawyer’s duty to render independent professional judgment and candid advice to the client free of third party interference, to maintain confidentiality of the client’s information and to obtain the client’s informed consent for the lawyer’s disclosure of any information to the finance company.
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Opinion 10-02 |
Referral Fees and Arrangements
A lawyer may not enter into a referral arrangement with a real estate company that would require the lawyer to use the real estate company’s affiliated title insurer for the lawyer’s clients as a condition of receiving referrals from the real estate company. Other Illinois and federal law governing the lawyer’s conduct may also apply to the proposed arrangement.
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Opinion 00-02 |
Confidentiality | Fees Paid by Third Party | Impaired Client
A lawyer may not divulge a psychiatric report utilized in a Social Security Disability hearing to the adult claimant’s parent unless the attorney is of the opinion that the adult claimant is disabled to the extent that a guardian should be appointed for the claimant.
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Opinion 96-06 |
Conflict of Interest - Litigation Matters | Fees Paid by Third Party | Impaired Client
Lawyer cannot continue to represent both parents and child when the parents have placed restrictions on the lawyer's representation of the child. The lawyer is required to exercise independent professional judgment on behalf of the child. The lawyer cannot be influenced by one other than the client merely because the other is paying the lawyer to represent the client.
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Opinion 94-01 |
Lawyer Retained and Compensated and Directed by Third Party | Scope of Representation | Unauthorized Practice of Law
A lawyer aids in the unauthorized practice of law, and may violate rules pertaining to confidentiality, conflicts, and the duty to communicate with and explain matters to a client, by limiting his role in a real estate transaction to the drafting of documents and delegating the gathering and dissemination of information, the resolution of problems arising from the documents drafted, and other problems which may arise at the closing, to the real estate broker.
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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 91-18 |
Fees Paid by Third Party
An attorney may represent property manager/agent members of real estate agents' association for client/owners provided that the agents are authorized to employ counsel, there is no fee splitting with the association or the member agents, and the association does not engage in improper solicitation or the unauthorized practice of law.
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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 90-20 |
Division of Fees | Unauthorized Practice of Law
It is professionally improper for an attorney, employed by an institution which markets Revocable Living Trusts to consumers as estate planning tools, to prepare or review such documents; or for the attorney to share fees with the institution.
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Opinion 89-17 |
Insurance Representation
Where an insurance company provides counsel to its insureds, the retained attorney's primary obligation is to the insured/client. The attorney for insured/client may not allow the exercise of his independent professional judgment to be influenced by one other than his client.
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Opinion 89-14 |
Business Transactions With Clients
- A lawyer who is also an insurance agent may perform legal services and provide insurance services for same client.
- A lawyer who is also an insurance agent may refer a client to another insurance agent and receive an insurance commission upon disclosure and consent.
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Opinion 89-01 |
Conflict of Interest - Transactional Matters
Multiple Representation of Business Broker and the Seller and Buyer of a Business in the Same Transaction is Professionally Improper.
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Opinion 88-16 |
Conflict of Interest
A lawyer director of Student Legal Services at a university whose office is funded by a portion of student activity fees paid by all students at the university may defend a student against criminal charges of battery against another student and may represent one student in a civil case against another student, provided that such lawyer has not consulted with or represented the other student involved.
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Opinion 87-02 |
Lawyer Retained and Compensated and Directed by Third Party | Scope of Representation | Unauthorized Practice of Law
Lawyer must be satisfied that an agent has authority to retain lawyer to perform legal services on behalf of another.
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Opinion 86-08 |
Law Firm Name and Letterhead | Unauthorized Practice of Law
It is not improper for a lawyer who is retained by a hospital to collect past-due accounts to distribute his blank letterhead to the client-hospital or to a business corporation, retained by the hospital to assist in managing patient accounts receivables, for the purpose of typing a collection letter which the lawyer writes, reviews for accuracy and personally signs.
Rule 5.4(d)
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Opinion 96-04 |
Advertising and Solicitation | Division of Fees | Unauthorized Practice of Law
The Rules of Professional Conduct are violated in numerous particulars by the creation of a network of independent licensee lawyers to be held out as practicing in the name of a corporation wholly owned by a non-lawyer.