Reasonableness of referral fee

Facts

An attorney refers a personal injury case to a personal injury lawyer. The referring lawyer and the receiving lawyer agree to split the contingent fee equally. The principal service rendered by the referring lawyer is referring the case, however, the referring lawyer agrees to assume the same responsibility for the matter as if he were a partner in the receiving lawyer's firm. There is a written contingent fee agreement with the client and the client consents in writing to the division of the fee between the lawyers. The total fee to the client is reasonable and not increased by virtue of the referral fee.

Question

Where two lawyers comply with the rules of conduct for paying a referral fee, and the referring lawyer assumes the appropriate responsibility for the matter but otherwise renders no other service, is it a violation of the Rules for the referring lawyer to receive fifty percent of the fee? Under these circumstances is it a violation of the rules for the referring lawyer to receive one third of the fee?

Opinion

Assuming the lawyers have complied with Rules 1.5 (f) and (g)(1) and (2) which require, among other things, that the client consent in a writing which discloses the division of the fee, the basis on which it will be made, and the responsibility to be assumed by the referring lawyer, the Rules of Professional Conduct impose no restrictions on the way such reasonable fee may be divided between the lawyers.

References

• Rule 1.5(f), (g)(1) and (2)

Note

This Opinion was AFFIRMED by the Board of Governors in January 2010. Please see the 2010 Illinois Rule of Professional Conduct 1.5(e). This opinion was affirmed based on its general consistency with the 2010 Rules, although the specific standards referenced in it may be different from the 2010 Rules. Readers are encouraged to review and consider other applicable Rules and Comments, as well as any applicable case law or disciplinary decisions.