For profit referral service
Digest
A lawyer may not participate or assist in any way in a business operating as a for-profit lawyer referral service.
Facts
A lawyer is approached by a non-lawyer who proposes setting up a marketing company which would solicit personal injury cases by methods which would violate the Rules of Professional Conduct if employed by a lawyer. The lawyers would receive referrals from the non-lawyer's company. The lawyers would pay a fee to the company for each referral.
Questions
- May a lawyer accept referrals from such a company?
- May the lawyer perform legal services for such a company?
- May the lawyer serve as an officer of such a company?
Opinion
The first question has previously been answered in the negative even in the situation where the referral service did not act in a manner which would be prohibited if done by a lawyer. Opinion No. 94-12 held that it would be improper for a lawyer to participate in a lawyer referral program operated by a for-profit organization.
Illinois Rules of Professional Conduct, Rule 7.2(b) provides that: "A lawyer may not give anything of value to a person for recommending or having recommended the lawyer's services..." except for the reasonable cost of advertising or written communications as permitted by Rule 7.2 and the usual charges for a not-for-profit referral service.
Not only is the service referred to in this inquiry a for-profit service, but the terms of the inquiry make it clear that this service will be going beyond the Rules of Professional Conduct in securing referrals.
Serving on the Board of Directors of such a company or performing any legal services to enable such a business to operate would also be prohibited. Illinois Rule 8.4 not only mandates that lawyers may not violate the Rules of Professional Conduct, but 8.4(a) prohibits assisting another's conduct when the lawyer knows that conduct will violate the rules. Although the business is composed of non-lawyers, one cannot ignore the fact that it requires the active participation of lawyers who themselves would be in violation of the Rules of Professional Conduct for the business to operate. Thus, the lawyer would be assisting other lawyers in violating the Rules of Professional Conduct by performing any service in any capacity for the company.
All of the conduct in question would be violative of the Rules of Professional Conduct.
References
- Illinois Rules of Professional Conduct, Rules 7.2(b) and 8.4(a)
- ISBA Advisory Opinion No. 94-12