Attorney referrals are not only ethical but legal, and they occur frequently. Attorneys try to get clients into the right hands so they get the remedy they deserve. However, lawyers need to follow guidelines and rules of conduct to keep transactions transparent and in the best interest of the client.
Attorneys who enter a referral agreement should follow these rules to avoid a breach of ethics.
Lawyers who share attorney fees must be from different firms.
Lawyers must put a fee-sharing agreement in writing.
Lawyers must inform the client about the referral and fee-sharing agreement.
The referring lawyer must get the clients consent for referral and fee-sharing in writing.
Lawyers must share attorney fees in proportion to the services provided by each attorney.
Lawyers should not accept compensation from another firm to secure a referral.