“The truth about attorney referral fees”

I just sent a referring attorney a check for $50,000.00 as a referral fee. He was thrilled.

$50,000.00 is quite a windfall for a lawyer for “just making a phone call.” But bar rules contemplate that the referring lawyer not just make a call, but participate and assume “secondary responsibility” for the case and client. For assuming this “secondary responsibility,” the referring attorney may receive “a maximum of 25% of the total fee.” By the way, the referring attorney not only participates in the fee, but also can be liable if the case is mis-managed and results in a mal-practice claim.

Referral fees in excess of 25% are strongly frowned upon. If the referral fee exceeds 25% the lawyers must obtain permission from the court.

Lawyers are not, repeat not, allowed to share fees with non attorneys, and if discovered to have done so, the lawyer would be subject to discipline including in one recent case suspension from practice.

We are fortunate to have built a network of attorneys over the years who often turn to us to handle their clients’ personal injury cases, through steady, aggressive and ethical representation. If you’re an attorney interested in co-counseling your client’s personal injury case with an attorney who gives each individual case and client personal attention, we may be a good fit for you.