Ethics Hotline & Opinions

ETHICS DOCKET NO. 1988-23

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MARYLAND STATE BAR ASSOCIATION, INC.

COMMITTEE ON ETHICS

ETHICS DOCKET NO. 1988-23

Fees: Division of Fee with Non-Lawyer (Group Legal Services Plan)


 Your letter enclosed a brochure of a prepaid legal services company. The brochure describes the services provided and the fees involved and it is suggested by the brochure that the sales associate who is responsible for procuring members receives some sort of remuneration for her services. You inquire whether the program violates the Rules of Professional Conduct since part of the fee is going to a sales associate who does not appear to be a lawyer.

With certain exceptions not here relevant, Rule 5.4(a) of the Rules of Professional Conduct proscribes a lawyer from sharing legal fees with a non-lawyer. However, nothing in the brochure or in your letter indicates that the sales associate is receiving a portion of the legal fees, although she may be receiving some amount from the premiums paid by the insured.

  Rule 7.2 provides for attorney advertising. Rule 7.2 (c) prohibits a lawyer from giving anything of value to a person for recommending the lawyer's services, but does allow a lawyer to pay the reasonable costs of advertising and the usual charges of a not-for-profit lawyer referral service or other legal service organization. The comment following that Rule is helpful. It indicates that the restriction of the Rule "" . . . does not prevent an organization or person other than the lawyer from advertising or recommending the lawyer's services."" For your information, we are enclosing a copy of A.B.A. Formal Opinion 87355, and, at least insofar as it concerns your inquiry, we concur in that opinion. The Committee feels that there is nothing in the brochure provided to us that indicates any conduct inconsistent with the Rules of Professional Conduct. 


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DISCLAIMER: Opinions of the Maryland State Bar Association (MSBA) Ethics Committee are an uncompensated service of the MSBA. This Committee’s opinions are not binding on the Maryland Court of Appeals, Maryland Attorney Grievance Commission, MSBA or this Committee. The reader is advised that subsequent judicial opinions, revisions to the rules of professional conduct, and future opinions of this Committee may render the Opinions stated herein outdated. As such, the Committee’s opinions are advisory only and neither the Committee nor the MSBA assumes any liability whatsoever with respect thereto. Accordingly, reliance upon the opinions of this Committee is solely at the risk of the user.