Ethics Hotline & Opinions

ETHICS DOCKET NO. 1988-58

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MARYLAND STATE BAR ASSOCIATION, INC.

COMMITTEE ON ETHICS

ETHICS DOCKET NO. 1988-58

Attorneys: Propriety of Attorney Not Licensed In Maryland Referring Clients To Maryland Attorneys And Accepting Referral Fee For Research Performed On The Case

You have advised that you are admitted to practice in the State of Hawaii and in the District of Columbia but not in the State of Maryland, although you live in Baltimore. You would like to refer cases to Baltimore attorneys and ""would possibly take a referral fee based upon work done in conjunction with these case.""

  First of all, we have difficulty with your use of the word ""referral fee"" since the Rules of Professional Conduct prohibit a referral fee or forwarding fee as such, i.e. simply for referring a client to a second attorney while retaining no responsibility nor performing any services in connection with the case. Rule 7.2 provides that ""A lawyer shall not give anything of value to a person for recommending the lawyer's services...""

  Rule 1.5(a) of the Rules of Professional Conduct does permit the division of a fee between lawyers who are not in the same firm if the client is advised and does not object, the total fee is reasonable and ""the division is in proportion to the services performed by each lawyer or, by written agreement with the client, each lawyer assumes joint responsibility for the representation."" In this case, since you are not authorized to practice law in the State of Maryland you cannot assume joint responsibility for the representation. However, the Committee sees no reason why you could not share in the division of the fee based upon services performed. As noted in the comment under Rule 5.5, which prohibits the unauthorized practice of law, that Rule would not proscribe a Maryland lawyer from employing your services, so long as the Maryland lawyer supervises the delegated work and retains responsibility for it.


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