Ethics Hotline & Opinions

ETHICS DOCKET NO. 1989-27

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MARYLAND STATE BAR ASSOCIATION, INC.

COMMITTEE ON ETHICS

ETHICS DOCKET NO. 1989-27

Association for Purposes of Referral


Your letter poses the following facts:

TVIR, the management company for the Legal Mutual Liability Society of Maryland has proposed for rate fixing purposes that the following be included in Legal Mutual's Lawyers' Professional Liability Manual:

If a group of lawyers form in an association:

(b) for purposes of referral while operating in separate locations, then each lawyer of the ""association"" covered under the policy will be charged the normal employed lawyer rate.

  You have asked whether such an association as contemplated by TVIR could be in violation of the Rule of Professional Conduct, specifically Section 1.5 (e) regulating fee splitting between lawyers. While each situation must be reviewed on its own merit, the Committee is of the opinion that the formation of an association as contemplated in the language to be included in the Professional Liability Manual does not violate per se the provisions of Section 1.5 (e) of the Rules of Professional Conduct or any other section of the Rules.

However, the members of such an association must comply with the provisions of Section 1.5 (e) . If there is a division of fees between lawyers in the association it must be in proportion to the services performed by each lawyer or by written agreement with the client; and each lawyer must assume joint responsibility for the representation. The members of the association also may share in a fee if the client is advised of and does not object to the participation of all the lawyers involved. In all instances, the total fee must be reasonable.

In addition, such an association must not violate Rule 5.4 regarding non-lawyer participation. A non-lawyer may not own any interest in the association or have a right to direct or control the professional judgment of any member of the association.

Finally, any advertising done by such an association must comply with Rule 7.2 and specifically include the name of at least one lawyer responsible for the content of the advertising.


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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.