Advisory Opinion:
1211
Year Issued:
1988
RPC(s):
RPC 5.4(a)
Subject:
Division of fees with nonlawyer
The Committee considered your inquiry concerning the conduct of a lawyer who maintains an independent practice of law within a financial service center. You proposed several hypothetical fee arrangements between the lawyer and the service center. [1. The lawyer is paid a base amount per month and pays the service center a percentage of fees generated over the base amount; 2. The lawyer is paid a base amount, and the rent paid to the service center is based upon fees generated by the lawyer; 3. The lawyer is paid a base amount for providing monthly consultation fees to the service center's clients and the lawyer is not required to pay rent unless the attorney receives a certain amount of fees. The rent then fluctuates based on the fees received by the lawyer; 4. The same as 3, but the rent is not based on fees generated by the lawyer; 5. The lawyer pays the service center a set amount each month for rent on an increasing amount, the service center provides a base payment to the lawyer for providing services to the center's clients, and the lawyer keeps all fees received.]
The Committee was of the opinion that the first three proposed by you would be prohibited by RPC 5.4(a) because they would each constitute fee splitting since it involved a payment to the service center by the lawyer based upon the fees paid to the lawyer. The Committee was of the opinion that the last two proposals would be permissible so long as the amount paid the lawyer is not tied to the amount of fees obtained by the lawyer.
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