Advisory Opinion: 1297

Year Issued: 1989

RPC(s): RPC 7.2(c)

Subject: Referral fees; corporation receiving monthly fees from members referring to lawyer in exchange for discount

The Committee understood your inquiry to concern a proposal whereby a corporation formed by an insurance agent would provide referrals for services to certain contract engineers in return for the engineers paying a monthly fee to the corporation. Among others, the corporation would refer its engineer members to your law firm on the condition that you would provide the members a free 1/2 hour initial interview and a discount of 10% from your regular hourly rates. The Committee, with one dissent, was of the opinion that such a proposal would violate RPC 7.2(c) because the fact that the lawyer was part of the package being sold by the corporation constituted something of value given to the corporation enabling it to charge fees from its members.

Advisory Opinions are provided for the education of the Bar and reflect the opinion of the Committee on Professional Ethics (CPE) or its predecessors. Advisory Opinions are provided pursuant to the authorization granted by the Board of Governors, but are not individually approved by the Board and do not reflect the official position of the Bar association. Laws other than the Washington State Rules of Professional Conduct may apply to the inquiry. The Committee's answer does not include or opine about any other applicable law other than the meaning of the Rules of Professional Conduct.