Advisory Opinion:
1399
Year Issued:
1991
RPC(s):
RPC 1.8(f)(2)
Subject:
Conflict of interest; referral fee paid to lawyer by nonlawyer
The Committee reviewed your inquiry concerning the proposal from a financial services firm regarding a referral fee to lawyers of 1% of the gross amount for loans to clients referred to that firm. The Committee was of the opinion that such a kickback for referrals violates the provisions of RPC 1.8(f)(2) because it interferes with the independent judgment of the lawyer. They also noted that such an arrangement creates a conflict between the lawyer and client. After discussion, the Committee did not believe that this was a matter that required publication at this time because it does not appear to be a widespread problem. Thank you for calling this to the Committee's attention.
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