Advisory Opinion:
1404
Year Issued:
1991
RPC(s):
RPC 1.5; 5.4
Subject:
Division of fees with nonlawyer; contingent fee arrangement with percentage cap with consulting firm
The Committee reviewed your inquiry concerning an arrangement with a consulting firm whereby the consulting firm would be paid by your law firm out of the fees earned by the law firm. Neither your firm nor the consulting firm would be paid unless a professional athletic contract were executed. In addition, you have put a "cap" [of 30% of fees received by law firm] on the total compensation to be paid to the firm.
The Committee was of the opinion that as presently structured, this arrangement would constitute fee splitting with a non-lawyer in violation of RPC 5.4. The Committee was of the opinion that there would be nothing improper with restructuring the arrangement so that there was a separate fee contract between the client and the consultant. In addition, the Committee was concerned that the "cap" might not ensure a reasonable fee, and directs your attention to the consideration in RPC 1.5 regarding a reasonable fee.
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