ABA Family Legal Guide

When and How to Use a Lawyer

1.4 Legal Fees and Expenses

1.4a Types of Fees

What are referral fees?

If you go to Lawyer A, he or she may be unable to help, but might refer you instead to Lawyer B, at another law firm, who has more experience in handling your kind of case. In return for the referral, Lawyer A will sometimes be paid part of the total fee you pay to Lawyer B. The law may prohibit this type of fee, especially if it increases the final amount to be paid by a client. The ethics rules for lawyers in most states specify that lawyers in different firms may not divide a client's fee unless

1. the client knows about and consents to the arrangement;

2. they divide the fee in a way that reflects how much work each lawyer did, or both lawyers are fully responsible for the case; and

3. the total bill is reasonable.

If one lawyer refers you to another, you have a right to know if there will be a referral fee. If there is, then ask about the specifics of the agreement between the lawyers.