Can a lawyer accept referrals from, work for, or serve as an officer of a for-profit lawyer referral service?

Plain-English summary

A lawyer was approached by a non-lawyer who proposed a marketing company that would solicit personal-injury cases using methods that would violate the Rules of Professional Conduct if a lawyer used them, refer the resulting cases to lawyers, and charge the lawyers a fee per referral. The opinion concluded that the lawyer could not accept those referrals. It relied on prior Opinion No. 94-12, which held that a lawyer may not participate in a lawyer-referral program operated by a for-profit organization, and on Illinois Rule 7.2(b), which bars a lawyer from giving anything of value to a person for recommending the lawyer's services except for the reasonable cost of permitted advertising and the usual charges of a not-for-profit referral service.

The opinion also concluded that serving on the company's board of directors or performing any legal services to enable the business to operate would be prohibited. It reasoned that Illinois Rule 8.4(a) bars a lawyer from assisting another's conduct when the lawyer knows it will violate the rules. Because the business required the active participation of lawyers who would themselves be violating the rules for it to operate, a lawyer performing any service for the company would be assisting other lawyers in violating the rules.

Currency note

This opinion was issued in 1998, before Illinois adopted the 2010 Illinois Rules of Professional Conduct. The ISBA Board of Governors affirmed the opinion in January 2010 as generally consistent with the 2010 Rules (referring to Rule 7.2(b) and its Comments [6] and [7] and Rule 8.4), while noting the specific standards referenced may differ from the 2010 Rules. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule or requirement mentioned here.

Common questions

Q: Can a lawyer accept referrals from a for-profit referral service?

A: No. The opinion concluded that participation in a for-profit lawyer-referral program is improper, following Opinion No. 94-12, and Rule 7.2(b) allows paying only for permitted advertising or the usual charges of a not-for-profit service.

Q: Does it matter that the service used solicitation methods a lawyer could not use?

A: Yes, it made the conclusion clearer. The opinion noted that the service was both for-profit and operating beyond the Rules of Professional Conduct in securing referrals, so the conduct was improper on both grounds.

Q: Could the lawyer serve as a director of or do legal work for the company instead?

A: No. The opinion held that serving on the board or performing any legal services to enable the business would violate Rule 8.4(a), because the lawyer would be assisting conduct the lawyer knew would violate the rules.

Background and rules framework

The opinion interpreted Illinois Rule 7.2(b) (corresponding to Model Rule 7.2(b)), which restricts giving anything of value for recommending a lawyer's services, and Illinois Rule 8.4(a) (corresponding to Model Rule 8.4(a)), which bars assisting another in violating the rules. It applied prior ISBA Opinion No. 94-12 on for-profit referral programs.

Citations and references

Rules of Professional Conduct:

• Model Rule 7.2(b) (payment for recommending services) / Illinois Rule 7.2(b)
• Model Rule 8.4(a) (assisting a violation) / Illinois Rule 8.4(a)

Other opinions cited:

• ISBA Advisory Opinion No. 94-12: participation in a for-profit lawyer-referral program is improper

See also

• ISBA Ethics Op. 97-04: Referral Fees From Nonlawyer Professionals
• ISBA Ethics Op. 97-06: Prerecorded Telephone Legal Information Hotline

Source

• Landing page: https://www.isba.org/ethics/opinions/9705