May a Louisiana lawyer give a client a thank-you gift after the client refers new business?

Plain-English summary

The opinion begins from the absence of a rule specifically prohibiting gifts from lawyers to clients. It then applies the referral and solicitation restrictions in Rules 7.1(c), 7.2, and 7.3(a). Those rules bar accepting referrals generated through prohibited solicitation, giving something of value for recommending the lawyer's services, and using others to conduct prohibited solicitation on the lawyer's behalf.

A client may voluntarily recommend a lawyer to people the client knows. The opinion distinguishes that activity from a client actively seeking legal business from strangers at the lawyer's request or on the lawyer's behalf. When a gift is connected to that activity or appears to compensate a referral, the cited rules are implicated.

The Committee therefore limits permissible gifts to modest or nominal tokens of appreciation that cannot reasonably be understood as payment, a bonus, or a referral incentive. It cites In re Sledge, where the Louisiana Supreme Court disciplined a lawyer for solicitation and payments to clients who referred prospective clients, and notes the record's reference to a Christmas "ham list" associated with referrals.

In practice

Under this 2007 opinion, the relevant distinction is between a modest expression of appreciation and something that functions or appears to function as compensation for generating new clients. The opinion grounds that distinction in the rules governing paid recommendations and solicitation through others.

Common questions

Q: Do the Louisiana rules prohibit every gift from a lawyer to a client?

A: No. The opinion states that the rules do not specifically prohibit client gifts.

Q: Can a gift thank a client for a referral?

A: The opinion permits a modest expression of thanks, but it states that the gift must not be portrayed or perceived as compensation for, or an incentive to make, referrals.

Q: May a current or former client recommend the lawyer to acquaintances?

A: Yes. The opinion distinguishes voluntary word-of-mouth recommendations to people the client knows from active solicitation of strangers undertaken at the lawyer's request or on the lawyer's behalf.

Q: Why does the opinion focus on the gift's value?

A: It explains that a reasonable or nominal value helps identify the gift as a token of appreciation rather than a payment, bonus, or other compensation for a referral.

Background and rules framework

The Committee reads Louisiana Rules 7.1(c), 7.2, and 7.3(a) together. Those provisions address referrals produced by prohibited communications, payments for recommendations, and in-person or telephone solicitation conducted directly or through another person.

Citations and references

Rules of Professional Conduct:

• Louisiana Rules 7.1(c), 7.2, and 7.3(a)

Statutes:

• La. R.S. 14:356, 14:356.1, and 14:356.3, paid solicitation of legal business by specified occupations

Cases:

• In re Lawrence D. Sledge, 2003-1148, 859 So. 2d 671 (La. 10/21/2003), solicitation and payments for client referrals

Other opinions cited:

• Arizona Ethics Opinion 2002-01, de minimis gifts after a referral

See also

• OSB Ethics Op. 2005-73: Referrals and Thank-You Gifts
• Utah Ethics Op. 13-02: Paying for Referrals
• OSB Ethics Op. 2005-175: Business Referral Clubs

Source

• Landing page: LSBA Ethics Advisory Service and Opinions
• Original PDF: Public Opinion 07-RPCC-015

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

Louisiana State Bar Association
Rules of Professional Conduct Committee

PUBLIC Opinion 07-RPCC-0151
December 20, 2007

Gifts to Clients

The Louisiana Rules of Professional Conduct do not specifically prohibit gifts by lawyers to clients. However, the Committee believes that any gift made by a lawyer to a client should be made only as a modest expression of thanks and appreciation but should not be portrayed or perceived as some form of compensation in exchange for, or as a result of, the referral of prospective new clients.

The Louisiana Rules of Professional Conduct do not specifically prohibit gifts by lawyers to clients. Nevertheless, there are still a few rules that must be considered in connection with any proposed gift to a client.

Rule 7.1(c)2 states “…A lawyer shall not accept a referral from any person, firm or entity whom the lawyer knows has engaged in any communication or solicitation relating to the referred matter that would violate these rules if the communication or solicitation were made by the

1
The comments and opinions of the Committee—public or private—are not binding on any person or tribunal, including—but not limited to—the Office of Disciplinary Counsel and the Louisiana Attorney Disciplinary Board. Public opinions are those which the Committee has published—specifically designated thereon as “PUBLIC”—and may be cited. Private opinions are those that have not been published by the Committee— specifically designated thereon as “NOT FOR PUBLICATION”—and are intended to be advice for the originally- inquiring lawyer only and are not intended to be made available for public use or for citation. Neither the LSBA, the members of the Committee or its Ethics Counsel assume any legal liability or responsibility for the advice and opinions expressed in this process.
2
Rule 7.1(c) of the Louisiana Rules of Professional Conduct.

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PUBLIC Opinion 07-RPCC-015
© 2007 by the Louisiana State Bar Association. All rights reserved. lawyer…” Rule 7.23 provides, in pertinent part, that “…A lawyer shall not give anything of value to a person for recommending the lawyer’s services…” Rule 7.3(a)4 states “…A lawyer shall not solicit professional employment in person, by person to person verbal telephone contact or through others acting at his request or on his behalf from a prospective client with whom the lawyer has no family or prior professional relationship when a significant motive for the lawyer’s doing so is the lawyer’s pecuniary gain…”

In light of these Rules, a lawyer should be careful, when selecting and giving gifts to clients, to ensure that no one misunderstands or mistakenly concludes that the gift represents some sort of payment or compensation in exchange for—or as some form of a quid pro quo incentive for— referral of prospective new clients.5 While many lawyers depend heavily upon word-of-mouth referrals of prospective new clients from existing and former clients and often wish to show their gratitude and appreciation for that new business, a lawyer should be cognizant of and careful with the limitations on solicitation of prospective new clients: 1) a lawyer cannot solicit new legal business in-person or over the telephone from someone with whom the lawyer has no family or prior professional relationship when a significant motive for doing so is the lawyer’s pecuniary gain6; and more importantly for this discussion, 2) the lawyer cannot solicit new legal

3
Rule 7.2 of the Louisiana Rules of Professional Conduct.
4
Rule 7.3(a) of the Louisiana Rules of Professional Conduct.
5
See In Re: Lawrence D. Sledge, 2003-1148, 859 So. 2d 671 (La. 10/21/2003), wherein the lawyer was disciplined for, among other things, improper solicitation of clients and paying money to current and former clients for referring prospective clients to him. Of particular interest, the Court, in footnote 23 of the opinion, mentions that: “…Although our finding of solicitation is limited to three specific instances, there are hints of a much wider practice of solicitation in the record. In particular, we note the record contains references to a ‘ham list’, a list for clients to whom respondent sent a ham at Christmas time. There is a suggestion that clients who referred new clients would be placed on this list…” 6
Rule 7.3(a) of the Louisiana Rules of Professional Conduct.

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PUBLIC Opinion 07-RPCC-015
© 2007 by the Louisiana State Bar Association. All rights reserved. business from such persons through the actions of others acting at the lawyer’s request or on the lawyer’s behalf.7

As a result, prospective recipients of proposed gifts from lawyers should not be encouraged or allowed to conclude easily but mistakenly that, in exchange for or as a result of the gift(s), the recipients are expected to try and solicit prospective new clients for the lawyer. Glowing recommendations from satisfied clients made to others that they know or with whom they do business are one thing (and generally quite acceptable); active pursuit and solicitation of new legal business for a lawyer from virtual strangers, even when done by clients acting at the lawyer’s request or on the lawyer’s behalf, is entirely different and would be a violation of the Rules.8 If those clients are improperly soliciting prospective new clients for a lawyer and also being somehow compensated for those referrals, there would be additional violations of the Rules.9 Therefore, whenever a lawyer might consider making a gift to a client, it would be best to keep the size/value of the gift at a very reasonable—perhaps even nominal (de minimis)10— level so that it appears clearly to everyone to be nothing more than a simple token/expression of the lawyer’s appreciation, gratitude, friendship, etc., as opposed to some form of payment,

7
Rule 7.3(a) of the Louisiana Rules of Professional Conduct.
8
It should also be noted that, aside from improper solicitation by clients, solicitation of legal business in exchange for any manner of payment is a criminal offense if done by: sheriffs, clerks of court, constables or their deputies or any police officer or detective, whether commissioned without pay or not (see La. R.S. 14:356); wrecker drivers, owners or any other person engaged in providing wrecker services (see La. R.S. 14:356.1); or ambulance drivers, owners or any other person involved in providing ambulance services (see La. R.S. 14:356.3).
9
See Rule 7.2 and Rule 7.1(c) of the Louisiana Rules of Professional Conduct.
10
See ABA/BNA Lawyers’ Manual on Professional Conduct, 18 LMPC 133, citing Arizona Ethics Opinion 2002-01 (February 27, 2002): “…Where the independent judgment of the attorney giving the gift is not affected or influenced, the intent of the rule is not to prohibit a de minimis gift as an expression of thanks and professional courtesy after the referral has been made…The panel emphasized that the gifts were to be given after the referral, that they were intended as an expression of thanks rather than compensation, and that they would not have significant value…”

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PUBLIC Opinion 07-RPCC-015
© 2007 by the Louisiana State Bar Association. All rights reserved. bonus, incentive or other compensation in exchange for or in consideration of the solicitation and/or referral of prospective new clients.

Conclusion
The Louisiana Rules of Professional Conduct do not specifically prohibit gifts by lawyers to clients. However, the Committee believes that any gift made by a lawyer to a client should be made only as a modest expression of thanks and appreciation but should not be portrayed or perceived as some form of compensation in exchange for, or as a result of, the referral of prospective new clients.

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PUBLIC Opinion 07-RPCC-015
© 2007 by the Louisiana State Bar Association. All rights reserved.