Ezel / Ethics Opinions / MBAR
MBAR March 6, 2008

Can a lawyer join a for-profit business networking group that requires members to exchange client referrals?

Short answer: No. The opinion concludes that a lawyer's commitment to give business referrals in exchange for client referrals is 'giving something of value' to solicit employment, barred by Rule 7.3(f). A for-profit networking club is neither a bar-approved referral service nor a qualified legal assistance organization.

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This page answers the general question as of 2008. Ezel answers yours: whether it's allowed on your facts, under the current Massachusetts Rules of Professional Conduct, with citations.

Currency note: this opinion is from 2008
Subsequent statutory amendments, court decisions, or later opinions or rule amendments may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.
Disclaimer: Advisory only. Not binding precedent.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official ethics opinion. The original opinion (linked on this page) is the authoritative source for any reliance.

Plain-English summary

A lawyer wanted to join a national for-profit business networking organization with local chapters, where members meet regularly and exchange business referrals. The club admits only one person per profession per chapter and requires each member to bring a minimum number of referrals or prospective members to each meeting. The lawyer asked whether joining would violate the Rules of Professional Conduct.

The opinion applies Rule 7.3(f), which bars a lawyer from giving anything of value to a person or organization to solicit professional employment, with exceptions for a bar-operated, -sponsored, or -approved lawyer referral service and for a "qualified legal assistance organization" as defined in Rule 9.1(i). The committee concludes the networking club is neither: it is not a bar-approved referral service, and it is not a qualified legal assistance organization because it is a for-profit entity designed to procure financial benefit for its members rather than a legal aid, public defender, or military office that furnishes legal services without profit.

The opinion further concludes the lawyer could not even accept referrals from other members, because his required commitment to provide referrals in return is itself the "giving of value" prohibited by Rule 7.3(f). The committee notes the precise benefits of cross-referrals may not be immediately apparent but are valuable enough to justify the club's existence. Citing its earlier Opinion 87-3, the committee holds that the rules bar the lawyer from participating in this or any similar organization that mandates cross-referrals of potential clients.

In practice

This opinion was issued in 2008 and interprets the Massachusetts solicitation rules as they stood at the time; the bar's advertising and solicitation rules have since been revised, so verify the current rule numbering and text before relying on the specific provision cited.

The opinion's operative holding is that a mandatory exchange of client referrals is paid solicitation: per the opinion, the lawyer's promise to refer business in return for referrals is "giving something of value" under Rule 7.3(f), and a for-profit networking club does not fit the rule's exceptions for bar-approved referral services or qualified legal assistance organizations.

Common questions

Q: Can I join a business networking group that trades referrals if I never pay cash?

A: The opinion concludes you may not, where the group requires mutual client referrals. It holds that your commitment to refer business in return for referrals is itself "giving something of value" under Rule 7.3(f), even without a cash payment.

Q: Isn't a referral group just like a lawyer referral service?

A: Per the opinion, no. Rule 7.3(f)'s exception covers a referral service operated, sponsored, or approved by a bar association, and a "qualified legal assistance organization" under Rule 9.1(i); a for-profit networking club is neither.

Q: Does it matter that the value of the referrals is hard to quantify?

A: The opinion concludes it does not. It reasons that the cross-referral benefits, even if not immediately apparent, are valuable enough to justify members joining, and so count as value given under Rule 7.3(f).

Background and rules framework

The opinion interprets Massachusetts Rule of Professional Conduct 7.3(f) (no giving anything of value to solicit professional employment, with exceptions for bar-approved referral services and qualified legal assistance organizations) together with the definition of "qualified legal assistance organization" in Rule 9.1(i). Rule 7.3 corresponds to ABA Model Rule 7.3 (solicitation).

Citations and references

Rules of Professional Conduct:

  • MR 7.3 / Mass. R. Prof. C. 7.3(f) (no paid solicitation; referral-service and qualified-organization exceptions)
  • Mass. R. Prof. C. 9.1(i) (definition of "qualified legal assistance organization")

Other opinions cited:

  • MBA Opinion 87-3 (a firm may not let a financial-services agency solicit business for it; paid-solicitation bar under the predecessor DR 2-103(E))

See also

Source

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