Ezel / Ethics Opinions / MOLEC

May a lawyer pay a nonlawyer landlord rent calculated as a percentage of the lawyer’s gross receipts?

Short answer No. The opinion treats rent based on a percentage of gross receipts as improper fee sharing with a nonlawyer under Rule 4-5.4.
Bar
MOLEC
Issued
2010

Apply this to your situation

This page answers the general question as of 2010. Ask about yours and see what the current Missouri Rules of Professional Conduct say for your facts, with citations.

Currency note: this opinion is from 2010
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.
How much weight this carries: Under Missouri Supreme Court Rule 5.30, formal opinions are binding; informal opinions are advisory. Source.
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 opening a new office proposed rent paid to a nonlawyer landlord as a percentage of the lawyer’s gross receipts.

The opinion answers no. It concludes that percentage-of-receipts rent would be improper sharing of legal fees with a nonlawyer under Rule 4-5.4.

In practice

The opinion rejects the proposed gross-receipts formula for rent paid to the nonlawyer landlord.

Common questions

Q: May the rent track the lawyer’s gross receipts?

A: No. The opinion treats that arrangement as improper fee sharing with a nonlawyer.

Q: Which rule does the opinion apply?

A: It applies Missouri Rule 4-5.4.

Q: Does the holding turn on the landlord being a nonlawyer?

A: The stated facts specify a nonlawyer landlord, and the opinion gives improper fee sharing with a nonlawyer as its reason.

Background and rules framework

Rule 4-5.4 is the sole rule identified in the opinion. The proposed rent formula is evaluated as fee sharing with a nonlawyer.

Citations and references

Missouri Rules of Professional Conduct:

  • Rule 4-5.4

See also

Source

Original opinion text

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

QUESTION: Attorney wishes to open up a new office. Attorney would like to use a percentage of Attorney’s gross receipts to calculate rent to be paid to a nonlawyer landlord. Is this permissible?

ANSWER: Attorney may not pay rent based on a percentage of gross receipts because it would be considered improper fee sharing with a nonlawyer under Rule 4–5.4.

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