Ezel / Ethics Opinions / MOLEC

May a Missouri lawyer pay an out-of-state lawyer a percentage of a contingent fee solely for referring the case?

Short answer No referral fee may be paid. A fee may be divided only under Rule 4-1.5(e): proportional services or joint responsibility, written-confirmed client agreement to the association, and a reasonable total fee.
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MOLEC
Issued
2018

Apply this to your situation

This page answers the general question as of 2018. 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 2018
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

Rule 4-7.2(c) prohibits giving value for recommending legal services, so a percentage cannot be paid merely as a referral fee.

Rule 4-1.5(e) separately permits division when based on proportional services or joint responsibility, the client agrees to the association in a writing-confirmed agreement, and the combined fee is reasonable.

In practice

Under this opinion, the label does not control. A permitted division requires substantive services or joint responsibility and every client-consent and fee condition.

Common questions

Q: May a pure referral percentage be paid? A: No.

Q: What substitutes for proportional services? A: Joint responsibility.

Q: Must the client agree in writing? A: Yes, confirmed in writing.

Background and rules framework

Rule 4-7.2(c) bars paid recommendations; Rule 4-1.5(e) defines permitted lawyer fee divisions.

Citations and references

  • Missouri Rules 4-1.5(e) and 4-7.2(c)

See also

Source

Original opinion text

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

Question: May Attorney A share a percentage portion of an earned contingent fee with Attorney B, who practices in another firm and is not licensed in Missouri, and who referred the case to Attorney A?

Answer: Attorney A may not pay a referral fee to Attorney B. Rule 4–7.2(c) prohibits Attorney A from giving anything of value to Attorney B for recommending the lawyer’s services. Attorney A may divide the fee with Attorney B only if the division of fee complies with Rule 4–1.5(e). The rule allows the sharing of a fee if the division is in proportion to the services performed by each lawyer or if each lawyer assumes joint responsibility for the representation; if the client agrees to the association, confirmed in writing; and if the total fee is reasonable.

What do the rules say today, for your facts?

This opinion is from 2018. Ezel checks the current Missouri Rules of Professional Conduct against your situation and cites the rules it relies on.

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