A business networking 'Leads Group' meets biweekly for breakfast so members can pass business opportunities to each other. May I, as a lawyer, join it without violating Rule 7.2(c) on paying for referrals?

Plain-English summary

The inquiring attorney was invited to join a "Leads Group," a group of individuals in the business community that meets every other week for breakfast to discuss business opportunities each member may have for other members, with the members evenly dividing the breakfast bill. The attorney asked whether it was appropriate to join such a group.

The Panel concluded the attorney may join, subject to restrictions. It set out Rule 7.2(c), which bars a lawyer from giving anything of value to a person for recommending the lawyer's services, except that a lawyer may pay the reasonable cost of permitted advertising and the usual charges of a not-for-profit lawyer referral service or other legal service organization. The Panel explained that under Rule 7.2(c) a lawyer may pay those costs but may not otherwise pay a fee for referral of business or give anything of value in exchange for referrals, citing its Opinion 95-3 (a fee paid for a bar association's lawyer referral service does not violate Rule 7.2(c)) and Opinion 95-5 (a fee paid for a non-profit charitable organization's referral service not affiliated with the bar association would violate Rule 7.2(c)).

Recognizing that the range of business opportunities in such a group may extend beyond client-customer referrals, the Panel concluded the attorney may participate as long as referring prospective clients to the attorney is not the sole purpose of the group, the attorney does not accept referrals from members in exchange for referring clients to other members, the attorney does not solicit members of the group, and there are no improper fee-sharing or referral payments involved.

Currency note

This opinion was issued in 1996 (Opinion 96-25, issued September 12, 1996), after the Rhode Island Supreme Court adopted the Model Rules of Professional Conduct effective November 15, 1988, and it applies Rule 7.2(c) as it stood at the time. The Rhode Island Supreme Court later revised the Rules of Professional Conduct in 2007 as part of the nationwide Ethics 2000 process, and the referral and advertising rules have been amended since. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule mentioned here.

Common questions

Q: Can a lawyer join a business networking group that swaps referrals?

A: The Panel said yes, within limits. Participation is permitted so long as referring clients is not the group's sole purpose and the lawyer does not trade referrals or pay for them.

Q: What exactly is off-limits under Rule 7.2(c)?

A: The lawyer may not accept referrals from members in exchange for referring clients to them, may not solicit the members, and may not take part in improper fee-sharing or referral payments.

Q: Does splitting the breakfast bill count as paying for referrals?

A: The Panel did not treat evenly dividing the breakfast cost as a prohibited payment; its concern was reciprocal referral trading, solicitation, and fee-sharing, not the shared meal expense.

Background and rules framework

The opinion interprets Rhode Island Rule of Professional Conduct 7.2(c) (paying others for recommending the lawyer's services), the analog of Model Rule 7.2(c). The Panel permitted general business networking while policing the rule's core prohibition on giving value for referrals, drawing on its prior Opinions 95-3 and 95-5.

Citations and references

Rules of Professional Conduct:

• MR 7.2 / RI RPC 7.2(c) (paying others for recommending the lawyer's services)

Other opinions cited:

• RI EAP Opinion 95-3 (issued March 23, 1995): fee for a bar association's lawyer referral service does not violate Rule 7.2(c)
• RI EAP Opinion 95-5 (issued July 13, 1995): fee for a non-bar-affiliated charity's referral service would violate Rule 7.2(c)

See also

• RI EAP Opinion 2019-03: paying a for-profit internet lead service violates Rule 7.2(c)
• RI EAP Opinion 91-38: accepting client referrals from a nonprofit does not itself violate the rules

Source

• Landing page: https://www.courts.ri.gov/attorney-resources/Pages/Ethics-Advisory-Panel-default.aspx
• Original PDF: https://www.courts.ri.gov/Opinions/EAP%2096-25.pdf

Original opinion text

Best-effort transcription from a scanned PDF. Minor errors may remain; the linked PDF is authoritative.

ETHICS ADVISORY PANEL
OPINION # 96-25, - REQUEST # 685
Issued - September 12, 1996

FACTS:

The inquiring attorney was invited to join a "Leads Group" which is a group of individuals in the business community that meets every other week for breakfast to discuss business opportunities each member may have for other members. The individuals evenly divide the total bill incurred for breakfast.

ISSUE PRESENTED:

The inquiring attorney asks whether it is appropriate to join such a group.

OPINION:

The inquiring attorney may join such a group subject to the restrictions set forth below.

REASONING:

Rule 7.2(c) of the Rules of Professional Conduct states:

(c) A lawyer shall not give anything of value to a person for recommending the lawyer's services, except that a lawyer may pay the reasonable cost of advertising or written communication permitted by this rule and may pay the usual charges of a not-for-profit lawyer referral service or other legal service organization.

Under Rule 7.2(c), a lawyer may pay the reasonable cost of advertising and the usual charge of a not-for-profit lawyer referral service or other legal service organization, but may not otherwise pay a fee for referral of business, or give another anything of value in exchange for referrals. See, RI Ethics Advisory Panel Opinion # 95-3 (Issued March 23, 1995) (fee paid for bar association's lawyer referral service not violative of Rule 7.2(c)); and RI Ethics Advisory Panel Opinion # 95-5 (Issued July 13, 1995) (fee paid for non-profit charitable organization's lawyer referral service which is not affiliated with bar association would be violative of Rule 7.2(c).).

The Panel recognizes that the range of business opportunities available through such a group may extend beyond client-customer referrals. Therefore the inquiring attorney may participate in such a group as long as referring prospective clients to the attorney is not the sole purpose of the group, the attorney does not accept referrals from members in exchange for the attorney's referring his/her clients to other members, the attorney does not solicit members of the group, and there are no improper fee-sharing or referral payments involved in the arrangement.