Could a Vermont firm share a fee or give a thank-you gift to a lawyer who only referred the client?
Apply this to your situation
This page answers the general question as of 1998. Ask about yours and see what the current Vermont Rules of Professional Conduct say for your facts, with citations.
Plain-English summary
A lawyer introduced a personal injury client to a firm but did no work on the matter. After the firm obtained a settlement, it asked whether it could share part of its contingency fee or give the referring lawyer a goodwill gift.
The committee said former DR 2-107 required client consent after disclosure, proportionate services and responsibility, and a reasonable total fee. Those conditions were absent: the referring lawyer performed no legal work and the client had not consented to any division. The committee also applied DR 2-103(C) to reject an after-the-fact gift for the referral, regardless of its size.
Currency note
This opinion was issued in 1998 under Vermont's former Code of Professional Responsibility. The Vermont Supreme Court's rules history states that the Rules of Professional Conduct applied to lawyer conduct after September 1, 1999. Later rule amendments or opinions may have changed the analysis. Treat this opinion as historical context and verify current rules before relying on it.
Common questions
Q: Could the firm divide the fee with the referring lawyer?
A: No. The referring lawyer provided no services, and the client had neither been told of nor consented to a fee division.
Q: Could the firm send a small thank-you gift instead?
A: No. The committee read DR 2-103(C) to prohibit giving anything of value for recommending the firm's services.
Background and rules framework
The opinion applied former DR 2-106 on reasonable fees, DR 2-107 on fee divisions, and DR 2-103(C) on payments for recommendations. It also cited Model Rule 7.2(c) as carrying the same prohibition on payment for channeling work.
Citations and references
Rules of Professional Conduct:
- Vermont Code of Professional Responsibility DR 2-106, DR 2-107, DR 2-103(C)
- Model Rule 7.2(c)
See also
- Vermont Ethics Op. 95-02: For-profit referral listing
- Vermont Ethics Op. 00-01: Nonprofit referral service
Source
- Landing page: Vermont Bar Association fee opinions
- Original PDF: Opinion 98-11
- Vermont Supreme Court rules history, “These rules apply to lawyer conduct after September 1, 1999.”
What do the rules say today, for your facts?
This opinion is from 1998. Ezel checks the current Vermont Rules of Professional Conduct against your situation and cites the rules it relies on.
Opens in Ezel Pro.
- Checks the law as it stands today, not only this page
- Cites every source it relies on, so you can verify it
- Chat, drafting and research in one workspace