Ezel / Ethics Opinions / WISBAR
WISBAR 1987

May a Wisconsin lawyer accept referrals from a for-profit lawyer referral service to which the lawyer pays a fee or gives something of value?

Short answer: The opinion concluded that under the former Code a lawyer could not accept referrals from a profit-making referral service to which the lawyer paid any fee or gave anything of value for the referral. Under the new Rules, however, if the lawyer paid no consideration for the potential or actual receipt of referral clients, participation appears permissible under SCR 20:7.2(b). The committee noted constitutional questions may be involved and that the ultimate answer lies with the courts.

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This page answers the general question as of 1987. Ezel answers yours: whether it's allowed on your facts, under the current rules of professional conduct in your state, with citations.

Currency note: this opinion is from 1987
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 Not binding precedent.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 as a PDF) is the authoritative source for any reliance.
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Plain-English summary

Opinion E-87-7 asked under what circumstances a lawyer may accept referrals from a lawyer referral service organized as a profit-making venture and to which the lawyer has paid a fee or given anything of value. The committee answered under both the former Code of Professional Responsibility (SCR chapter 20, repealed effective January 1, 1988) and the Rules of Professional Conduct for Attorneys (re-created effective January 1, 1988).

Under the Code, the committee concluded a lawyer may not accept referrals from a for-profit referral service to which the lawyer pays any fee or gives anything of value for the service's recommending the lawyer through referral, citing SCR 20.09, Wis. Stat. section 757.295 (prohibitions against solicitation of legal business), and ABA Standing Committee on Ethics and Professional Responsibility Informal Opinion 85-1510 (which analyzed the ABA version of the rule and concluded it would preclude lawyer participation in this type of service). Under the new Rules, however, the committee concluded that if the lawyer paid no consideration for the potential or actual receipt of referral clients from the service, it appears participation would be permissible under SCR 20:7.2(b).

The committee concurred with the ABA committee's Informal Opinion 85-1510 caveat that constitutional questions may be involved, and concluded that the ultimate answer to the question lies with the courts.

Currency note

This opinion was issued in 1987, before Wisconsin's July 1, 2007 adoption of the revised Rules of Professional Conduct for Attorneys (the state's Ethics 2000 update), and it analyzes the transition from the former Code to the Rules re-created effective January 1, 1988. The advertising and referral rule SCR 20:7.2(b) and the cited statute may since have been amended. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule, deadline, or requirement mentioned here.

Common questions

Q: Can a lawyer pay a for-profit referral service to send clients?

A: Under the former Code, the committee concluded no; a lawyer could not accept referrals from a profit-making service to which the lawyer paid any fee or gave anything of value for the referral, citing SCR 20.09 and Wis. Stat. section 757.295.

Q: Did the new Rules change that?

A: The committee concluded that under the new Rules, if the lawyer paid no consideration for the potential or actual receipt of referral clients, participation appears permissible under SCR 20:7.2(b).

Q: Did the committee treat its conclusion as the final word?

A: No; per the opinion, the committee concurred with ABA Informal Opinion 85-1510 that constitutional questions may be involved and concluded the ultimate answer lies with the courts.

Background and rules framework

The opinion interpreted the former Code's prohibition on participation in for-profit referral arrangements (SCR 20.09) and the new Rule on payment for recommending a lawyer's services (SCR 20:7.2(b) / Model Rule 7.2), alongside Wis. Stat. section 757.295 on solicitation of legal business.

Citations and references

Rules of Professional Conduct:

  • Wis. SCR 20:7.2(b) / Model Rule 7.2 (payment for recommending a lawyer's services)
  • Wis. SCR 20.09 (former Code provision on referral services)

Statutes:

  • Wis. Stat. section 757.295 (prohibitions against solicitation of legal business)

Other opinions cited:

  • ABA Standing Committee on Ethics and Professional Responsibility Informal Op. 85-1510

See also

Source

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