May a law firm join a referral arrangement where a corporation collects monthly fees from members and refers them to the firm for a free half-hour and a 10% discount?
Apply this to your situation
This page answers the general question as of 1989. Ask about yours and see what the current Washington Rules of Professional Conduct say for your facts, with citations.
Plain-English summary
A corporation formed by an insurance agent would provide referrals for services to certain contract engineers in return for the engineers paying a monthly fee to the corporation. Among other things, the corporation would refer its engineer members to the inquiring law firm on the condition that the firm would provide the members a free half-hour initial interview and a 10% discount from its regular hourly rates.
The committee, with one dissent, was of the opinion that such a proposal would violate RPC 7.2(c) because the fact that the lawyer was part of the package being sold by the corporation constituted something of value given to the corporation, enabling it to charge fees from its members.
Currency note
This opinion was issued in 1989, before the Washington State Bar Association's adoption of the 2006 revisions to the Washington Rules of Professional Conduct. 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 Treat this page as historical context, not current guidance.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 firm be the referred provider in a corporation's paid membership package?
A: Under this 1989 opinion, the committee (with one dissent) concluded the arrangement would violate RPC 7.2(c).
Q: Why did the committee find a violation?
A: Because the lawyer being part of the package the corporation sold was something of value given to the corporation that enabled it to charge fees from its members.
Q: Was the decision unanimous?
A: No. The committee noted one dissent.
Background and rules framework
RPC 7.2(c), Washington's then-current version of the ABA Model Rule 7.2 prohibition, bars a lawyer from giving anything of value to a person for recommending the lawyer's services. The committee reasoned that the lawyer's inclusion in the corporation's fee-generating package was itself a thing of value supplied to the corporation, bringing the arrangement within the prohibition.
Citations and references
Rules of Professional Conduct:
- ABA Model Rule 7.2 (advertising; giving anything of value for recommending services)
- Washington RPC 7.2(c)
See also
- WA Ethics Op. 1276: Free Legal Services in Exchange for Referrals
- WA Ethics Op. 1292: A Doctor Distributing a Lawyer's Business Cards
Source
- Landing page: https://ao.wsba.org/print.aspx?ID=377
Original opinion text
Reproduced from the official source for research purposes. The linked source is authoritative.
The Committee understood your inquiry to concern a proposal whereby a corporation formed by an insurance agent would provide referrals for services to certain contract engineers in return for the engineers paying a monthly fee to the corporation. Among others, the corporation would refer its engineer members to your law firm on the condition that you would provide the members a free 1/2 hour initial interview and a discount of 10% from your regular hourly rates. The Committee, with one dissent, was of the opinion that such a proposal would violate RPC 7.2(c) because the fact that the lawyer was part of the package being sold by the corporation constituted something of value given to the corporation enabling it to charge fees from its members.
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