Can a law firm pay a nonlawyer employee a percentage of the fees from clients they bring in, and have that employee solicit clients?

Plain-English summary

A firm asked about employing a nonlawyer, a former bank officer, who would be paid a base fee plus a percentage bonus based on the gross fees from the clients he generated, and who would also solicit clients for the firm. The committee was of the opinion that the proposed fee splitting would be improper and would violate RPC 5.4(a) and RPC 7.2(c).

The committee added that if the nonlawyer were soliciting clients who had not had a previous relationship with the law firm, that conduct would violate RPC 7.3(a).

Currency note

This opinion was issued in 1995, before the Washington State Bar Association's adoption of the 2006 revisions to the 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 Treat this page as historical context, not current guidance.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. RPC 5.4 corresponds to ABA Model Rule 5.4 (professional independence and sharing fees with nonlawyers), and RPC 7.2 and 7.3 to ABA Model Rules 7.2 and 7.3 on advertising and solicitation.

Common questions

Q: Can a firm pay a nonlawyer a percentage of the fees from clients they bring in?

A: No. The committee said paying a nonlawyer a percentage bonus on the gross fees from clients he generated is improper fee splitting that violates RPC 5.4(a) and 7.2(c).

Q: Can the nonlawyer employee solicit new clients for the firm?

A: The committee said that if the nonlawyer solicits clients who had no previous relationship with the firm, it would violate RPC 7.3(a).

Background and rules framework

The opinion applied RPC 5.4(a) (sharing fees with nonlawyers, corresponding to ABA Model Rule 5.4), RPC 7.2(c) (advertising and payment for recommendations, ABA Model Rule 7.2), and RPC 7.3(a) (solicitation, ABA Model Rule 7.3). The committee treated the percentage-of-fees compensation as prohibited fee sharing and the nonlawyer's solicitation of new clients as prohibited solicitation.

Citations and references

Rules of Professional Conduct:

• ABA Model Rule 5.4 (professional independence; sharing fees with nonlawyers); Washington RPC 5.4(a)
• ABA Model Rule 7.2 (advertising; payment for recommendations); Washington RPC 7.2(c)
• ABA Model Rule 7.3 (solicitation of clients); Washington RPC 7.3(a)

See also

• WA Ethics Op. 1143: Salaried Lawyer at a Nonprofit Billing Members, Fee Sharing
• WA Ethics Op. 1177: Real Estate Closing Relationship and Fee Splitting

Source

• Landing page: https://ao.wsba.org/print.aspx?ID=687

Original opinion text

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

Advisory Opinion: 1605
Year Issued: 1995
RPC(s): RPC 5.4(a); 7.2(c); 7.3(a)
Subject: Fee sharing with nonlawyer; solicitation.

The Committee reviewed your inquiry regarding the employment of a nonlawyer who is a former officer of a bank. The Committee understood that the nonlawyer would be paid a base fee plus a percentage bonus based upon the gross fees from the clients he generated. Also, the employee would solicit clients for the law firm. The Committee was of the opinion that the proposed fee splitting would be improper and violate RPC 5.4(a) and RPC 7.2(c). In addition, the Committee was of the opinion that if the nonlawyer were soliciting clients who had not had a previous relationship with the law firm, it would violate RPC 7.3 (a).