Can a lawyer refer a client to another lawyer with whom the referring lawyer shares a business interest, such as a co-owned office corporation?

Plain-English summary

The inquiring lawyer rented office space from a corporation owned by a group of lawyers, and asked whether the lawyer could then recommend someone from that group of lawyers when independent advice of counsel was required.

The committee answered that the Rules of Professional Conduct do not prohibit referral of parties to other lawyers who might have a common business interest with the referring lawyer. It cautioned, however, that the referring lawyer must be careful to comply with RPC 1.5(e), 1.7(b), 4.3, 5.4, and 8.4(c).

Currency note

This opinion was issued in 2001, 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 Treat this page as historical context, not current guidance.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.

Common questions

Q: Can a lawyer recommend another lawyer with whom they share a business interest?

A: The committee opined that the Rules of Professional Conduct do not prohibit referral of parties to other lawyers who might have a common business interest with the referring lawyer.

Q: What rules does the referring lawyer have to satisfy?

A: The committee said the referring lawyer must be careful to comply with RPC 1.5(e), 1.7(b), 4.3, 5.4, and 8.4(c).

Q: What was the specific arrangement the committee addressed?

A: A lawyer renting office space from a corporation owned by a group of lawyers asked whether the lawyer could recommend someone from that group when independent advice of counsel was required; the committee said the referral was not prohibited so long as the listed rules were observed.

Background and rules framework

The opinion identifies the rules a referral to a lawyer sharing a common business interest must satisfy: RPC 1.7(b) (conflict of interest; Model Rule 1.7), RPC 1.5(e) (division of fees among lawyers; Model Rule 1.5), RPC 4.3 (dealing with an unrepresented person; Model Rule 4.3), RPC 5.4 (professional independence of a lawyer; Model Rule 5.4), and RPC 8.4(c) (conduct involving dishonesty or misrepresentation; Model Rule 8.4). The committee did not elaborate on the application of each rule beyond directing compliance.

Citations and references

Rules of Professional Conduct:

• Model Rule 1.7 / Washington RPC 1.7(b) (conflict of interest; current client)
• Model Rule 1.5 / Washington RPC 1.5(e) (division of fees among lawyers)
• Model Rule 4.3 / Washington RPC 4.3 (dealing with an unrepresented person)
• Model Rule 5.4 / Washington RPC 5.4 (professional independence of a lawyer)
• Model Rule 8.4 / Washington RPC 8.4(c) (dishonesty, fraud, deceit, or misrepresentation)

See also

• WSBA Ethics Op. 1017: Lawyer Who Also Acts as a Real Estate Broker
• WSBA Ethics Op. 1828: Lawyer Owning Shares in a Law Firm PSC
• WSBA Ethics Op. 1297: Lawyer in a Paid Referral Package

Source

• Landing page: https://ao.wsba.org/print.aspx?ID=1184

Original opinion text

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

Advisory Opinion: 1944
Year Issued: 2001
RPC(s): RPC 1.5(e); 1.7(b); 4.3; 5.4; 8.4(c)
Subject: Lawyer's referral of client to another lawyer with whom the referring lawyer has a common business interest

The inquiring lawyer asks whether a lawyer that is renting office space from a corporation owned by a group of lawyers can then recommend some one from that group of lawyers when independent advice of counsel is required.

The Rules of Professional Conduct do not prohibit referral of parties to other lawyers who might have a common business interests with the referring lawyer. The referring lawyer, however, must be careful to comply with RPC 1.5(e), 1.7(b), 4.3, 5.4 and 8.4(c).