Multistate Professional Responsibility Examination (MPRE)Regulation of the Legal ProfessionMedium
Attorney George, licensed in State P, has been approached by a prospective client, Maria, who was injured in a car accident. George learns that Maria was referred to him by 'Accident Aid Services,' a non-lawyer referral service that charges lawyers a percentage of any fees earned from referred clients. George has not previously used this service. Is it ethical for George to accept the referral from Accident Aid Services under these terms?
- AYes, as long as Maria consents to the referral fee arrangement.
- BYes, provided the referral service does not engage in direct solicitation of accident victims.
- CNo, because lawyers are generally prohibited from paying referral fees to non-lawyers.
- DNo, unless Accident Aid Services is a qualified lawyer referral service approved by the state bar.
Show answer & explanationAnswer & explanation
Correct answer: C. No, because lawyers are generally prohibited from paying referral fees to non-lawyers.
Model Rule 7.2(b) prohibits a lawyer from giving anything of value to a person for recommending the lawyer's services, with certain exceptions. Paying a percentage of fees to a non-lawyer referral service falls squarely under this prohibition, as it constitutes giving something of value for a recommendation.
Why the other options are wrong
- A. Client consent does not cure the ethical violation of paying a referral fee to a non-lawyer.
- B. While direct solicitation by the referral service might also be an issue, the primary ethical violation for George is paying for the referral.
- D. Qualified lawyer referral services approved by the bar are an exception, but the question describes a non-lawyer referral service charging a percentage of fees, which is typically not approved under such exceptions.
Paying for Referrals (Non-Lawyers)
Lawyers are generally prohibited from giving anything of value to a person for recommending the lawyer's services, especially to non-lawyers.
- Prevents potential for UPL and protects lawyer independence.
- Exceptions exist for certain authorized lawyer referral services or modest gifts of appreciation.
- Paying a percentage of fees is a clear violation.
Memory trick: Don't pay for praise, in ethical ways, keep your client base.