How to Ethically Share Fees
A fee division is allowed for contingency matters if the client is informed and does not object. For flat fee matters, proportionality or joint responsibility is required. Understand how to ethically share under Alabama’s rules.
Alabama Rule
Alabama Rules of Professional Conduct Rule 1.5(e) notes: (e) A division of fee between lawyers who are not in the same firm, including a division of fees with a referring lawyer, may be made only if:
- Either
- a. the division is in proportion to the services performed by each lawyer, or
- b. by written agreement with the client, each lawyer assumes joint responsibility for the representation, or
- c. the client is advised of and does not object to the participation of all the lawyers involved;
- the client is advised that a division of fee will occur; and
- the total fee is not clearly excessive.
If you have additional questions about sharing fees, please contact us today.
Conclusion
Alabama is unique in that joint responsibility is not required, nor must the client be informed of the proportion of fee divisions. While disclosure to the client is required, the client is not required to consent in writing. Even though the courts have expressly confirmed this conclusion (Ethics Opinion, F0 2023-01), it is still recommended to inform the client in writing of fee divisions.