At some point, most attorneys make or receive a referral. Referring potential and existing clients is an integral part of the practice of law, contributes to the healthy ecosystem of the bar, and can be a means to maximize client outcomes. Referrals can also generate substantial income for practicing attorneys. Understanding and integrating referrals into your practice of law leverages an established network of trusted colleagues, builds the success of your practice, and can be the most direct path to achieving your client’s legal goals.
Serving the legal best interest of the client
In simple terms, a referral sends a prospective or existing client to work with another attorney. Some of the most common reasons for referring a client include subject matter, resources, experience, conflicts, and personal choice. Often, attorneys refer cases to colleagues who have experience and an established reputation for getting results on similar matters. In this way, the referring attorney might best serve the client’s needs by securing the most effective legal resources available. This can maximize not only the result for your client but also the return on investment for your time.
Unless specifically disclaimed, many attorneys practice with the expectation that the “referring attorney” (the one sending the case) will receive some portion of legal fees earned by the receiving attorney. The specifics of any such agreement vary between cases, but must always comply with ethical standards, infra.
Ethical considerations for referrals
Attorneys making or receiving referrals must comply with applicable bar and ethics rules. The Maine Bar Rules and Rules of Professional Conduct instruct the legal and ethical obligations for all Maine attorneys. Together with Ethics Opinions issued by the Board of Overseers, these standards govern the practice of law in Maine—including ethical considerations of referrals.
Ethical considerations of referrals are as diverse as the cases themselves. Fortunately, the Maine Professional Ethics Commission maintains a library of Ethics Opinions that guides a wide range of issues that might arise during referral practice. Attorneys should be familiar with these resources, which are updated on an ongoing basis.
Ethics opinions
- Prof. Ethics Comm’n, End. Op. No. 41 (Sept. 2019) (referrals between opposing counsel sharing a physical office space);
- Prof. Ethics Comm’n, Op. No. 69 (Mar. 14, 1986) (referrals from Public Interest Litigation Organizations);
- Prof. Ethics Comm’n, Op. No. 87 (Aug. 31, 1988) (structuring a privately operated lawyer referral service);
- Prof. Ethics Comm’n, Op. No. 99 (Sept. 6, 1989) (collection of referral service administration fees);
- Prof. Ethics Comm’n, Op. No. 101 (Jan. 17, 1990) (referrals between attorney-spouses);
- Prof. Ethics Comm’n, Op. No. 124 (May 6, 1992) (referrals from an independent advisor);
- Prof. Ethics Comm’n, Op. No. 133 (June 18, 1993) (remittance of referral service fees);
- Prof. Ethics Comm’n, End. Op. No. 145 (Oct. 2013) (referral fees when conflict bars representation);
- Prof. Ethics Comm’n, Op. No. 147 (Dec. 14, 1994) (impact of referral agreements on attorney professional judgment);
- Prof. Ethics Comm’n, Op. No. 150 (May 12, 1995) (referral fees when representing same client in a divorce);
- Prof. Ethics Comm’n, Op. No. 167 (Jan. 6, 1999) (“referring” attorneys);
- Prof. Ethics Comm’n, End. Op. No. 184 (July 2019) (referring clients to investment advisors).
Expanded financial opportunity
Attorney referrals offer many advantages, including additional opportunities for income generation. At Berman & Simmons, we generally pay referring attorneys one-third of the fee recovered. As the referring attorney, this can be a significant source of income from cases where you would otherwise be unable or underequipped to prosecute yourself. If you have a busy or specialized practice, referring a client’s case can ease workloads and help reallocate firm resources to maximize outcomes.
Where to send referrals
After confirming that referring a case comports with ethical and professional obligations, attorneys should consider several factors that inform where to send the client:
- Does the receiving attorney have experience practicing in this area of the law?;
- Is the receiving attorney a member in good standing of the bar(s) to which they are admitted?;
- What resources does the receiving attorney have at their disposal (financial, intellectual, professional, etc.)?;
- Does the receiving attorney have the capacity to give my client the attention their case requires?;
- Has the receiving attorney achieved consistent, successful results in similar cases?;
- If the receiving attorney faces an adverse outcome, will they be prepared to handle the appeal?; and
- Does the referring attorney communicate in a clear, reliable manner?
Ultimately, the referral relationship is built upon risk management and trust. As a referring attorney, you have an ethical obligation to safeguard your client’s legal best interest. Thoughtful consideration of the Rules and associating yourself with receiving counsel with whom you can communicate, and trust are the keys to success.
Benefits of referring clients
- New opportunities for financial growth
- Optimize your workload
- Maximize client outcomes
- Establish a network of trusted colleagues
- Build your practice
- Manage risk
- Safeguard clients’ legal best interests
Refer your clients to Berman & Simmons with confidence
If you have a personal injury or medical malpractice case outside the scope of your practice area, or in which liability or causation are especially complex or expensive, Berman & Simmons can help.* For decades, our law firm has partnered with attorneys in Maine and throughout New England on behalf of their injured clients. We handle the most complex cases and set records for the largest verdicts and settlements in Maine. We’ve recovered over $1.5 Billion for our clients.
* We share fees consistent with the Maine Rules of Professional Conduct adopted by the Maine Supreme Judicial Court.