QUESTION: Attorney has applied to the KCMBA lawyer referral service. Is the proposed ten percent (10%) fee agreement reasonable under Rule 4-10.1(e)?

ANSWER: The ten percent (10%) fee is considered reasonable under Rule 4-10.1(e). Attorney may participate in such a program and pay the fees without violating the Rules of Professional Conduct.

QUESTION: Attorney´s firm is interested in joining a network that facilitates electronic forwarding of consumer collection cases between member law firms across the United States. Attorney has some concerns about how the network funds its operation. The network charges three percent of net collections billed monthly to each firm. Attorney has some concern about splitting fees with non-attorneys. Is this fee agreement permissible and may attorneys licensed to practice in Missouri participate in such an agreement? ANSWER: Based on the information Attorney has provided, it appears that the network is a lawyer referral service. Under Rule 4-7.2(c), Attorney may not give anything of value in exchange for a referral unless the lawyer referral service is registered with this office under Rule 4-10.1.

QUESTION: May lawyer referral services collect a percentage of fees generated on cases referred to an attorney from the service. This provision seems to directly conflict with Rule 4-1.5(e), which allows a division of fees in proportion to the services performed by each lawyer, or with written acceptance, both lawyers assume joint responsibility for the representation. The referral service does not perform any of the legal services nor do they assume joint responsibility. Is this fee split acceptable under the rules? ANSWER: Under Rule 4-7.2(c), Attorney may pay the fees of a lawyer referral service registered under Rule 4-10.1.

QUESTION: Attorney is general counsel for an advertising company offering joint television advertising services to attorneys in many states. Television commercials are designed to encourage telephone calls from injured persons. Viewers are given an "800" number to call. The company enters into agreements with attorneys or firms for the exclusive right to receive all calls in their geographical area. The commercials state that they are paid advertising and not a lawyer referral service. Does this program comply with Missouri´s rules? ANSWER: Based on the information, it appears that Attorney´s program is a joint advertising program and it is not a lawyer referral service under Rule 4-10.1. Attorney should not consider this opinion as approval of Attorney´s program beyond the issue of registration as a lawyer referral service. Depending on the exact nature of the advertisements, it seems possible that this approach would give the impression that these attorneys have a professional relationship with one another. It seems possible that a consumer would get the impression that the attorneys are members of a single, multi-location law firm. If the advertising reasonably conveys that impression, it would have ethical and other implications for the attorneys involved.

QUESTION: Attorney recently joined a lawyer referral service. The service has informed Attorney that when the service learns of a potential accident victim, they contact the victim by telephone to let them know that if they need a lawyer, the service is available. The potential client must then call back at a later time if he or she wants to be referred to a lawyer. No referrals are made until the potential client calls the referral service. Is this procedure ethical? Specifically, does a qualified lawyer referral service under Rule 4-10.1 qualify under Rule 4-7.3(b)(2) as a public or charitable legal services organization which can initiate personal contact with a prospective client? ANSWER: With limited exceptions listed in Rule 4-7.3(b), it is improper for an attorney to solicit potential clients in person or by telephone. It is also improper for an attorney to engage in conduct through another person or entity if the attorney would violate the rules by directly engaging in that conduct. Therefore, it would be a violation of Rule 4-7.3 for Attorney to participate in a lawyer referral service which solicits potential clients for attorneys in person or by telephone. It would also violate Rule 4-7.3 for Attorney to participate in a lawyer referral service which solicits potential clients through targeted mailings because it is Attorney´s professional obligation to determine, in each situation, that such solicitation does not violate Rule 4-7.3(c).

QUESTION: Attorney was contacted by a group wanting to provide pre-paid legal services to its members in Missouri. Is it ethical for Attorney to participate in the plan? ANSWER: Based upon our analysis it appears that the plan is in reality a referral service, and is not registered as a Lawyer Referral Service under Rule 4-10.1. Therefore, Attorney would violate Rule 4-7.2(c) by participating.

QUESTION: Attorney´s firm has contracted with a company to carry out a "cooperative marketing and advertising program´. An 800 number would be advertised and the company would then refer callers to one of the participating attorneys. Would participation in this program be a violation of Rule 4-7.2(c)? ANSWER: The company about which Attorney has inquired is registered as a Lawyer Referral Service under Rule 4-10.1, which became effective January 1, 1996. Therefore, Attorney´s participation would not violate Rule 4-7.2(c).

QUESTION: Attorney is not registered as a qualified lawyer referral service under Rule 4-10.1. Attorney would like to refer certain types of cases, which Attorney does not handle, to another attorney. In exchange, the other attorney would pay Attorney either a percentage of the award or a flat fee depending on the type of case. ANSWER: The referral system Attorney has described would violate Rule 4-7.2(c).

QUESTION: Attorney submits information about a business which refers clients to attorneys and charges a fee for the referral. Instead of accepting cash, attorney accepts a form of credit which can be used to pay other members of the system for their services. May Attorney participate in this program? Is the credit system fee splitting? ANSWER: Unless the program becomes registered as a qualified lawyer referral service under Rule 4-10.1, Attorney would violate Rule 7.2(c). Without more specific, detailed information regarding the program, it is not possible to determine whether the credit system would involve fee splitting prohibited by Rule 4-5.4.

QUESTION: Attorney is considering participating in an advertising program which involves advertisements run by a separate company. When calls come in regarding a particular area of practice, the operator calls one of the participating attorneys on a rotation basis. The attorney initiates all contact with the prospective client. The attorneys pay a flat fee per month for participating in the program regardless of the number of calls received by the lawyer or the number of cases accepted. Will Attorney violate the rules by participating in this program? ANSWER: This program is a lawyer referral service. Under Rule 4-7.2(c)(3), Attorney may participate in a lawyer referral service if it is a qualified service registered under Rule 4-10.1.

QUESTION: Attorney belongs to an organization which refers potential clients to Attorney. This organization is requesting a voluntary contribution by Attorney of 10% of the fee Attorney receives. May Attorney make this contribution? ANSWER: It would be appropriate for Attorney to make the contribution only if the organization which makes the referral is a qualified lawyer referral service registered under Rule 4-10.1. Otherwise, the arrangement Attorney has described would violate Rule 4-7.2(c).

QUESTION: A law firm has a partner who has years of experience in a particular industry. May the law firm make the partner available for a fee to current clients and non-clients in the industry to present educational seminars on legal issues related to the industry? May the law firm market the seminars under a fictitious name? May the partner make personal contact with friends and former colleagues to make them aware of the availabilty of these seminars? May the law firm make personal or written contact with representatives of non-clients to make them aware of the availability of these seminars? May the partner give these seminars for a business not related to the law firm if the law firm is compensated? ANSWER: Yes, the law firm may make the partner available for educational seminars. The law firm may market the seminars under a fictitious name but it would be required to disclose the relationship between the law firm and XYZ wherever XYZ is held out to the public. Under Rule 4-7.3(b), the partner may make personal contact with close friends to make them aware of the partner´s availability to present seminars. The partner or the firm may initiate contact with other friends, former colleagues, etc., to make them aware of the partner´s expertise and availability only in writing. The partner may provide seminars through an unrelated business for a fee. However, if this business will also function as a referral service, it must qualify and be registered under Rule 10.1.

QUESTION: Attorney is a member of XYZ firm. ABC firm has approached Attorney regarding an arrangement in which ABC firm would refer clients to XYZ and receive a portion of the retainer paid by the client to XYZ firm, in accordance with a schedule established by the two firms. No portion of the arrangement calls for ABC to continue to be responsible for the matter or for the client to consent. ANSWER: Based on the information Attorney has provided, the arrangement Attorney proposes would violate the requirements for permissible fee sharing under Rule 4-1.5(e).