Guides · Fees
Your lawyer wants to refer your case. Will it cost you more?
Almost always no. Here is how referral fees actually work, who pays them, and the one thing to ask before you agree.
Your lawyer says your case would be better handled by someone else, and they know who. The first thing most people think is that they are about to be charged twice.
You are not. In nearly every state the rule is the same on this one point: the total fee cannot increase because the case was referred. The two firms divide the fee you already agreed to. What changes is how that fee is split behind the scenes, not what you pay.
What actually happens
Say you sign a contingency agreement at a third of any recovery. Your original lawyer refers the case to a firm that handles that work every week. You still pay a third. The two firms then divide that third between themselves, in whatever proportion their agreement sets. Your side of it is unchanged.
What you are entitled to know
States differ on the details, but the common thread is that this cannot happen behind your back. Depending on where you are, the firms may need to tell you all of the following:
- that more than one firm is involved, and which ones
- that the fee is going to be divided
- the share each firm receives
- whether each firm is taking responsibility for your case, or only one of them is
Several states require your agreement to this in writing, and some require your signature specifically. A handful require the arrangement to be proportional to the work each firm actually does. The rule that applies to you depends on your state, and we publish a plain-English summary of all fifty-two jurisdictions with a link to the rule text: referral fee rules by state.
The one question to ask
Ask: "Who is actually going to work on my case, and who do I call when I have a question?"
The fee split matters far less to you than the answer to that. A referral where the second firm does the work and answers the phone is usually good news, because it means your first lawyer was honest enough to say a case was outside their lane. A referral where nobody can tell you who is responsible is the one to push back on.
When you should be suspicious
If anyone tells you the total fee is going up because a second firm is now involved, stop and ask for that in writing with the rule that permits it. If the answer is vague, that is worth a second opinion.
This is general information about how fee division works, not advice about your matter. Your own lawyer, or a second one, should look at your actual agreement.