Referral fee rules · Alabama
Referral fees in Alabama
Ala. R. Prof. Cond. 1.5(e) · Distinctive rule — read carefully
Alabama follows the ABA two-path pattern (proportional division, or joint responsibility by written agreement with the client) but adds a third path unique to contingency-fee cases: the fee may simply be divided between the referring/forwarding lawyer and the receiving lawyer with no proportionality or joint-responsibility requirement. In all cases the client must be advised of and not object to each lawyer's participation, must be told a division will occur, and the total fee must not be clearly excessive. So pure referral fees are effectively permitted in contingency matters but not in hourly or flat-fee matters.
What Alabama requires
- • division proportional to services, OR joint responsibility by written client agreement, OR (contingency cases only) division between referring and receiving lawyer
- • client advised of and does not object to participation of all lawyers
- • client advised that a fee division will occur
- • total fee not clearly excessive
Source: read the rule text
Educational summary, not legal advice. Rules change and several turn on the facts of the matter. Confirm against the current rule text and your own jurisdiction's version before agreeing to divide a fee. Remember that both the referring and receiving lawyer's rules can apply.
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Jurisdictions with a similar rule
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