Referral fee rules · Texas

Referral fees in Texas

Tex. Disciplinary Rules of Prof'l Conduct, Rule 1.04(f)-(g) · Proportional work or joint responsibility

Texas permits fee division between lawyers in different firms only if the division is in proportion to the professional services performed by each lawyer or is made between lawyers who assume joint responsibility for the representation. The client must consent in writing before the association or referral occurs, and the consent must disclose the identity of all lawyers or firms involved, whether the division is on a proportionate or joint-responsibility basis, and the share or basis of division. The aggregate fee must not be unconscionable under Rule 1.04(a). Rule 1.04(g) extends these requirements to any referral or association agreement.

What Texas requires

  • Division proportional to services performed OR joint responsibility assumed
  • Written client consent obtained before the association or referral
  • Disclosure of identity of all participating lawyers/firms
  • Disclosure of the basis of division and each lawyer's share
  • Aggregate fee not unconscionable (Rule 1.04(a))

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.

Members can draft this in a minute

The member tool takes both lawyers' jurisdictions, checks the division against each rule, flags anything that would not hold up, and drafts the agreement and the client consent. Membership is free.

Jurisdictions with a similar rule

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