Referral Fees are Coming : Myths and Realities
Lawyers are often hesitant to embrace change . Afterall , law is built on condition and precedent . Yet , when change confronts the legal industry , lawyers must either adopt the change or lose our market share to the change .
LegalZoom has changed the legal landscape for many transactional lawyers , and the founders of LegalZoom are once again planning to introduce changes that will further transform the legal landscape . Specifically , the founders of LegalZoom are planning to break into the market of taking referral fees from lawyers . Those lawyers who adopt accepting and giving referral fees will reap the benefits and cut out the LegalZoom founders . Those who do not , may end up giving the founders of LegalZoom fees that practitioners could have kept for themselves .
Referral fees are a largely misunderstood tool . They are commonly used in personal injury cases , and sometimes in other contingency fee matters . Yet , beyond contingency fee cases , the practice of giving referral fees is nearly nonexistent . In fact , many attorneys believe a myth that referral fees cannot be given except in contingency fee cases . Some also incorrectly believe that referral fees cannot be given in family law or criminal law cases . However , the truth is that the Rules Regulating The Florida Bar do not prohibit referral fees , when done properly .
Rule 4-1.5 ( g ) states that :
By Doug Jackson
[ A ] division of fee between lawyers who are not in the same firm may be made only if the total fee is reasonable and :
( 1 ) the division is in proportion to the services performed by each lawyer ; or
( 2 ) by written agreement with the client :
Each lawyer assumes joint legal responsibility for the representation and agrees to be available for consultation with the client ; and
The agreement fully disclosed that a division of fees will be made and the basis upon which the division of fees will be made .
Because referral fees are permissible , the founders of LegalZoom are looking to profit from those lawyers willing to give and take referral fees . To do this , the founders of LegalZoom have created a law firm called Overture .
Essentially Overture will act as an intermediary between lawyers who have referrals to give and those lawyers who would like to receive referrals to grow their case load . The referring lawyer will get fifteen percent ( 15 %) of the attorney fees collected , the referred attorney will get sixty-five percent ( 65 %) of the attorney fees collected , and
Robert Maxim Stoler , Esq .
Certified Circuit and Federal Mediator
‣ Certified Mediator since 2001
‣ Board Certified Civil Trial Lawyer since 1995
‣ “ Advocate ” level member of ABOTA
‣ Class “ A ” office space in Downtown Tampa
JANUARY / FEBRUARY 2024
Auto / Motorcycle ● Premises Liability ● Civil Rights ● Police Liability Claims
● Personal Injury ● Product Liability ● Wrongful Death ● Bad Faith Claims
● Medical Malpractice ● Nursing Home ● Property Claims
Stoler Russell Keener Verona P . A .
201 N . Franklin Street , Suite 3100 , Tampa , Florida 33602 ● 813.609.3200 ● rstoler @ stolerrussell . com
10