Ethics Hotline & Opinions

Ethics Docket No. 1995-11

MARYLAND STATE BAR ASSOCIATION, INC.

COMMITTEE ON ETHICS

ETHICS DOCKET NO. 1995-11

Referrals: Operation of a for profit private lawyer referral service

You indicate that you are legal counsel to a company which operates a private lawyer referral service. You have requested our Committee to opine as to whether a for profit, private lawyer referral service would be permissible under the Maryland Rules and Regulations of your company, a telephone answering agreement to be entered into between a company operating an answering service, and attorneys participating in your lawyer referral service. You also enclose a marketing agreement to be entered into between your company and the attorney. It is unclear from your letter whether the company operating the telephone answering service is related in any way to your lawyer referral company.

Rule 7.2 (c) of the Maryland Rules of Professional Conduct states:

A lawyer shall not give anything of value to a person for recommending a lawyer's services, except that a lawyer may pay the reasonable cost of advertising or written communication permitted by this rule and may pay the usual charges of a not-for-profit lawyer referral service or other legal service organization. 

The comment to Rule 7.2 states:

A lawyer is allowed to pay for advertising permitted by this Rule, but otherwise is not permitted to pay another person for channeling professional work. This restriction does not prevent an organization or person other than the lawyer from advertising or recommending the lawyer's services. Thus, a legal aid agency or prepaid legal services plan may pay to advertise legal services provided under its auspices. Likewise, lawyer may participate in not-for-profit lawyer referral programs and pay the usual fees charged by such programs.

In Ethics Docket 87-41, this Committee opined that,

"" . . . for a lawyer referral system or other legal service organization to be within the exception of 7.2 (c), it must be not for profit.

Your inquiry asks the specific question as to whether a for profit, private lawyer referral service would be permissible. It is the Committee's opinion that such a service would not be permissible.

We have on several other occasions, however, rendered opinions on issues similar to those raised by you. Those opinions include 87-17, 88-65 and 90-46. I enclose copies of all of the previously mentioned opinions for your review. I believe that our prior opinions will fully explain our Committee's position on joint advertising programs and legal referral services.

Because of the narrow wording of your request for an opinion, the Committee has not reviewed the specific Rules and Regulations and Agreements that were attached to your inquiry.

 

References: Ethics Dockets 1987-17, 1987-41,  1988-65 and  1990-46

 

DISCLAIMER: Opinions of the Maryland State Bar Association (MSBA) Ethics Committee are an uncompensated service of the MSBA. This Committee’s opinions are not binding on the Maryland Court of Appeals, Maryland Attorney Grievance Commission, MSBA or this Committee. The reader is advised that subsequent judicial opinions, revisions to the rules of professional conduct, and future opinions of this Committee may render the Opinions stated herein outdated. As such, the Committee’s opinions are advisory only and neither the Committee nor the MSBA assumes any liability whatsoever with respect thereto. Accordingly, reliance upon the opinions of this Committee is solely at the risk of the user.