As an attorney in Illinois, one way to expand your practice and bring in new clients is through referrals. Referrals not only help build your reputation and establish your expertise in the field, but they can also generate additional income for your firm through referral fee agreements. In this article, we will take a closer look at Illinois attorney referral fee agreements and how to ensure that your agreement complies with the rules set forth by the Illinois Rules of Professional Conduct.
In Illinois, referral fee agreements are governed by Rule 1.5(e) of the Illinois Rules of Professional Conduct. According to this rule, a lawyer may receive a fee for referring a client to another lawyer or law firm, as long as the referral is made in writing and the client gives informed consent. The written agreement must also state the share of the fee that will be paid to the referring lawyer or law firm.
The referral fee must also be reasonable and not exceed the customary fees charged for similar services in the geographic area where the services will be rendered. Additionally, the referring lawyer must not have any responsibility for the matter beyond the initial referral, and the fee must be paid by the receiving lawyer or law firm.
When drafting a referral fee agreement, it is important to clearly state the terms and conditions of the agreement. This includes outlining the scope of the services to be provided, the fee to be paid, and any other relevant details. The agreement should also include language stating that the receiving lawyer or law firm will be responsible for all aspects of the representation and that the referring lawyer will not have any involvement in the case beyond the initial referral.
It is also important to obtain informed consent from the client before entering into a referral fee agreement. This means that the client must be made aware of the nature of the arrangement, the amount of the fee, and the fact that the referral fee may result in reduced fees for the client. This information should be provided in writing and signed by the client.
In conclusion, a well-drafted Illinois attorney referral fee agreement can be a valuable tool in building your practice and generating additional income. However, it is important to ensure that the agreement complies with the rules set forth by the Illinois Rules of Professional Conduct and that all parties involved are fully aware of the terms and conditions of the agreement. By following these guidelines, you can establish a successful referral program that benefits both your firm and your clients.
