Trusted Attorneys Who Pay Referral Fees in California

Referring a client to another lawyer provides the client with an attorney that has the right skill set to represent them legally. It also provides the referring attorneys with a referral fee as an incentive for referring clients. However, there is a shroud of confusion that results in lawyers hesitating to be part of a referral program.

Some lawyers are not completely sure about the laws pertaining to referrals, while others shy away from them because they don’t want to get into any legal trouble.

To prevent any of these problems from occurring, the Circle of Legal Trust (C.O.L.T) works together with a group of highly qualified attorneys, connecting clients with relevant attorneys, providing legal answers to lawyers, and establishing a community built on trust and integrity.

California Law on Referral Fees

The American Bar Association (ABA) states in their Rules of Professional Conduct the circumstances in which an attorney could refer their cases to another lawyer or a law firm. Most states follow those rules without much change. However, some states, including California, have added their own requirements to the ABA Rules of Professional Conduct.

Let’s explore the ABA model rules on referral fees.

ABA Model Rules of Professional Conduct on Referral

Attorney referrals are pretty common, and the rules are clearly mentioned under Model Rule 5.4(a), 7.2(b), and 1.5(e).

• Model Rule 5.4(a) states that an attorney can not share fees with non-lawyers.
• Model Rule 7.2(b) states that the lawyer is not required to provide anything of value to someone for recommending their legal services.

The above rules mention the conditions where referral fees are prohibited, but Model Rule 1.5 (e) provides the following circumstances for attorneys to take referral fees:

• The client agrees to the arrangement in writing and understands the share of legal fees each lawyer will receive from this arrangement.
• Each lawyer assumes joint responsibility, or the division of the referral fees is in proportion to the services performed.
• The referral fee must be reasonable.

ABA Model Rules ensure that attorneys are not incentivized to refer cases as they are getting paid generous referral fees for not taking any responsibility. The law holds both the referring attorneys and receiving attorneys liable, ensuring greed does not overshadow legal ethics.

Most states follow the above-mentioned rules, while some states, like California, have their own requirements.

Key Difference in ABA and California Rules Pertaining to Referral Fees

The California Rules of Professional Conduct differ slightly from the ABA Model Rules.

While the ABA Model Rules do not allow attorneys to collect referral fees unless the fee is proportional to the work performed by the attorney on the client’s case, California Rule 1.51 allows for pure referral fees.

Pure referral fees under California Rule 1.51 permit attorneys to refer cases to other lawyers without the need to perform any work on the case. This rule aims to serve the client’s best interests as inexperienced attorneys can refer complex cases to experienced lawyers. It incentivizes inexperienced attorneys to forward cases to competent counsel rather than work on them themselves.

Why Should You Refer Your Case to Another Law Firm?

Litigating serious injury or wrongful death cases can be challenging and expensive. Not all attorneys are able to take the pressure of complex cases, and many do not have the resources to pursue legal action.

Some attorneys also face situations where they have to turn down cases as they may not have the right experience or the time to take them up. You may have taken a dream case only to realize later down the road the financial and legal nightmare of piling litigation costs and the enormous time consumed.

By referring your case to other practicing attorneys, you will be able to save your law firm’s resources and focus on your firm’s core business. Referring cases also improves relationships and builds trust between other attorneys, providing more opportunities for future referrals.

How Does C.O.L.T Ensure Experienced and Aggressive Litigators?

Attorneys shy away from referrals or referring cases as they don’t want to end up in legal trouble. With Circle of Legal Trust, you don’t need to worry about the legalities. Our personnel establish that each attorney has a referral fee agreement already in place that their attorneys abide by, and referral fees are always paid on time according to their fee-sharing arrangement. If they fail to meet their obligations, their star ratings will fall, ultimately leading to expulsion from the organization.

C.O.L.T handpicks experienced attorneys to join their community, and the selection requirements remain stringent, with only less than half of 1% of the attorneys becoming members.

Why Choose C.O.L.T?

Whether you’re a potential client looking for experienced legal counsel or an attorney receiving an invitation to become a member, C.O.L.T is the perfect platform for both clients and attorneys.

Here are some reasons why attorneys should choose to become members of the Circle of Legal Trust:

• You don’t need to worry about a referral agreement, as we already have one ready for immediate use.
• Since your firm’s reputation is on the line when you refer a client to another attorney, our lawyers ensure that you receive regular case status rather than stonewall you.
• You don’t need to worry about referral fee arrangements as our attorneys provide referral fees on time.
• C.O.L.T teaches lawyers how to effectively use SEO techniques to ensure strong search engine rankings.
• Attorneys are also taught how to effectively market their law firms themselves without becoming victims of SEO scammers.
• If your legal website is not ADA compliant, you may run the risk of getting sued. C.O.L.T experts can help check your website out and provide guidance accordingly.
• Our legal team has more than eight years of experience in mentoring, guiding, and helping lawyers.
• C.O.L.T has many knowledgeable contributors that provide free educational resources to help the local and international lawyer community.

If you’re a potential client looking for an experienced attorney that can better cater to your legal case, here are some reasons why you should choose C.O.L.T as your preferred legal referral service:

• Save yourself time in seeking legal experts, as we have already handpicked the best attorneys as members.
• Our legal personnel will go over your case with you free of charge and then refer you to an attorney that best suits your legal needs. If you slipped and injured yourself due to a wet floor, our personnel will connect you with an experienced personal injury attorney.

Contact C.O.L.T Now

Irrespective of whether you’re a law student looking for answers, a potential client looking to connect with an experienced personal injury attorney, or a lawyer looking to join this international organization, contact us at +(888) 494-5015, and we will guide you accordingly.