New York Law (NYLE) Practice Exam

What is required for a lawyer to accept a referral fee from another attorney?

1. The lawyer must consult with the court

2. The client must be informed and consent

3. The organization must approve the fee

4. The referral attorney must be affiliated with the firm

The correct answer is: The client must be informed and consent

For a lawyer to accept a referral fee from another attorney, it is essential that the client is informed about the referral arrangement and provides their consent. This requirement is rooted in the ethical obligation for attorneys to be transparent with their clients regarding fees and the involvement of other parties in the case. The rationale behind this is to ensure that clients are aware of who is benefiting financially from the legal services rendered and to maintain trust in the attorney-client relationship. The requirement for client consent acknowledges the importance of the client's autonomy and right to make informed decisions regarding their legal representation. Lawyers are not only held to legal standards but also to ethical guidelines set forth by professional conduct rules, which typically mandate such transparency in fee arrangements. This stipulation is a crucial aspect of ethical law practice because it reinforces accountability and the obligation of lawyers to prioritize their clients' interests. Other options, like consulting with the court, obtaining approval from an organization, or requiring the referral attorney to be affiliated with the firm, are not standard requirements for accepting referral fees under professional conduct rules. Therefore, ensuring that clients know about and consent to any referral fee arrangement is the correct requirement for a lawyer in this scenario.