Also known as: reciprocal professional referral agreement · reciprocal referral agreement · reciprocal referral agreements · referral agreements · reciprocal referrals
Written by attorneys · grounded in primary & secondary sources — see below
An arrangement between a lawyer and another lawyer or nonlawyer professional under which each refers clients or customers to the other. The arrangement is permitted only when the agreement is nonexclusive.
Dana, a medical-malpractice lawyer, signs a written agreement with Summit Orthopedics. Summit staff tell patients that Dana is one option among several malpractice lawyers. Dana agrees to disclose the arrangement and may refer clients needing imaging to Summit at discounted rates. No money changes hands for the referrals. The arrangement satisfies the rule because it remains nonexclusive.
Sylvia, a transportation lawyer, forms a standing alliance with Mountain Move. Mountain Move automatically supplies Sylvia's contact information to truckers after inspections. Sylvia agrees to recommend Mountain Move to every carrier client. Although the written alliance lacks an exclusivity clause, Sylvia has referred no other logistics company in three years. The pattern raises questions about whether the practical operation preserves client choice.
Select any source to read its text and confirm it supports the definition.
The agreement must not be exclusive. Clients must be informed of the existence and nature of the arrangement whenever a referral occurs under it. No separate payment for referrals is allowed beyond ordinary discounted service rates.
Supporting sources
An exclusive agreement pressures the lawyer to steer clients to one provider regardless of the client's best interests. The rule requires nonexclusivity so the lawyer retains professional discretion to refer elsewhere when appropriate.
Supporting sources
Yes. Disclosure of the existence and nature of the agreement must occur whenever the lawyer makes a referral under it. The disclosure allows clients to evaluate whether the recommendation might be influenced by the arrangement.
Supporting sources
Yes. A volume-based discount linked to the number of referrals constitutes something of value received in exchange for referrals. Such a benefit violates the prohibition on compensating a person for recommending the lawyer's services.
Supporting sources