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Simple English definitions for legal terms
fee-sharing
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A quick definition of fee-sharing:
Fee-sharing is when two or more lawyers split the money they get paid for working on a case together. Sometimes, one lawyer refers a case to another lawyer and they split the fee. However, some states think this is not okay. Lawyers are not allowed to split fees with people who are not lawyers.
A more thorough explanation:
Fee-sharing refers to the division of attorney's fees between two or more lawyers. This can happen in two ways:
- When a lawyer who handled a matter refers the matter to another lawyer, and they divide the fees earned from the case.
- When two or more lawyers represent a client jointly, but they are not in the same law firm, and they divide the fees earned from the case.
It is important to note that some states consider fee-splitting unethical, and attorneys are prohibited from splitting fees with non-lawyers.
Example 1: Attorney A refers a personal injury case to Attorney B. Attorney B handles the case and wins a settlement of $50,000. Attorney A and Attorney B agree to split the fees earned from the case, with Attorney A receiving 25% and Attorney B receiving 75%.
Example 2: Attorneys C and D jointly represent a client in a divorce case. They work together to negotiate a settlement of $100,000. Attorneys C and D agree to split the fees earned from the case, with each receiving 50%.
These examples illustrate how attorneys can divide fees earned from a case when they work together or refer cases to each other. However, it is important to follow ethical rules and regulations when doing so.