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Simple English definitions for legal terms
fee-splitting
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A quick definition of fee-splitting:
Fee-splitting is when two or more lawyers divide the money they earn from a case. This can happen when one lawyer refers a case to another lawyer and they share the fee. However, some states think this is not okay. It can also happen when two lawyers work on a case together but are not in the same law firm. But, lawyers are not allowed to split fees with people who are not lawyers.
A more thorough explanation:
Fee-splitting is the practice of dividing attorney's fees between two or more lawyers. This can happen in two ways:
- When a lawyer who handled a case shares the fees with a lawyer who referred the case to them. Some states consider this practice unethical.
- When two or more lawyers represent a client together but are not in the same law firm. They split the fees earned from the case.
It is important to note that attorneys are not allowed to split fees with non-lawyers under most states' ethics rules.
Example 1: Lawyer A refers a client to Lawyer B for a personal injury case. Lawyer B wins the case and earns a fee of $10,000. Lawyer A and Lawyer B agree to split the fee equally. This is fee-splitting.
Example 2: Lawyer C and Lawyer D work together to represent a client in a divorce case. They both work on the case and earn a fee of $20,000. They agree to split the fee equally. This is also fee-splitting.
These examples illustrate how lawyers can split fees when they work together on a case or when one lawyer refers a case to another. However, it is important to follow the ethics rules of each state to avoid any unethical practices.