'Confusion Where Previously There Was Clarity': NJ Supreme Court Should Void Referral Fee Ethics Opinion
Opinion 745 does not serve the best interests of the public and runs counter to the court’s direction.
November 22, 2024 at 10:56 AM
4 minute read
In March, the Advisory Committee on Professional Ethics (ACPE) published Opinion 745 which bans certified civil trial attorneys from paying a referral fee to out-of-state lawyers. It caused such a negative hubbub among lawyers and organized legal organizations, including the New Jersey State Bar Association, that a petition for review and determination by the court that certified attorneys may pay, and out-of-state attorneys may accept, referral fees as contemplated by the plain language of R.1:39-6 was filed with the Supreme Court by the state bar, the New Jersey Association for Justice and the American Board of Trial Advocates. In addition, county bar associations sent letters opposing implementation of this ACPE opinion. The court granted the petition and oral argument was heard on Oct. 22.
The committee’s opinion was that a referral fee is considered payment for legal services rendered. That erroneous concept is the foundation for the committee’s conclusion and direction to certified trial attorneys. The opinion rests solely on the committee’s belief that referral fees are "payment for legal services rendered" and, therefore, may only be paid to an attorney eligible to practice law in New Jersey.
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