74-2.

• Case Date: May 15, 1974
• Court: Alaska

Alaska Ethics Opinion 1974. 74-2. Ethics Opinion No. 74-2Propriety of "Referral Fees."The Committee has been requested to give its opinion on the use of "referral fees" where a case is referred to an Alaskan attorney by an attorney from another jurisdiction. Specifically, the question pertains to a situation where a commercial collection matter is referred to an Alaskan attorney by an attorney from another jurisdiction. Substantially all work on the matter is performed by the Alaskan attorney, with only routine matters involving the client's signature being performed by the attorney from another jurisdiction. The Alaskan attorney's compensation is calculated as a percentage of the total amount collected, and after collection efforts have been completed, the outside attorney requests a "referral fee" based on a percentage of the Alaskan attorney's fee. The Code of Professional Responsibility, DR 2-107, seems to cover the matter adequately. Particularly DR 2-107 (A)(2) which provides that a lawyer shall not divide a fee with another lawyer, unless "the division is made in proportion to the services performed and responsibility assumed by each." DR 2-107 (A)(2) is a direct successor to Canon 34 of the Canons of Professional Ethics, with the exception that it states the two elements for consideration (division of services and responsibility) in the conjunctive rather than the...