REFERRAL FEES. CBA Code (Newfoundland, Northwest Territories, Nunavut, Prince Edward Island)

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1 SCHEDULE H REFERRAL FEES CBA Code (Newfoundland, Northwest Territories, Nunavut, Prince Edward Island) CHAPTER XI FEES Commentary Sharing Fees with Non-lawyers 8. Any arrangement whereby the lawyer directly or indirectly shares, splits or divides fees with notaries public, law students, clerks or other non-lawyers who bring or refer business to the lawyer s office is improper and constitutes professional misconduct. It is also improper for the lawyer to give any financial or other reward to such persons for referring business. Alberta CHAPTER 5 ACCESSIBILITY AND ADVERTISEMENT OF LEGAL SERVICES RULES

2 6. A lawyer must not give anything of value to a person for recommending the lawyer s services or referring a client to the lawyer unless: a. the compensation represents direct and reasonable advertisement costs; or b. the compensation is given to an employee of the lawyer or other person hired by the lawyer to provide general marketing and public relations services, provided the compensation is not directly related to a specific client matter. British Columbia CHAPTER 9 - FEES Referral fees 2. A lawyer must not: a. pay any remuneration to a person, other than a member of the Law Society in good standing, in exchange for that person referring a client to the lawyer, or b. act for a client if, to the lawyer s knowledge, a person other than a member of the Law Society in good standing was paid any remuneration by the client in exchange for being referred to the lawyer. 3. A lawyer acting for a client who was referred to the lawyer by another lawyer or by a lawyer in another jurisdiction may pay that other lawyer remuneration for the referral only if, at the commencement of the retainer, the lawyer fully discloses the remuneration to the client and the client consents in writing to its payment. Sharing fees 6. A lawyer must not split, share or divide a client s fee with any person other than a member of the Law Society in good standing.

3 Hidden fees 8. A lawyer shall take no fee, reward, costs, commission, interest, rebate, agency or forwarding allowance or other compensation whatsoever related to the lawyer s professional employment from anyone other than the client or the person who is paying part or all of the lawyer s fee on behalf of the client, without full disclosure to and consent of the client or that other person.

4 New Brunswick PART E PECUNIARY RELATIONS WITH A CLIENT 1. FEES No division of fees for legal services is proper, except with another lawyer, based on a division of service or responsibility. It is improper for a lawyer, when acting for a client, to accept compensation, commissions, rebates or other advantages from third parties unless the lawyer obtains the consent of the client after full disclosure. Nova Scotia CHAPTER 12 - FEES Guiding Principles Hidden fees 12.6 The fiduciary aspect of the relationship that exists between lawyer and client requires full disclosure of all financial matters between them and prohibits a lawyer from accepting any hidden fees No fee, reward, costs, commission, interest, rebate, agency or forwarding allowance or other compensation whatsoever related to the professional employment may be taken by a lawyer from anyone other than a client without full disclosure to and consent of the client.

5 12.8 Where a lawyer s fees are being paid by someone other than the client, such as a legal aid agency, a borrower or a personal representative, the consent of such other person shall be required. With respect to disbursements, only bona fide specified payments to others and charges customarily made without express permission, such as photocopying, delivery charges, facsimile transmissions, long distance telephone charges, may be included. If a lawyer is financially interested in the party to whom the disbursements are made, such as an investigating, brokerage or copying agency, the lawyer shall expressly disclose this fact to the client. Sharing fees with non-lawyers 12.9 Any arrangement whereby a lawyer, other than by paying a salary or bonus, directly or indirectly shares, splits or divides fees with non-lawyers including law students and clerks who bring or refer business to the lawyer s office is improper and constitutes professional misconduct. Also, a lawyer has a duty not to give any financial or other reward to parties in consideration for referring business A lawyer has a duty not to enter into a lease or other arrangement whereby a landlord or other person directly or indirectly shares in the fees or revenues generated by the law practice. Ontario RULE 2 RELATIONSHIP TO CLIENTS 2.08 FEES AND DISBURSEMENTS Division of Fees and Referral Fees (7) Where the client consents, fees for a matter may be divided between lawyers who are not in the same law firm, provided that the fees are divided in proportion to the work done and the responsibilities assumed.

6 (8) Where a lawyer refers a matter to another lawyer because of the expertise and ability of the other lawyer to handle the matter and the referral was not made because of a conflict of interest, the referring lawyer may accept and the other lawyer may pay a referral fee provided that a. the fee is reasonable and does not increase the total amount of the fee charged to the client, and b. the client is informed and consents. (9) A lawyer shall not a. directly or indirectly share, split, or divide his or her fees with any person who is not a lawyer, or b. give any financial or other reward to any person who is not a lawyer for the referral of clients or client matters. Exception for Multi-discipline Practices and Interprovincial and International Law Firms (10) Subrule (9) does not apply to 1. multi-discipline practices of lawyer and non-lawyer partners where the partnership agreement provides for the sharing of fees, cash flows or profits among members of the firm, and 2. sharing of fees, cash flows or profits by lawyers who are a. members of an interprovincial law firm, or b. members of a law partnership of Ontario and non-canadian lawyers who otherwise comply with this rule.

7 Barreau du Québec Code of Ethics of Advocates DIVISION III DUTIES AND OBLIGATIONS TOWARDS THE CLIENT 5. Independence and impartiality The advocate shall refrain from receiving, in addition to the remuneration to which he is entitled, any benefit, discount or commission relating to the practice of his profession. He shall not, in addition, pay, offer to pay nor undertake to pay any benefit, discount or commission The advocate shall refrain from sharing his fees or remitting them to, or renouncing them in advance in favour of any person who is not a member of a bar. DIVISION IV DUTIES AND OBLIGATIONS TOWARDS THE PROFESSION 2. Derogatory acts In addition to the derogatory acts referred to in sections 57 and 58 of the Professional Code (R.S.Q., c. C-26), the following are derogatory to the dignity of the profession of advocate: (o) retaining the services of a bailiff in paying him a salary to have him act in that capacity or sharing with him the fees or other costs that one or the other is entitled to claim for his services;

8 Code de déontologie des avocats SECTION III - DEVOIRS ET OBLIGATIONS ENVERS LE CLIENT 5. Indépendance et désintéressement L'avocat doit s'abstenir de recevoir, en plus de la rémunération à laquelle il a droit, tout avantage, ristourne ou commission relatif à l'exercice de sa profession. De même, il ne doit verser, offrir de verser, ni s'engager à verser aucun avantage, ristourne ou commission L'avocat doit s'abstenir de partager ses honoraires avec une personne qui n'est pas membre d'un barreau ou de les lui remettre ou d'y renoncer à l'avance en sa faveur. SECTION IV - DEVOIRS ET OBLIGATIONS ENVERS LA PROFESSION 2. Actes dérogatoires En outre des actes dérogatoires mentionnés aux articles 57 et 58 du Code des professions (L.R.Q., c. C-26), est dérogatoire à la dignité de la profession le fait pour un avocat:...o) de retenir les services d'un huissier en lui payant un salaire pour qu'il agisse à ce titre, ou de partager avec lui les honoraires ou autres frais que l'un ou l'autre est en droit de réclamer pour ses services; Chambre des notaires Code of Ethics of Notaries DIVISION III - DUTIES AND OBLIGATIONS TOWARDS CLIENTS 4. Independence and Impartiality A notary must not share his fees with a person who is not a notary or remit such fees to him. R.R.Q., 1981, c. N-2, r. 3, s A notary shall share his fees with a colleague only to the extent that such sharing corresponds to a distribution of services and responsibilities Save for the remuneration to which he is entitled, a notary shall not pay or receive any rebate or commission relative to the practice of his profession.

9 Code de déontologie des notaires SECTION III DEVOIRS ET OBLIGATIONS ENVERS LE CLIENT 4. Indépendance et désintéressement Un notaire doit s abstenir de partager ses honoraires avec une personne qui n est pas notaire ou de les lui remettre Un notaire ne peut partager ses honoraires avec un confrère que dans la mesure où ce partage correspond à une répartition des services et des responsabilités Un notaire doit, à l exception de la rémunération à laquelle il a droit, s abstenir de verser ou de recevoir toute ristourne ou commission relative à l exercice de sa profession. Yukon PART ONE LAWYER AND CLIENT 9. No lawyer shall enter into an arrangement with any other person or corporation which involves that person or corporation directing clients to the lawyer in return for a portion of the fee paid by the client to the lawyer or in return for any other financial or other reward, direct or indirect. Manitoba, Saskatchewan No specific rule.