Attorney Referral Fees in Michigan (MRPC 1.5(e))

Unlike the ABA model, Michigan's MRPC 1.5(e) does not require the referring lawyer to perform proportional work or to assume joint responsibility. A division of a fee between lawyers not in the same firm may be made if the client is advised of the participation of all the lawyers and does not object, and the total fee is reasonable.

In practice this means a pure referral fee is permitted in Michigan: you can refer a matter and share in the fee even if you do no further work, provided the client is informed and does not object and the overall fee is reasonable.

First, although Michigan does not require a written agreement, you should always put referral terms in writing — Michigan courts have addressed disputes over unwritten referral deals, and a clear agreement protects everyone.

Second, recent Michigan guidance indicates a referral-fee agreement is valid under MRPC 1.5(e) only where there is an attorney-client relationship between the referring attorney and the client. Treat the client as your client at the point of referral, not a stranger you merely pointed elsewhere.

This article is general information for attorneys, not legal or ethics advice. Rules change and vary by matter; confirm the current rule and any bar ethics opinions before entering a fee-division agreement.

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