MBE Rules · Professional Responsibility
Fee Division Among Lawyers
Cal. Rule 1.5.1
The rule
Lawyers not in the same firm may divide fees without proportionality to work — unlike the ABA — if they contract in writing, the client consents in writing after full disclosure, and the total fee is not increased.
In plain English
Lawyers from different firms can share fees as long as they have a written agreement, the client agrees in writing after being fully informed, and the total fee charged to the client does not go up. This is different from the ABA rule, which requires that fees be divided based on the work done by each lawyer.
Worked example
Lawyer A and Lawyer B, who work at different firms, agree in writing to split a $10,000 fee for a case. They inform their client about the fee division and the client consents in writing, understanding that the total fee remains unchanged. This arrangement is valid and both lawyers can share the fee as agreed.
Memory hook
Different firms can share fees if they write it down and keep the total the same!
The trap
Students often forget that the client must provide written consent after full disclosure, leading them to overlook the importance of client communication in fee division.
How examiners test it
Questions typically present a scenario involving fee sharing between lawyers from different firms, testing whether the requirements for valid fee division have been met.
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More Professional Responsibility rules
- Duty of Confidentiality · Cal. Bus. & Prof. Code § 6068(e); Rule 1.6
- Client Trust Account — IOLTA · Cal. Rules of Prof. Conduct 1.15
- Duty to Report Misconduct · Cal. Rules of Prof. Conduct 8.3
- Unconscionable Fees · Cal. Rule 1.5
- Compensation from Third Parties · Cal. Rule 1.8.6
- Threatening Prosecution · Cal. Rule 3.10