A sample fee sharing agreement between attorneys is a legal document that outlines how attorneys share fees they earn from clients they work with together. The agreement provides a clear understanding between the attorneys involved of how much each will receive and outlines the terms and conditions under which the fees will be shared.
The agreement typically identifies the attorneys involved and the scope of work expected of each party. It also specifies the percentage of the fee that each attorney will receive. The agreement further outlines when and how the fees will be distributed, including disbursements and expenses.
Before drafting a fee sharing agreement, lawyers must verify that it is ethical and legal, as it is prohibited in some jurisdictions. The agreement must comply with the American Bar Association (ABA) Model Rules of Professional Conduct, which regulate the sharing of fees between lawyers.
The agreement must be fair and reasonable to the client, and the fees should be proportional to the services provided. Without a fee sharing agreement, lawyers may potentially violate professional conduct rules and could lose their legal license.
The following are essential factors that should be included in a sample fee sharing agreement between attorneys:
1. Percentage Allocation: This specifies the proportion of the fee that each lawyer is entitled to receive. The agreement should clearly define the formula used to calculate each attorney`s share.
2. Scope of Work: The agreement must clearly outline the scope of work expected of each attorney. This could include responsibilities such as drafting documents, conducting research, or representing clients in court.
3. Confidentiality: The agreement should include clauses that protect confidential information and client privacy. It should be noted that confidentiality extends beyond the duration of the agreement.
4. Dispute Resolution: The agreement should provide for how disputes related to the fee sharing arrangement are resolved.
5. Termination: The agreement should describe the terms of termination and what happens to the fees earned up to that point.
In conclusion, fee sharing agreements help lawyers to collaborate effectively and navigate potential ethical and legal challenges. By carefully crafting and abiding by such agreements, attorneys can build strong professional relationships and ensure that their clients receive high-quality legal services.