The New Jersey Supreme Court recently ruled that New Jersey certified attorneys are allowed to pay referral fees to attorneys in other states, even if those attorneys are not licensed to practice law in New Jersey.
The ruling came in response to Opinion 745 of the Supreme Court Advisory Committee on Professional Ethics (ACPE).
The Supreme Court reviewed the ACPE opinion and disagreed.
The court’s ruling clarifies Rule 1:39-6(d), which allows certified attorneys to pay referral fees.
Key points of the ruling
Referral fees are payments made for a recommendation to hire an attorney.
New Jersey Rules of Professional Conduct (RPC) generally bar attorneys from paying referral fees, with limited exceptions.
Rule 1:39-6(d) creates an exception to the general rule for certified attorneys.
The plain language of Rule 1:39-6(d) makes clear that:
Certified attorneys can pay referral fees.
Referral fees can be paid without regard to any legal work performed.
The referral fee can be paid out of, but cannot exceed, the certified attorney’s reasonable fee for legal services rendered.
The court applies basic principles of statutory construction to interpret court rules.
When interpreting a court rule, the court begins with the rules' plain language and gives the words their ordinary meaning.
If a court rule's text is ambiguous, the court can use extrinsic evidence, including committee reports, for guidance.
In re Opinion No. 745 of the Supreme Court Advisory Committee on Professional Ethics (A-44/45/46/47/48/49/50/51/52-23) (089278)
Recommended Citation: Gelman, Jon., NJ High Court OKs Referral Fees (03/15/2025) https://workers-compensation.blogspot.com/2025/03/nj-high-court-oks-referral-fees.html
ORDER NOW
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*Jon L. Gelman of Wayne, NJ, is the author of NJ Workers’ Compensation Law (West-Thomson-Reuters) and co-author of the national treatise Modern Workers’ Compensation Law (West-Thomson-Reuters). For over five decades, the Law Offices of Jon Gelman 1.973.696.7900
jon@gelmans.com has represented injured workers and their families who have suffered occupational illnesses and diseases.
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