Practice Quiz

Paralegal

Category - Ethics

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A sole practitioner has a sign on her door stating that she practices general business law, personal injury, and family law. The attorney employs two paralegals and a secretary. The attorney personally handles all general business law cases, but assigns all of the personal injury cases and family law cases to one of the paralegals. The attorney fully and appropriately supervises all work performed by the paralegals and pays them a salary, plus fifty percent of all fees received from the cases assigned to them. Is this arrangement permissible?

  1. Yes, because employees of a law firm may share the fees generated by the firm.
  2. Yes, because the attorney fully and appropriately supervises all work performed by the paralegals.
  3. No, because attorneys are prohibited from splitting fees with non-attorneys.
  4. No, because the attorney is facilitating the unauthorized practice of law by the paralegals.
Explanation

Answer: C - No, because attorneys are prohibited from splitting fees with non-attorneys. “A lawyer or law firm shall not share legal fees with a nonlawyer.” Model Rule 5.4(a). Although Rule 5.4(a) lists exceptions, none of those exceptions apply here. Answer C is the best choice because the attorney is splitting the fees with non-attorneys. Answer B could be a good choice if not for the violation of the non-attorney fee-splitting rule. Answer D is not the best choice because, if fully and appropriately supervised, highly trained and experienced paralegals can provide case management services and hearing and trial preparation for an attorney.

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