Under the Model Rule governing the professional independence of a lawyer, “a lawyer or law firm may not share legal fees with a nonlawyer.” Which of the following is NOT an exception to this Rule?
Explanation
Answer: A - A lawyer or law firm hires a paralegal and agrees to pay the paralegal a salary or wage in return for the work. “A lawyer or law firm shall not share legal fees with a nonlawyer,” except for (1) an agreement by a lawyer or law firm, after the death of a lawyer, to pay the lawyer’s estate or a specified non-lawyer over time; (2) a lawyer who purchases the practice of a deceased, disabled, or disappeared lawyer may pay the deceased lawyer’s estate or other representative; (3) a lawyer or law firm may include non-lawyer employees in a compensation or retirement plan; and (4) an agreement to share court-awarded legal fees with a non-profit organization that employed the lawyer in the matter. Model Rule 5.4(a). Answer A is the best choice because it is not listed among the four exceptions to Rule 5.4(a). When a lawyer or law firm hires a paralegal, the paralegal is an employee and the paralegal’s compensation is not considered fee-splitting.
