New Jersey has strict rules with respect to fee sharing and referral fees in legal cases. In In re Opinion No. 745 of the Supreme Court Advisory Committee on Professional Ethics the rules were relaxed a bit.
As a threshold matter, Rule 1:39-6(d) sets forth exceptions to the general rule that New Jersey lawyers may not pay referral fees. Certified attorneys can pay referral fees (but not certified matrimonial attorneys). Also, the referral fee can be paid out of, but cannot exceed, the certified attorney’s reasonable fee for legal services rendered. Referral fees can be paid if the referring attorney actually works on the file. Rule of Professional Conduct (RPC) 1.5(e) states in part that legal fees can be divided between lawyers who do not practice in the same firm if (1) the division is proportionate to the services each lawyer performs or (2) the lawyers assume joint responsibility for the representation in a written agreement with the client.
However, RPC 1.5(e) does not relate to the attorney certification program. Ethics Opinion 745 reviewed the rule and concluded that to receive a referral fee, the referring lawyer needed to be licensed and eligible to practice law in New Jersey. Opinion 745 also concluded that certified attorneys could not pay referral fees to lawyers who had to withdraw from a case because of a conflict of interest, although the referring lawyer would be entitled to be paid for actual services rendered.
Several organizations petitioned the NJ Supreme Court for review of Opinion 745, which the Court granted. The Court held that the NJ Rules allow certified attorneys to pay referral fees to lawyers in other states even if they are not licensed here. The Court further held that the payment of referral fees does not raise concerns about the unauthorized practice of law. The Court vacated Opinion 745.
So what does this mean? If you refer a case to a Certified Civil Trial, Criminal Trial, Municipal Court, or Workers’ Compensation attorney you can receive a referral fee. While there is no obligation that they pay a fee, in my experience, they do.
To be certified, attorneys must:
- be a member in good standing of the New Jersey Bar for at least five years
- take a specific number of continuing legal education courses in the three years prior to filing an application
- demonstrate substantial involvement in preparation of litigated matters
- demonstrate an unblemished reputation by submitting a list of attorneys and judges who will attest to the applicant's character and ability
- pass a written examination covering various aspects of practice in the designated specialty.
In my view, when you make a referral to a certified lawyer, you have confidence that you are referring to a highly experienced and vetted lawyer. If you are out of state and do not personally know an attorney in NJ, one of the qualifications you should look for is if the attorney is certified.
Amy was (am, depending on when you read this) a Certified Matrimonial Law attorney from 2010-2025. I allowed my certification to lapse since I no longer actively litigate in the trial courts of New Jersey. If you are looking to make a referral in NJ and need guidance on who to select, feel free to reach out to me for assistance.
