Forwarding Fee

Forwarding Fee

A payment of money made by one attorney who receives a client to another attorney who referred the client.

The Code of Professional Responsibility, which has been established by the American Bar Association to regulate the professional conduct of attorneys, proscribes the payment of forwarding fees—sometimes called referral fees—to an attorney who has merely secured the employment of another attorney without rendering any services or assuming any responsibility to the client in the matter. An apportionment of reasonable fees between attorneys is proper only when the client is cognizant of, and consents to, this arrangement, and when the allocation is in proportion to the services rendered and the responsibility assumed by each attorney.

The Code of Professional Responsibility has been adopted by many state bar associations. If an attorney accepts a forwarding fee without providing any services, or undertaking any responsibility, the bar association may institute disciplinary proceedings against the individual for his or her unethical behavior.

References in periodicals archive ?
Members' local phone companies may also charge a one-time setup fee and a monthly call forwarding fee.
1 million in contingent forwarding fees paid for agency and legal outsourced collections and an increase of $0.
Impacted customers to receive waiver of late fees, overage charges, roaming and call forwarding fees, and renewal extension for prepaid services
These costs included additional legal and forwarding fees as a result of the increase in the use of our attorney network.
Sprint to Waive Late Fees, Overage Charges, Roaming Fees, Call Forwarding Fees for Residents Affected by Hurricane Isaac (September 05, 2012 04:26 PM) Source: Sprint
To assist the residents of the Gulf Coast region, in the aftermath of Hurricane Isaac, Sprint (NYSE: S) is proactively waiving late fees; overage charges for voice, text and data; roaming fees; and call forwarding fees for Sprint services used by impacted customers between Aug.