Rule 5.4 - PROFESSIONAL INDEPENDENCE OF A LAWYER(a) A lawyer or law firm shall not share legal fees with a nonlawyer, except that:(1) an agreement by a lawyer with the lawyer's firm or firm members may provide for the payment of money, over a reasonable period of time after the lawyer's death, to the lawyer's estate or to one or more specified persons.(2) a lawyer who purchases the practice of a deceased, disabled, or disappeared lawyer may, pursuant to the provisions of Rule 1.17, pay to the estate or other representative of that lawyer the agreed-upon purchase price.(3) a lawyer or law firm may include nonlawyer employees in a compensation or retirement plan, even though the plan is based in whole or in part on a profit-sharing arrangement.(4) a lawyer may share legal fees awarded by a tribunal with a nonprofit organization that employed, retained or recommended employment of the lawyer in the matter; and(5) a lawyer may pay the usual charges of a bar-operated not-for-profit lawyer referral service, including fees calculated as a percentage of legal fees received by the lawyer from a referral.(b) A lawyer shall not form a partnership with a nonlawyer if any of the activities of the partnership consist of the practice of law.(c) A lawyer shall not permit a person who recommends, employs, or pays the lawyer to render legal services for another to direct or regulate the lawyer's professional judgment in rendering such legal services.(d) A lawyer shall not practice with or in the form of a professional corporation or association authorized to practice law for a profit, if:(1) a nonlawyer owns any interest therein, except that a fiduciary representative of the estate of a lawyer may hold the stock or interest of the lawyer for a reasonable time during administration;(2) a nonlawyer is a corporate director or officer thereof or occupies the position of similar responsibility in any form of association other than a corporation, except as authorized by law; or(3) a nonlawyer has the right to direct or control the professional judgment of a lawyer.(e) A lawyer shall not refer a client to a nonlawyer with the understanding that the lawyer will receive a fee, commission or anything of value in exchange for the referral, but a lawyer may accept gifts in the ordinary course of social or business hospitality.Or. State. Bar. R. Regul. and Polic. 5.4
Adopted 1/1/2005 Amended 1/1/2013: Paragraph (a)(5) added. Amended 2/1/2022: Phrase "court-awarded" deleted from paragraph (a)(4). Phrase "awarded by a tribunal" added to paragraph (a)(4). Amended 3/1/2022: Phrase "sponsored or" deleted from paragraph (a)(5).Defined Terms (see Rule 1.0):
"Firm"
"Law firm"
"Matter"
"Partner"
"Reasonable"
Comparison to Oregon Code
Paragraph (a)(1) is the same as DR 3-102(A)(1). Paragraph (a)(2) is similar to DR 3-102(A)(2), except that it addresses the purchase of a deceased, disabled or departed lawyer's practice and payment of an agreed price, rather than only authorizing reasonable compensation for services rendered by a deceased lawyer. Paragraph (a)(3) is identical to DR 3-102(A)(3). Paragraphs (a)(4) and 9a)(5) have no counterpart in the Oregon Code.
Paragraph (b) is identical to DR 3-103.
Paragraph (c) is identical to DR 5-108(B).
Paragraph (d) is essentially identical to DR 5-108(D).
Paragraph (e) is the same as DR 2-105, approved by the Supreme Court in April 2003.