When referral fees are mentioned on our web site, we wish to insist on several important points. The term "referral fee" means a division of a legal fee between lawyers who are not in the same firm. Any such referral fee or divided fee is subject to strict ethical requirements.
 1. The Law Offices of Gary L. Wolfstone is a Seattle, Washington law firm with only one office. Gary Wolfstone is an active member of the Washington State Bar Association. Mr. Wolfstone is bound by and agrees to comply with the Rules of Professional Conduct (referred to as the RPC) as published by our state bar association. The provisions of RPC 1.5 (Fees) are reproduced in full hereinbelow, and we pledge to abide by and comply with all Washington laws and all Rules of Professional Conduct as published by our state bar association.
The RPC applies to all legal fees generally and deals in subsection (e) with divided fees specifically, as follows:
RULE 1.5 FEES
(a) A lawyer's fee shall be reasonable. The factors to be considered in determining the reasonableness of a fee include the following:
(1) The time and labor required, the novelty and difficulty of the questions involved, the skill requisite to perform the legal service properly and the terms of the fee agreement between the lawyer and client;
(2) The likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer;
(3) The fee customarily charged in the locality for similar legal services;
(4) The amount involved in the matter on which legal services are rendered and the results obtained;
(5) The time limitations imposed by the client or by the circumstances;
(6) The nature and length of the professional relationship with the client;
(7) The experience, reputation, and ability of the lawyer or lawyers performing the services; and
(8) Whether the fee agreement or confirming writing demonstrates that the client had received a reasonable and fair disclosure of material elements of the fee agreement and of the lawyer's billing practices.
(b) When the lawyer has not regularly represented the client, or if the fee agreement is substantially different than that previously used bv the parties, the basis or rate of the fee or factors involved in determining the charges for legal services and the lawyer's billing practices shall be communicated to the client, preferably in writing, before or within a reasonable time after commencing the representation. Upon the request of the client in any matter, the lawyer shall communicate to the client in writing the basis or rate of the fee.
(c) A fee may be contingent on the outcome of the matter for which the service is rendered, except in a matter in which a contingent fee is prohibited by section (d) or other law.
(1) A contingent fee agreement shall be in writing and shall state the method by which the fee is to be determined, including the percentage or percentages that shall accrue to the lawyer in the event of settlement, trial or appeal, litigation and other expenses to be deducted from the recovery, and whether such expenses are to be deducted before or after the contingent fee is calculated. Upon conclusion of a contingent fee matter, the lawyer shall provide the client with a written statement stating the outcome of the matter and, if there is a recovery, showing the remittance to the client and the method of its determination.
(2) A contingent fee consisting of a percentage of the monetary amount recovered for a claimant, in which all or part of the recovery is to be paid in the future, shall be paid only (i) by applying the percentage to the amounts recovered as they are received by the client or (ii) by applying the percentage to the actual cost of the settlement or award to the defendant.
(d) A lawyer shall not enter into an arrangement for, charge, or collect:
(1) Any fee in a domestic relations matter, the payment or amount of which is contingent upon the securing of a dissolution or annulment of marriage or upon the amount of maintenance or support, or property settlement in lieu thereof (except in postdissolution proceedings); or
(2) A contingent fee for representing a defendant in a criminal case.
(e) A division of fee between lanvyers who are not in the same firm may be made only if:
(1) The division is between the lawyer and a duly authorized lawyer referral service of either the Washington State Bar Association or of one of the county bar associations of this state; or
(2) The division is in proportion to the services provided by each lawyer or, by written agreement with the client, each lawyer assumes joint responsibility for the representation; the client is advised of and does not object to the participation of all the lawyers involved; and the total fee is reasonable.
[Amended effective September 1, 1990; amendment to RPC(c)(2) effective September 18, 1990, suspended September 18, 1990; suspension lifted December 12 1990.]
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