We were referred a case which we worked up for trial with an understanding that the referring attorney would receive a 1/3 referral fee. We now are bringing in a third firm in as trial counsel. We let them know it was a referral and a portion of the fee is going to the referring attorney. They suggested a 50/50 fee split on the verdict. Would you assume this suggestion is that we split the remaining fee after the referring attorney is paid or that the referral fee comes from our part?

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I wouldn’t assume anything and would ask them to clarify which of the two they meant. The way you wrote out the scenario I could see it going either way.

Which means there hasn’t been a meeting of the minds.

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I agree. I would just ask. You don't want to end up being wrong in the long run.

As someone who takes on the role of trial counsel. They mean 50/50 between you and them of the verdict fee. The referral fee is your problem. That comes out of your 50%.

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I think it’s ridiculous that attorneys even charge 1/3 referral fees. The firm sending the case over has zero risk and all reward. I understand they are likely expending large amounts of $$ on advertising, just think 1/3 for doing no work is too high.

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Honestly if I were you I would go back to referring attorneys and renegotiate now that things have changed and you brought on co-counsel.

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You can only split that which is yours to split. Everyone gets a third of the “attorney” portion of the verdict.

But the above, make sure the contract is much clearer than what you wrote in the question. Logic says it is a 3 way split, but poorly worded contracts don’t always track with logic.

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