Q. I sometimes refer clients to another law firm. Can I be compensated by that firm for the referral?A. Rule 1.5(e) states that a division of fees between lawyers who are not in the same firm can only be made if the division of fees is in proportion to the work done by each lawyer, the client agrees in writing, and the fee is reasonable. If the primary service performed is the referral, the fee can only be divided if each lawyer assumes financial responsibility for the representation, the fee is reasonable, and the client consents in writing. See also ISBA Professional Conduct Advisory Opinion 90-18 and Donald W. Fohrman & Assocs, Ltd. V. Marc D. Alberts, P.C.,2014 IL App(1st) 123351 (Ill. App., 2014).ISBA members can browse past ISBA Ethics Opinions, access our Ethics Hotline, and other resources on the ISBA Ethics Page.Disclaimer. These questions are representative of calls received on the ISBA’s ethics hotline. The information provided below is meant as an educational tool to highlight potentially applicable Illinois RPC or other ethics resources that might help the lawyer answer the question posed. The information provided isn’t legal advice. Because every situation is different, often complex, and the law is constantly evolving, you shouldn’t rely upon this general information without conducting your own research.
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May 7, 2014 |
Practice News
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May 7, 2014 |
Practice News
Asked and AnsweredBy John W. Olmstead, MBA, Ph.D, CMCQ. I am the managing partner of an 8 attorney firm in Carbondale, Illinois. Recently I was talking with the managing partner of a firm in the area and we were discussing overhead ratios and we seemed to have different definitions of overhead and I am wondering if we were trying to compare apples to oranges. Can you share your thoughts?A. I consider overhead to be the operating cost required to support the producers in the firm. This is a different statistic than expenses. Typically in a law firm overhead is all expenses except for attorney salaries (associate and partners) and benefits. Often overhead is used as various benchmark surveys. However, when determining net income or profit (the profit pool) expenses would include associate salaries and associate and partner benefits. In a professional corporation where officer salaries are expensed we typically add shareholder salaries back to the net income figure to determine the profit pool for benchmarking purposes.Click here for our blog on financial managementClick here for articles on other topics
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May 6, 2014
Here is the Tellers report for the 2014 ISBA election:CONTESTED RACES (winners in bold)For Third Vice-President – 1 to be elected Russell W. Hartigan 2,103 David B. Sosin 1,687For Board of Governors – Under Age 37 – Cook – 1 to be electedDennis Lynch 750Anna P. Krolikowska 8695 comments (Most recent May 13, 2014)
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May 6, 2014 |
CLE
Stay in touch with the recent statutory, regulatory, and case law changes concerning Illinois state and local taxes! State and local tax issues are regularly updated, and it is important that Illinois attorneys are aware of these changes. Join us in Chicago or via live webcaston May 22ndto get the information you need regarding advancements in statutory, regulatory and case law concerning Illinois state and local taxes with this informative half-day seminar. State and local tax attorneys – or any attorney with an interest in state tax practicing in law firms, industry or governmental agencies – with intermediate to advanced practice levels who attend this program will better understand: the Illinois Department of Revenue’s recent updates concerning policy, statutory and regulatory policy; the recent developments and changes in local and county taxing bodies, including rules/regulations and operations; how recent modifications and changes may affect property tax law; legislative developments in income, sales and other Illinois taxes; and a brief overview of recent Illinois tax court cases.The seminar is presented by the ISBA State and Local Tax Section and qualifies for 3.50 hours MCLE credit.Click here for more information and to register.
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May 5, 2014 |
ISBA News | Member Services
The Illinois State Bar Association’s Lawyer Finder Service provides referrals to local lawyers Mondays through Fridays. The Service makes referrals in a number of areas of law. For the month of April 2014, ISBA helped people in need of legal services find lawyers in the following areas:Here are the results for April 2014:
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The Young Lawyers Task Force hosted approximately 40 third-year law students for a speed networking event on Thursday, May 1 at the Chicago Office.
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The ISBA Board of Governors hosted a reception on Thursday, May 1, to highlight the expansion of the Chicago Office.
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May 2, 2014 |
ISBA News
Joseph Hudson, a prosecutor in the Cook County State’s Attorney’s office, has received a Presidential Commendation from the Illinois State Bar Association for his extensive work on a complex case that involved a non-lawyer doing business on mechanics lien cases.The award was presented by ISBA President Paula H. Holderman during the organization’s Board of Governors meeting in Chicago on May 2.The case, which took five years to resolve, involved Steve Boucher, owner of Contractor’s Lien Services, who filed invalid liens against property owners and was charged with intimidating homeowners either to pay debts they didn’t owe or to overpay for debts incurred with contractors. Boucher hired lawyers to draft legal documents for the firm’s clients.The matter was brought to the attention of the ISBA Committee on the Unauthorized Practice of Law, which in turn worked with the State’s Attorney’s office and the Illinois Attorney General's office who brought a lawsuit against Boucher and his company, and sought a permanent injunction to prevent the defendant from engaging in selling mechanics lien filing and collections services in Illinois.A judge ruled that the case constituted the unauthorized practice of law and enjoined the plaintiff and his company from engaging in selling mechanics lien filing and collections services in Illinois.The text from Mr. Hudson's acceptance speech is available below:
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May 2, 2014 |
Practice News
The Supreme Court of Illinois announced Friday the appointment of longtime attorney M. Don Sheafor Jr. as Fayette County Resident Circuit Judge of the Fourth Judicial Circuit. He will fill the vacancy created by the appointment of Judge S. Gene Schwarm to the Fifth District Appellate Court.Mr. Sheafor, 59, currently is a partner with the law firm of Burnside, Johnston, Sheafor & Connor which traces its history in Vandalia to the past 100 years. Mr. Sheafor also served as State’s Attorney for Fayette County, having been appointed in 1983 and serving two full elected terms until 1992. Over the course of his career, Mr. Sheafor has practiced in nearly every area of civil and criminal law and has tried hundreds of cases.Mr. Sheafor is a graduate of Eastern Illinois University, and received his juris doctor from Thomas Cooley School of Law in Lansing Mich. He was licensed and admitted to the practice of law in Illinois 1981, when he joined the Fayette County State’s Attorney’s office as an assistant prosecutor. He was in private practice at Sheafor & Day in St. Elmo from 1992 to 1996 when he joined the Burnside, Johnston Sheafor and Connor law firm.Under the Illinois Constitution, the Supreme Court is given the authority to fill judicial vacancies by interim appointment until the next election cycle.
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May 1, 2014 |
ISBA News
ISBA President Paula H. Holderman interviews ABA Past President Laurel Bellows in Part 2 of a two-part interview. In this interview this discuss the ABAs Gender Equity Task Force and how gender bias impedes a law firm's goals of growth, talent development and profitability.