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May a law firm bill the client more for the work of a contract lawyer than the firm pays that lawyer?

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May a law firm bill the client more for the work of a contract lawyer than the firm pays that lawyer?

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Only if the contract lawyer is “in” the firm, or if all fee-splitting and referral requirements of Rule 1.04 (f) are met. Opinion 577 (2008) of the Texas Supreme Court Professional Ethics Committee provides that “Firm lawyers,” whether partners, shareholders, associates, or otherwise named, are not covered by the fee-splitting rules contained in 1.04 (f). Hence, there is no restriction on the firm charging more for the attorney’s time than it paid him or her, except for the general rule that no fee charged by any lawyer or firm can be illegal or unconscionable in amount. However, Under the Texas Disciplinary Rules of Professional Conduct, specifically Rule 1.04, the matter must be analyzed differently when a firm seeks to mark-up the fees of a “non-firm lawyer.” Under those circumstances, all requirements of Rule 1.04 (f) with respect to referral fees and other fee-splitting arrangements must be met. This includes “proportionality of fees to services performed or joint responsibility f

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