Lawyer Denied Referral Fee Over Lack of Client Consent

A Pennsylvania lawyer may not collect a referral fee in a New Jersey lawsuit that yielded a $1.9 million verdict because the clients were never told about any fee-sharing arrangement, as New Jersey's ethical rules require, a federal judge has ruled. The judge said it was undisputed that in a discussion of a construction-accident lawsuit, the attorney never told his neighbors that he expected to receive one-third of any fee earned by the lawyers at Parker McCay if the neighbors decided to retain that firm.

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