What must be true to proceed with a fee-sharing arrangement that involves a non-lawyer?

• A. It is generally prohibited because it undermines independence
• B. It is allowed if disclosed to the client
• C. It is allowed if the non-lawyer is a family member
• D. It is required to obtain court approval

Answer: (A)

The main idea being tested is that fee sharing with a non-lawyer threatens a lawyer’s independence. When a non-lawyer has a financial stake in the legal services, that stake can unduly influence the lawyer’s professional judgment about which claims to pursue, how to handle the case, or what settlement to accept. To preserve objective, unbiased legal representation, the rules generally prohibit such fee-sharing arrangements. Therefore, simply disclosing the arrangement, having the non-lawyer be a family member, or seeking court approval does not cure the problem. The rule recognizes that the risk to independence is fundamental, and only very narrow exceptions apply. Hence, the best answer is that fee sharing with a non-lawyer is generally prohibited because it undermines independence.