MRPC Rule 5.4

(a) A lawyer or law firm shall not share legal fees with a nonlawyer, except that:

(1) an agreement by a lawyer with the lawyer’ s firm, partner, or associate may provide for

the payment of money, over a reasonable period of time after the lawyer’s death, to the

lawyer’s estate, or to one or more specified persons;

(2) a lawyer who purchases the practice of a deceased, disabled, or disappeared lawyer

may, pursuant to the provisions of Rule 1.17, pay to the estate or other representative of

that lawyer the agreed-upon purchase price;

(3) a lawyer or law firm may include nonlawyer employees in a compensation or retirement

plan, even though the plan is based in whole or in part on a profit-sharing arrangement;

and

(4) a lawyer may share court-awarded legal fees with a nonprofit organization that

employed, retained, or recommended employment of the lawyer in the matter.

(b) A lawyer shall not form a partnership with a nonlawyer if any of the activities of the

partnership consist of the practice of law.

(c) A lawyer shall not permit a person who recommends, employs, or pays the lawyer to render

legal services for another to direct or regulate the lawyer’ s professional judgment in

rendering such legal services.

(d) A lawyer shall not practice with or in the form of a professional corporation or association

authorized to practice law for a profit, if:

(1) a nonlawyer owns any interest therein, except that a fiduciary representative of the

estate of a lawyer may hold the stock or interest of the lawyer for a reasonable time

during administration;

Michigan Rules of Professional Conduct 72 Updated with MSC order(s)

(2) a nonlawyer is a corporate director or officer thereof, or one who occupies a position of

similar responsibility in any form of association other than a corporation; or

(3) a nonlawyer has the right to direct or control the professional judgment of a lawyer.

The provisions of this rule express traditional limitations on sharing fees. These limitations are

to protect the lawyer’ s professional independence of judgment. Where someone other than the

client pays the lawyer’s fee or salary, or recommends employment of the lawyer, that

arrangement does not modify the lawyer’s obligation to the client. As stated in paragraph (c),

such arrangements should not interfere with the lawyer’s professional judgment.

This rule also expresses traditional limitations on permitting a third party to direct or regulate the

lawyer’s professional judgment in rendering legal services to another. See also Rule 1.8(f)

(lawyer may accept compensation from a third party as long as there is no interference with the

lawyer’s independent professional judgment and the client gives consent.