In a significant ruling on February 18, 2025, the New Jersey Supreme Court determined that the state’s Rules of Court permit certified attorneys to pay referral fees to lawyers in other states, even if those lawyers are not licensed to practice in New Jersey. The decision, made in In re Opinion No. 745 of the Supreme Court Advisory Committee on Professional Ethics (089278), marks a key development in the interpretation of professional conduct standards within the state.
The Court’s ruling clarified that while the payment of referral fees between attorneys has traditionally been regulated within state boundaries, New Jersey’s ethical guidelines can extend to include out-of-state lawyers. This opens the door for greater collaboration across state lines, provided the referring attorney and the recipient follow the established ethical requirements of their respective jurisdictions.
The decision is expected to have a substantial impact on how legal professionals handle referrals and establish relationships with attorneys outside New Jersey. The ruling provides clarity on the legality of such practices, aligning with modern legal business practices where interstate cooperation is increasingly common.
