The appellant, a lawyer, sought payment of a 15 percent referral fee from the respondent lawyer in relation to a personal injury judgment obtained for a client whom the appellant had referred.
The motion judge granted summary judgment dismissing the appellant's action.
On appeal, the appellant argued that the respondent breached contractual obligations of good faith by failing to obtain the client's consent to the referral fee at the time of retainer.
The Court of Appeal upheld the motion judge's decision, finding that the referral fee arrangement did not comply with Rule 2.08(7) of the Rules of Professional Conduct, which requires that referral fees be reasonable, not increase the total fee to the client, and that the client be informed and consent.
The client did not consent to the amount claimed and would only consent to a lesser amount, which was paid and found reasonable.