Referral fees
25 Referral fees
A legal practitioner has a duty not to receive consideration for referring a claimant who is represented by the legal practitioner to a person for the purposes of a service being provided in respect of the claimant’s claim.
A legal practitioner is taken to receive consideration if a close associate of the legal practitioner receives the consideration.
A legal practitioner has a duty not to give consideration for the referral of a person to the legal practitioner for the purposes of the legal practitioner representing the person in relation to a claim.
A legal practitioner is taken to give consideration if a close associate of the legal practitioner gives the consideration.
In this clause—
close associate of a legal practitioner means the following—
an employer of the legal practitioner, including, if the employer is a corporation, a director of the corporation,
a partner of the legal practitioner,
an employee or agent of the legal practitioner or of a person referred to in paragraph (a) or (b),
a family member of the legal practitioner.
consideration includes a fee or any other benefit but does not include hospitality that is reasonable in the circumstances.
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