1990 Illinois Rules of Professional Conduct
RULE 5.4 Professional Independence of a
Lawyer
[revisions to 1990 Rule are
indicated as follows: text deleted from the 1990 Rule is shown by
strikethrough;
additions to the 1990 Rule are shown in red]
(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 undertakes to complete
unfinished legal business of a deceased lawyer may pay to the estate of the
deceased lawyer that proportion of the total compensation which fairly
represents the services rendered by the deceased lawyer or may make payments
in accordance with Rule 1.17; and
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.
(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;
(2) a nonlawyer is a corporate director or officer
thereof, except that a nonlawyer may serve as secretary thereof if
such secretary performs only ministerial duties
or occupies the 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.
Adopted February 8, 1990, effective
August 1, 1990; amended May 23, 2005, effective immediately.