Sims

Defendant and appellant Fred M. Charness (Charness) appeals a judgment in favor of plaintiff and respondent James Christian Sims (Sims) following a court trial.

The essential issue presented is whether a fee-sharing agreement between Attorneys Charness and Sims amounted to a pure referral and thus was subject to rule 2-200 of the Rules of Professional Conduct of the State Bar of California, requiring written disclosure to, and written consent by, the client.

Rule 2-200 by its language is inapplicable where a member of the bar shares fees with a partner, associate, or fellow shareholder. (Rule 2-200(A).) However, a question remains as to the proper interpretation of the term “associate.” (Rule 2-200(A).) Based on our analysis, we conclude that where an outside lawyer functions “on a particular matter essentially on the same basis as an employee of the law office” (State Bar Formal Opn. No. 1994-138), the outside lawyer is an associate for purposes of rule 2-200, and no case referral is involved. On the facts herein, the outside lawyer, Sims, was an associate of Charness. Accordingly, the rule does not preclude Sims from enforcing the fee-sharing agreement, and the…