A colleague recently sought advice on the following (facts have been changed):
I recently achieved a fantastic result for an out of state client who had a matter in my jurisdiction. The client now wants me to help with all of his legal work, and asked me to assist with a matter in his home state where I’m not licensed involving a subject with which I have limited experience. Should I take the case and retain outside counsel to assist or just refer it out entirely?
The question is trickier than it seems. If my colleague had asked about an inquiry from a prospective client with a matter he couldn’t handle, referral is a no brainer. There’s simply no reason to try to hang on to a matter outside your expertise and jurisdiction and either incur the cost of retaining outside counsel (which will potentially increase the cost to the client) or run the risk of unauthorized practice or malpractice if you don’t. Moreover, referral doesn’t necessarily mean that you’ll lose devised ethically compliant ways to facilitate payment of referral fees.
But things are different when servicing established clients. Some lawyers are loathe to refer an established client because they fear the other firm may try to poach the client. The prospect of poaching doesn’t worry me – after all, if another firm steals my client, it’s my bad for not having done enough to keep him (that’s true even if the other firm badmouths me – because if a client believes those lies or doesn’t feel comfortable enough to bring them to my attention, then I haven’t done my job in maintaining a trusted relationship). What does concern me, however, is that if I refer a client to another firm, those lawyers may not take care of the client as I would, or deliver the same quality of service that I provide. Indeed, there’s a very, very small group of colleagues whom I trust enough to serve my existing gold-standard clients.