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Now, if there is one thing that you need to understand is that personal injury lawyers run their business just like any other companies – they seek ways to funnel sales and to enhance their standings in order to generate larger revenues.
And, when it comes to it, they also take advantage of regular and common strategies, just like referrals. So, with this in mind, if lawyer A refers a client to lawyer B, the latter is likely to pay a referral fee to the former. The fee which is called is regarded as just that – a “referral fee” and this is something particularly common. However, there are quite a few things that you might want to take into account here.
Why would a lawyer send business to another lawyer?
What you need to understand that in law, reputation is pretty much everything. You can’t afford to have a disappointed client because this is likely to resonate throughout the community in Ontario and once you get a bad name, it takes a lot of time to clean it.
With this in mind, the most common reason for which a lawyer would refer a client to another lawyer is when he doesn’t have the expertise or the time to handle said client’s case. For example, if you are a specialized real estate lawyer but a client comes with a huge product liability claim that you have never even dealt with before, it is only logical that you refer the client to someone that you know has the necessary skills, experience and capacity to handle. This is pretty much the most common case in which a lawyer is going to source work to a colleague. Lawyers have a close network of working professionals and they ensure that you are referred to the right lawyer or legal firm.
Are those fees legal?
This is something that some clients are actually concerned with but, yes, referral fees are 100% legal. In order for this to be true the client needs to be aware of the transaction and that he is not charged an additional price for it. There are plenty of reasons to select a lawyer that is experienced and has a trail of successful cases.
All in all, this is something particularly stimulating and it is actually benefiting the community. The lawyer who is not going to take the case is incentivized to refer the client to someone with the necessary experience in order for him to even get a commission. Additionally, the client is not going to keep on looking for a lawyer with the necessary experience. This is something particularly beneficial. That is why most people look online or get referrals with considerable ease.
It is important that you take advantage of the professional services of a personal injury lawyer or any other kind, for that matter, when you have a case, in order to ensure that your rights are truly represented when it comes to it – this is something critical.