§ 84-38. Solicitation of retainer or contract for legal services prohibited; division of fees. - North Carolina Statutes

§ 84‑38.  Solicitationof retainer or contract for legal services prohibited; division of fees.

It shall be unlawful for anyperson, firm, corporation, or association or his or their agent, agents, oremployees, acting on his or their behalf, to solicit or procure throughsolicitation either directly or indirectly, any legal business, whether to beperformed in this State or elsewhere, or to solicit or procure throughsolicitation either directly or indirectly, a retainer or contract, written ororal, or any agreement authorizing an attorney or any other person, firm,corporation, or association to perform or render any legal services, whether tobe performed in this State or elsewhere.

It shall be unlawful for anyperson, firm, corporation, or association to divide with or receive from anyattorney‑at‑law, or group of attorneys‑at‑law, whetherpracticing in this State or elsewhere, either before or after action isbrought, any portion of any fee or compensation charged or received by suchattorney‑at‑law, or any valuable consideration or reward, as aninducement for placing or in consideration of being placed in the hands of suchattorney or attorneys‑at‑law, or in the hands of another person,firm, corporation or association, a claim or demand of any kind, for thepurpose of collecting such claim or instituting an action thereon or ofrepresenting claimant in the pursuit of any civil remedy for the recoverythereof, or for the settlement or compromise thereof, whether such compromise,settlement, recovery, suit, claim, collection or demand shall be in this Stateor elsewhere. This paragraph shall not apply to agreements between attorneys todivide compensation received in cases or matters legitimately, lawfully andproperly received by them.

Any person, firm, corporationor association of persons violating the provisions of this section shall beguilty of a Class 1 misdemeanor.

The council of the NorthCarolina State Bar is hereby authorized and empowered to investigate and bringaction against persons charged with violations of this section and theprovisions as set forth in G.S. 84‑37 shall apply. Nothing containedherein shall be construed to supersede the authority of district attorneys toseek injunctive relief or institute criminal proceedings in the same manner asprovided for in G.S. 84‑7. Nothing herein shall be construed as abridgingthe inherent powers of the courts to deal with such matters. (1947, c. 573; 1973, c. 47,s. 2; 1993, c. 539, s. 599; 1994, Ex. Sess., c. 24, s. 14(c).)