FORWARDING FEE
A payment of money made by one attorney who
receives a client to another attorney who referred
the client.
The Code of Professional Responsibility, which has been established by the AMERICAN
BAR ASSOCIATION to regulate the professional conduct of attorneys, proscribes the payment of forwarding fees—sometimes called referral
fees—to an attorney who has merely secured the
employment of another attorney without ren-
dering any services or assuming any responsibil-
ity to the client in the matter. An apportionment
of reasonable fees between attorneys is proper
only when the client is cognizant of, and con-
sents to, this arrangement, and when the alloca-
tion is in proportion to the services rendered
and the responsibility assumed by each attorney.
The Code of Professional Responsibility has
been adopted by many state bar associations. If
an attorney accepts a forwarding fee without
providing any services, or undertaking any
responsibility, the bar association may institute
disciplinary proceedings against the individual
for his or her unethical behavior.
FOUNDATION
A permanent fund established and maintained by
contributions for charitable, educational, reli-
gious, research, or other benevolent purposes. An
institution or association given to rendering
financial aid to colleges, schools, hospitals, and
charities and generally supported by gifts for such
purposes.
The founding or building of a college or hospi-
tal. The incorporation or endowment of a college
or hospital is the foundation, and those who
endow it with land or other property are the
founders.
Preliminary questions to a witness to establish
admissibility of evidence. Laying a foundation is
a prerequisite to the admission of evidence at trial.
It is established by testimony that identifies the
evidence sought to be admitted and connects it
