Under Rule 5.4, sharing legal fees is restricted to what extent?

The rule you are referring to is designed to maintain the professional independence of lawyers and to prevent conflicts of interest that may arise from fee-sharing arrangements. Under Rule 5.4 of the ABA Model Rules of Professional Conduct, a lawyer is generally prohibited from sharing legal fees with non-lawyers. This prohibition ensures that lawyers remain independent and do not allow outside influences to compromise their professional judgment, which could potentially harm the interests of clients.

When it comes to lawyers sharing fees with other lawyers, particularly those within the same firm, this is permitted and indeed commonplace. The rule acknowledges that attorneys can work collaboratively and can share compensation as part of partnership or firm arrangements. Sharing fees with clients is also allowed under certain conditions, such as when it is part of a contingency fee agreement or when it's disclosed to and accepted by the client, but it is not as broadly permitted as sharing fees among lawyers.

The restriction is primarily focused on non-lawyers because their involvement in fee-sharing could lead to situations where a non-lawyer has a financial stake in the legal representation, potentially influencing the attorney's professional integrity and the obligations owed to clients. Thus, option D accurately reflects the extent of sharing legal fees prohibited under Rule 5.4, focusing specifically on non-lawyers