Restrictions on arrangements with managed services organizations

Colo. Rev. Stat. § 13-93-405, under COLORADO LEGAL PRACTICE INTEGRITY AND FEE-SHARING PROHIBITION ACT.

Colo. Rev. Stat. § 13-93-405

(1) A lawyer or law firm providing legal services shall not compensate or engage a managed services organization in any manner unless the compensation paid to the managed services organization is not contingent upon or calculated as a percentage of legal fees, revenues, or profits and is not determined by reference to recoveries, settlements, judgment awards, or case outcomes.

(2) Nothing in this section prohibits compensation, including flat fee or hourly payments, or engagement of managed services organizations that is not expressly prohibited by this section.

Source: L. 2026: Entire part added, (HB 26-1421), ch. 403, p. 2523, § 1, effective August 12.