Category Archives: Non-lawyer ownership of law firms

Utah Supreme Court proposals would permit non-lawyers to own law firms and share fees with lawyers

Hello everyone and welcome to this Ethics Alert, which will discuss recent Utah Supreme Court proposals which would permit non-lawyers to own law firms, share fees with lawyers, and make other significant revisions.  The link with the Utah Supreme Court Regulatory Reform Proposals is here:  http://www.utcourts.gov/utc/rules-comment/2020/04/24/supreme-court-regulatory-reform-proposal-comment-period-closes-july-23-2020/

The proposals would allow non-lawyers to own or invest in law firms, eliminate the prohibition on attorney fee sharing with non-lawyers, and create a new Office of Legal Services Innovation.  These proposals result from a review conducted by Utah’s Implementation Task Force on Regulatory Reform, which was created after a working group issued a report in 2019 recommending a variety of measures to address access to legal services. The Utah Supreme Court is requesting comments by July 23, 2020.

If the proposals are implemented, Utah would join the United Kingdom and Australia in permitting such activities and it would the first U.S. jurisdiction to make these changes, although Washington D.C. does allow non-lawyers to own law firms).

If the proposals are adopted, a pilot regulatory “sandbox” would oversee and evaluate nontraditional legal services providers and entities offering new types of legal services. The oversight would be provided by a new Office of Legal Services Innovation, which would conduct reviews to ensure that “sandbox” participants are meeting the various objectives and principles set forth by the Utah Supreme Court.  A process would also be established for determining which participants would receive the appropriate license to practice law.

The Utah Supreme Court issued a press release on April 24, 2020 describing the proposals and providing information.  The link to the press release is here: http://www.utcourts.gov/utc/rules-comment/wp-content/uploads/sites/31/2020/04/Supreme-Court-Regulatory-Reform-PR-4-24-20.pdf.  According to the press release:

“The Utah Supreme Court has recognized the lack of affordable legal services can be devastating for many people. Between free but limited legal aid, and standard attorney service that can easily exceed $200 an hour, there are few options for affordable legal help.  The current COVID-19 pandemic has underscored the importance of finding new, affordable, and high-quality innovations as quickly as possible.

That is why the Supreme Court is offering expedited review and approval of proposals from individuals and entities who believe they can offer low-cost, or no-cost, legal advice for small businesses, people with unemployment issues, and others.”

Bottom line:  These Utah Supreme Court proposals have been under review and consideration in Utah for a number of years and I have previously blogged about them.  It now appears that the Covid-19 pandemic and the ongoing economic disruption have accelerated the Utah Supreme Court’s view of the necessity for these revisions/programs and that the changes be expedited.

Stay safe and healthy and be careful out there.

Disclaimer:  this e-mail is not an advertisement, does not contain any legal advice, and does not create an attorney/client relationship and the comments herein should not be relied upon by anyone who reads it.

Joseph A. Corsmeier, Esquire

Law Office of Joseph A. Corsmeier, P.A.

2999 Alt. 19, Suite A

Palm Harbor, Florida

Office (727) 799-1688

Fax     (727) 799-1670

jcorsmeier@jac-law.com

www.jac-law.com

 

Joseph Corsmeier

about.me/corsmeierethicsblogs

 

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Arizona legal advocates program beginning in September 2020 will train non-lawyers to provide limited legal advice

Hello everyone and welcome to this Ethics Alert which will discuss the Arizona licensed legal advocates program beginning in September 2020 which will provide training for non-lawyers to provide limited  legal advice.  A recent news release on the program by the University of Arizona James E. Rogers College of Law is here:  https://law.arizona.edu/news/2020/02/new-licensed-legal-advocates-pilot-program

The Rogers College of Law initiated a two-year pilot project that will license a small group of non-lawyers to give limited legal advice on civil matters related to domestic violence.  The individuals will be known as licensed legal advocates and will be trained to provide legal advice on protective orders, divorce, child custody, consumer protection and housing.

Three to four lay legal advocates from Southern Arizona’s Emerge! Center Against Domestic Abuse are expected to start an eight-week training program at the law school in September 2020.  The individuals must have a bachelor’s degree and at least 2,000 hours of experience as a lay legal advocate.  The Arizona lay legal advocates will be permitted to provide general information about legal forms and court procedures in issues stemming from domestic violence, but are prohibited from providing legal advice.

The training will have an online curriculum and in-person classes.  The Arizona Supreme Court’s Administrative Office of the Courts is working with the Innovation for Justice Program to include a licensing examination for the course. If the pilot is made permanent, the licensed legal advocates will be required to take continuing legal education courses after completing the training.  Individuals who are required to appear in court in a matter will represent themselves; however, the licensed legal advocate will be permitted to sit at that individual’s table.

The pilot project runs until the end of 2021 and includes a research study which will review procedural fairness, whether a licensed legal advocate was able to provide the required level of legal services, and case outcomes.

The 2020-2021 pilot project results from a 2019 Arizona Supreme Court task force report on legal services delivery which recommended, inter alia, the elimination Arizona Rule of Professional Conduct 5.4 (based on Rule 5.4 of the ABA Model Rules of Professional Conduct) which restricts lawyer partnerships with nonlawyers in law firms.  An American Bar Association Task Force Report in October 2019 also recommended elimination of the Model Rule

The October 2019 American Bar Association Task Force on the Delivery of Legal Services Report is here:   https://www.americanbar.org/content/dam/aba/administrative/legal_education_and_admissions_to_the_bar/council_reports_and_resolutions/november2019/arizona-supreme-court-task-force-on-delivery-of-legal-services-final-report-2019-october.pdf

The Arizona Supreme Court is expected to vote on the recommendation to eliminate Arizona Bar Rule of Professional Conduct 5.4 in August 2020.

The Arizona Supreme Court authorized a pilot project creating a legal document preparer program to assist people in domestic violence matters.  As I previously reported, the Utah Supreme Court voted in August 2019 to pursue a regulatory reform working group’s recommendations, which included either eliminating or relaxing Utah’s Rule 5.4 and the Ethics Alert blog on that vote and working group report is here:  https://jcorsmeier.wordpress.com/2019/09/03/utah-supreme-court-approves-pilot-program-to-permit-non-traditional-legal-services-including-non-lawyer-firm-ownership/

The Utah working group report and the Arizona Supreme Court task force report are both referenced in the report accompanying proposed American Bar Association Resolution 115, which is scheduled to be considered and potentially approved by the ABA House of Delegates on Feb. 17, 2020 at the ABA Midyear Meeting in Austin, Texas. The resolution requests that the ABA to encourage jurisdictions to consider regulatory innovation and examine existing regulations, including those related to the unauthorized practice of law.

Bottom line:  This Arizona non-lawyer “legal advocate” pilot program permitting non-lawyers to give limited legal advice is a continuation of the trend toward expanding the non-lawyer practice of law and also authorizing non-lawyers to own legal service entities.  As always, I will be following it and I will keep you advised

Be careful out there.

Disclaimer:  this e-mail is not an advertisement, does not contain any legal advice, and does not create an attorney/client relationship and the comments herein should not be relied upon by anyone who reads it.

Joseph A. Corsmeier, Esquire

Law Office of Joseph A. Corsmeier, P.A.

2999 Alt. 19, Suite A

Palm Harbor, Florida 34683

Office (727) 799-1688

Fax     (727) 799-1670

jcorsmeier@jac-law.com

www.jac-law.com

 

Joseph Corsmeier

about.me/corsmeierethicsblogs

 

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Filed under 2018 Utah rules permitting non-lawyer legal practice, 2019 California non-lawyer practice and ownership proposals, 2019 Utah pilot program permitting non-traditional legal services, including non-lawyer firm ownership, ABA Resolution 105 non lawyer ownership of law firms, fee sharing, Fee sharing with non-lawyer owned firms, joe corsmeier, Joseph Corsmeier, Non lawyer compensation, Non-lawyer limited practice of law, Non-lawyer ownership, Non-lawyer ownership of law firms, non-lawyer ownership of law firms and fee splitting, Non-lawyer practice of law, Non-lawyer practicing law, Uncategorized

Washington D.C. Bar considers relaxing Bar Rules related to non-lawyer law firm ownership and fee splitting

Hello everyone and welcome to this Ethics Alert which will discuss a Washington D.C. Bar committee press release announcing a review regarding the potential relaxing of that jurisdiction’s non-lawyer law firm ownership rules, including potential fee sharing/splitting.  The January 23, 2020 D.C. Bar press release announcing the review is here: https://www.dcbar.org/about-the-bar/news/DC-Bar-Global-Legal-Practice-Committee-Seeks-Public-Comment-on-Rule-of-Professional-Conduct-5-4.cfm

Washington D.C. is the only U.S. jurisdiction that allows lawyers to partner with nonlawyers and those partnerships are subject to certain restrictions; however, a D.C. Bar committee has announced that it will be exploring less restrictive rules.  According to the D.C Bar press release, the D.C. Bar’s Global Legal Practice Committee will be taking public comments on its current system and potential changes until March 9, 2020.

The press release identifies “alternative business structures” and “multidisciplinary practice” as areas of interest. United Kingdom rules permit alternative business structures which authorize legal service providers to apply for licenses allowing outside ownership or non-lawyer investment.  Multidisciplinary practice refers to a type of Alternative Business Structures (ABS) firm that provides both legal and non-legal services.

The current Washington D.C. Bar rule permitting non-lawyer ownership is a modification of the American Bar Association’s Model Rule 5.4(b) and was implemented in 1991.  The rule permits lawyers to practice law in a with non-lawyer partners/owners if the non-lawyers provide professional services within the firm, the law firm solely offers only legal services, and non-lawyers follow the rules of professional conduct.

The press release states that the committee would like to receive responses from Washington D.C. law firms that have non-lawyer partners to determine if the current rules have made it easier to retain professionals including medical doctors or nurse practitioners, mental health experts, economists, lobbyists, accountants and law firm managers. The press release also states that it would like to know if there is any client demand for more types of professional services, and whether firms have lost business because of their inability to deliver these services.

The press release also requests comments regarding how law firms could benefit from sharing fees with non-lawyers, and whether this outside investment would allow greater innovation through technology use or increased financial stability.  The committee is also considering how a rule change would impact firms that currently work with third-party litigation funders, or are interested in doing this and will be examining what type of regulatory structure would work best for non-lawyers working within law firms.

California, Utah and Arizona also have Bar task forces which are examining similar potential revisions and the Chicago Bar Association has announced the creation of a task force.  The ABA’s House of Delegates will also consider a resolution that would encourage jurisdictions across the U.S. to experiment with new regulatory models at its February midyear meeting in Austin, Texas.

Bottom line:   As I indicated, Washington D.C. is the only U.S. jurisdiction that currently allows lawyers to partner with nonlawyers and those partnerships are subject to certain restrictions; however, D.C. is considering relaxing its rules and other jurisdictions are considering new rules related to non-lawyer ownership of law firms.

I will keep you advised…and be careful out there.

Disclaimer:  this e-mail is not an advertisement, does not contain any legal advice, and does not create an attorney/client relationship and the comments herein should not be relied upon by anyone who reads it.

Joseph A. Corsmeier, Esquire

Law Office of Joseph A. Corsmeier, P.A.

2999 Alt. 19, Suite A

Palm Harbor, Florida 34683

Office (727) 799-1688

Fax     (727) 799-1670

jcorsmeier@jac-law.com

www.jac-law.com

Joseph Corsmeier

about.me/corsmeierethicsblogs

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Filed under fee sharing, Fee sharing with non-lawyer owned firms, joe corsmeier, Joseph Corsmeier, Lawyer ethics, Lawyer Ethics and Professionalism, Lawyer sharing fees with non-lawyers, Non-lawyer ownership, Non-lawyer ownership of law firms, non-lawyer ownership of law firms and fee splitting, Uncategorized, Washington D.C.- rules related to non-lawyer ownership of law firms

Utah Supreme Court approves pilot program to permit non-traditional legal services, including non-lawyer firm ownership

Hello everyone and welcome to this Ethics Alert, which will discuss the unanimous Utah Supreme Court approval of a pilot program to permit non-traditional legal services, including non-lawyer firm ownership.  The report of the Utah Work Group on Regulatory Reform titled Narrowing the Access-To-Justice Gap by Reimagining Regulation is here:  https://www.utahbar.org/wp-content/uploads/2019/08/FINAL-Task-Force-Report.pdf

In an opinion dated August 29, 2019 (which is not yet published), the Utah Supreme Court voted unanimously to approve the recommendations of the work group which called for “profoundly reimagining the way legal services are regulated in order to harness the power of entrepreneurship, capital, and machine learning in the legal arena.”

The work group proposed the creation of a new structure in Utah for the regulation of legal services that would provide for broad-based investment and participation in business entities that provide legal services, including non-lawyer investment in and ownership of these entities.  The report stated that this goal should be achieved in two ways:

  1. Substantially loosening regulatory restrictions on the corporate practice of law, lawyer advertising, solicitation, and fee arrangements, including referrals and fee sharing and;
  1. Simultaneously establishing a new regulatory body, under the supervision of the Supreme Court, to advance and implement a risk-based, empirically-grounded regulatory process for legal service entities.

The Utah Supreme Court’s approval of the recommendations begins the first stage the report’s recommendations, which includes the creation of an implementation task force that will establish the new regulatory body as a pilot program that will be in place for about two years. The regulatory body will work with the Utah State Bar, which will continue to maintain its authority over lawyers and licensed paralegal practitioners (LPPs) and regulate non-traditional legal services which is not currently allowed under Utah’s rules.

Stage one of the plan also includes the creation of a “regulatory sandbox” which will be managed by the new regulating body, and will allow a limited market of non-traditional legal entities to provide legal services in the state. According to the report, “The goal is to allow the Court and aspiring innovators to develop new offerings that could benefit the public, validate them with the public, and understand how current regulations might need to be selectively or permanently relaxed to permit these and other innovations.”

The report also requested the Supreme Court to order three changes that would allow the pilot to operate as part of the first stage, including:

  1. Creation of the regulating body as an implementation task force of the court and delegate regulatory authority to set up and run the regulatory sandbox;
  2. Establish that providers approved to participate in the regulatory sandbox are not engaged in the unauthorized practice of law in Utah; and
  3. Establish that lawyers will not be subject to discipline for entering into business with or otherwise providing services with providers in the sandbox.

The court has not issued a written order and a Utah Supreme Court Justice who was on the Task Force stated that he expects the court to issue a press release soon providing further details.

As I previously blogged, the Utah Supreme Court previously approved Limited License Practitioner Rules which became effective November 1, 2018 and the first LLPs in Utah were expected to be licensed in 2019.  This makes Utah the most recent state to license non-lawyers to practice law and will allow LLPs practice without a lawyer’s supervision in three areas, including matters involving temporary separation, divorce, parentage, cohabitant abuse, civil stalking, custody and support, and name change, matters involving forcible entry and detainer, and debt collection matters in which the dollar amount in issue does not exceed the statutory limit for small claims cases.  LLPs will not be permitted to appear in court on behalf of a client.

Bottom line:  This is a very significant step toward the acceptance of non-traditional and non-lawyer practice in Utah and in the United States.  All of the states which have approved such rules are in western states, so far.  The beat goes on…stay tuned.

Be careful out there. 

Disclaimer:  this e-mail is not an advertisement, does not contain any legal advice, and does not create an attorney/client relationship and the comments herein should not be relied upon by anyone who reads it.

Joseph A. Corsmeier, Esquire

Law Office of Joseph A. Corsmeier, P.A.

2999 Alt. 19, Suite A

Palm Harbor, Florida

Office (727) 799-1688

Fax     (727) 799-1670

jcorsmeier@jac-law.com

www.jac-law.com

Please note:  My office has moved and the new office address is 2999 Alt. 19, Palm Harbor, FL 34683.  All other contact information remains the same.

Joseph Corsmeier

about.me/corsmeierethicsblogs

 

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Filed under 2018 Utah rules permitting non-lawyer legal practice, 2019 Utah pilot program permitting non-traditional legal services, including non-lawyer firm ownership, Attorney Ethics, joe corsmeier, Joseph Corsmeier, Lawyer sharing fees with non-lawyers, Non-lawyer ownership, Non-lawyer ownership of law firms, Non-lawyer practice of law, Non-lawyer practicing law, Uncategorized

Proposed Florida Bar Advisory Opinion finds that lawyers may share fees with lawyers in firms owned with non-lawyers

Hello everyone and welcome to this Ethics Alert which will discuss Proposed Florida Bar Advisory Ethics Opinion 17-1 (June 23, 2017) which states that Florida Bar members may divide fees with out of state lawyers who are members of law firms which have nonlawyer ownership as permitted in the jurisdiction where the law firm is located.

The proposed ethics opinion is here:  https://www.floridabar.org/news/tfb-news/?durl=%2Fdivcom%2Fjn%2Fjnnews01.nsf%2F8c9f13012b96736985256aa900624829%2Fda5da7932958bb6a852581560062520c.  The proposed opinion is not final.  See below for details and opportunity to comment.

One of the issues that Florida lawyers who wish to co-counsel with out of state lawyers face is whether the lawyer can share fees with other lawyers who are members of law firm with non-lawyer owners as permitted in that jurisdiction.  Non-lawyer ownership of law firms is currently permitted in Washington, D.C. and the State of Washington in the U.S., the Canadian provinces Ontario, British Columbia and Quebec, the countries of England, Wales, Scotland, Germany, the Netherlands, Brussels, and New Zealand.

The Professional Ethics Committee was asked by the Florida Bar’s Board of Governors to opine on whether Florida lawyers are permitted divide fees with out-of-state lawyers who are members of law firms in which there is nonlawyer ownership because nonlawyer ownership is allowed in the jurisdiction where the other law firm is located.  The proposed opinion found that such fee sharing “in accordance with Florida rules, law, and ethics opinions does not violate the prohibition against fee sharing set forth in Rule 4-5.4.” (emphasis supplied)

According to the proposed ethics opinion,

“Florida Bar members frequently work with lawyers outside their firms in representing clients. Florida Bar members also co-counsel cases with lawyers who are admitted solely in jurisdictions outside of Florida. Lawyers admitted solely in jurisdictions outside Florida are authorized to provide legal services in Florida under limited circumstances. Co-counselling with out-of-state lawyers thus raises potential concerns regarding assisting in the unlicensed practice of law and improper division of legal fees. Florida Bar members may divide fees with lawyers from other jurisdictions only where the out-of-state lawyers are providing legal services to the same client that the out-of-state lawyers are authorized by other law to provide and only in compliance with Florida Bar rules. See, Rules 4-1.5(g), 4-5.4(a), 4-5.5, and Florida Ethics Opinions 90-8, 88-10, and 62-3.

“Florida Bar members are prohibited from partnering or sharing legal fees with nonlawyers. See, Rule 4-5.4. Most U.S. jurisdictions share a similar prohibition. The only United States jurisdictions that currently permit nonlawyer ownership of law firms are Washington, D.C. and Washington state. Nonlawyer ownership of law firms is permitted in Canadian provinces Ontario, British Columbia and Quebec, England, Wales, Scotland, Germany, the Netherlands, Brussels, and New Zealand.

“Requirements and limitations on nonlawyer ownership vary in jurisdictions that allow it.

“This opinion addresses Florida Bar members in co-counseling and dividing fees with out-of-state lawyers with whom the Florida Bar members are permitted to divide fees as noted above, and in which the out-of-state lawyers practice in law firms with nonlawyer ownership as permitted by the other jurisdiction.

“The committee is of the opinion that sharing fees with an out-of-state lawyer in accordance with Florida rules, law, and ethics opinions does not violate the prohibition against fee sharing set forth in Rule 4-5.4. A Florida Bar member should not be subject to discipline merely because a nonlawyer ultimately may receive some part of the out-of-state lawyer’s fee solely by virtue of being an owner of the out-of-state law firm. The Florida Bar member has no control over the organization and ownership of the out-of-state firm. The out-of-state law firm may be organized in accordance with the rules of its own jurisdiction. The fact that the nonlawyer ownership would not be permitted in Florida should not impact what the out-of-state lawyer is permitted to do under the rules of that jurisdiction. To opine otherwise unnecessarily places Florida Bar members at risk and deprives clients of counsel of their own choosing from other jurisdictions.

“Other jurisdictions that have addressed the issue have reached similar conclusions. See, ABA Formal Opinion 464 (2013); New York City Bar Formal Ethics Opinion 2015-8 (2015); and Philadelphia Bar Association Ethics Opinion 2010-7 (2010).

“ABA Formal Opinion 464 also cautions lawyers that they:

. . .must continue to comply with the requirement of Model Rule 5.4(c) to maintain professional independence. Even if the other law firm may be governed by different rules regarding relationships with nonlawyers, a lawyer must not permit a nonlawyer in the other firm to interfere with the lawyer’s own independent professional judgment. As noted above, the actual risk of improper influence is minimal. But the prohibition against improper nonlawyer influence continues regardless of the fee arrangement.

“The committee agrees with and adopts the reasoning of the ABA Standing Committee on Ethics and Professional Responsibility in formal opinion 464 above.

“Finally, the committee notes that this opinion does not address a Florida Bar member becoming a partner, shareholder, associate, or other formal arrangement in a law firm that is permitted to have nonlawyer ownership in its home jurisdiction and does so in compliance with the rules of its home jurisdiction. Neither does this opinion address the issue of a Florida Bar member who also is admitted to practice in another jurisdiction where nonlawyer ownership is permitted joining a law firm with nonlawyer owners under the rules of the other jurisdiction.”

___________________

1Alternative Law Business Structures ABA Issue Paper (April 5, 2011) available at:http://www.americanbar.org/content/dam/aba/administrative/ethics_2020/abs_issues_paper.authcheckdam.pdf.

Bottom line:  This ethics opinion finds that sharing fees with lawyers who are members of law firms which have non-lawyer ownership does violate not the prohibition against fee sharing set forth in Florida Bar Rule 4-5.4; however, the opinion is not final.

According to the Bar’s Notice:

“Pursuant to Rule 4(c) and (d) of The Florida Bar Procedures for Ruling on Questions of Ethics, comments from Florida Bar members are solicited on the proposed opinion. The committee will consider any comments received at a meeting to be held in conjunction with The Florida Bar’s Fall Meeting at 9:30 a.m. on Friday, October 13, 2017, at the Tampa Airport Marriott. Comments must contain the proposed advisory opinion number and clearly state the issues for the committee to consider. A written argument may be included explaining why the Florida Bar member believes the committee’s opinion is either correct or incorrect and may contain citations to relevant authorities. Comments should be submitted to Elizabeth Clark Tarbert, Ethics Counsel, The Florida Bar, 651 E. Jefferson Street, Tallahassee 32399-2300, and must be postmarked no later than 30 days from the date of this publication.”

Be careful out there.

Disclaimer:  this e-mail is not an advertisement, does not contain any legal advice, and does not create an attorney/client relationship and the comments herein should not be relied upon by anyone who reads it.

Joseph A. Corsmeier, Esquire

Law Office of Joseph A. Corsmeier, P.A.

29605 U.S. Highway 19, N., Suite 150

Clearwater, Florida 33761

Office (727) 799-1688

Fax     (727) 799-1670

jcorsmeier@jac-law.com

www.jac-law.com

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Filed under Attorney Ethics, Ethics Opinion sharing fees with non-lawyer owned law firms Rule 4-5.4, Fee sharing with non-lawyer owned firms, Florida Bar, Florida Bar ethics opinion sharing fees with non-lawyer owned law firms, joe corsmeier, Joseph Corsmeier, Lawyer ethics, Lawyer Ethics and Professionalism, Lawyer ethics opinions, lawyer fee splitting, Lawyer referral fees, Lawyer sharing fees with non-lawyers, Non-lawyer ownership of law firms

ABA adopts Resolution 105 encouraging states to consider non-traditional legal service providers, including non-lawyer firm ownership

Hello and welcome to this Ethics Alert blog which will discuss the American Bar Association’s February 8, 2016 approval and adoption of Formal Resolution 105, which adopts the ABA Model Regulatory Objectives for the Provision of Legal Services.  The Final ABA Resolution 105 as Revised and Adopted is here: http://www.americanbar.org/content/dam/aba/images/abanews/2016mymres/105.pdf

According to the ABA website, Resolution 105 “(a)dopts the ABA Model Regulatory Objectives for the Provision of Legal Services, dated February, 2016 and urges that each state’s highest court, and those of each territory and tribe be guided by the Model Regulatory Objectives when they assess the court’s existing regulatory framework and any other regulation they may choose to develop concerning non-traditional legal service providers.” https://www.americanbar.org/news/reporter_resources/midyear-meeting-2016/house-of-delegates-resolutions/105.html

The ABA Resolution calls for the adoption of “regulatory objectives for the provision of legal services” that would help “identify and implement regulations related to legal services beyond the traditional regulation of the legal profession.”  With the exception of the District of Columbia, no jurisdiction in the U.S. permits non-lawyer ownership of law firms (although the United Kingdom and some U.K. commonwealth countries do permit it).

The arguments for non-lawyer ownership of law firms include that it would expand consumers’ access to legal services, encourage innovation, and reduce the cost of legal services; however, the Resolution has drawn criticism.  The arguments against non-lawyer ownership include that it would encourage profit making (and taking) over serving clients and the public.

According to a Wall Street Journal “LawBlog” article (quoting AmLaw Daily)”:

(T)he mere mention of “non-traditional legal service providers” raises hackles for some in the ABA. The Texas state bar board, for example, has asked Texas delegates to withhold their support for Resolution 105.  State bar president-elect Frank Stevenson II of Locke Lord said the board opposes the proposal because it seems to presume there’s a place for non-lawyers to provide legal services.”

The LawBlog article also states that “(t)he New York State Bar Association is also fighting against the resolution, saying it would open the door to nonlawyer firm ownership. ‘Nonlawyer ownership of law firms creates a whole new set of fiduciary responsibilities, which have nothing to do with the best interests of the clients we are duty-bound to serve,’ the state bar’s president, David P. Miranda, said in a statement.”

Bottom line: This is has been, and continues to be, a very controversial issue; however, there does not seem to be much support for non-lawyer ownership of law firms in Florida or other jurisdictions.

Disclaimer:  this e-mail is not an advertisement and does not contain any legal advice and the comments herein should not be relied upon by anyone who reads it.

Joseph A. Corsmeier, Esquire

Law Office of Joseph A. Corsmeier, P.A.

2454 McMullen Booth Road, Suite 431

Clearwater, Florida 33759

Office (727) 799-1688

Fax     (727) 799-1670

jcorsmeier@jac-law.com

www.jac-law.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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