(Law Sites) Dec 17, 2024
Summary: The Association of Professional Responsibility Lawyers (APRL) has formally requested that the American Bar Association (ABA) revise Model Rule 5.4 to permit fee-sharing between lawyers and non-lawyers under specific conditions.
Model Rule 5.4 currently prohibits lawyers from sharing legal fees with non-lawyers, aiming to preserve lawyers’ professional independence. APRL contends that this restriction impedes innovation and limits access to justice. Their proposal suggests allowing fee-sharing provided that:
- Lawyers maintain independent professional judgment.
- Non-lawyer contributions are properly supervised.
- Fees remain reasonable.
- Clients provide informed written consent.
APRL references reforms in states like Arizona and Utah, which have adopted alternative business structures permitting non-lawyer ownership and fee-sharing without compromising ethical standards.
Jeff’s Take: Yet another initiative and voice to modify Rule 5.4. I suspect the ABA will ignore this request. But, add it to the pile of rejected deregulation ideas. Eventually, it will be too big of a pile to ignore. Then, I believe we will see more serious baby steps in the direction of deregulation.
