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Nonlawyer Ownership of Law Firms: Coming to a Jurisdiction Near You? | Conn Kavanaugh


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Traditionally, the only place to seek legal advice in the U.S. has been at a firm owned and run by one or more lawyers.  Change, though, may be on the horizon.  A few states have loosened the rules that enforce this norm, and several more are considering it.  This shift is hardly seismic at least, not yet but, if larger jurisdictions adopt similar changes, these liberalizations may well begin to shift the national landscape.
The Current Rule
With a few inapposite exceptions, ABA Model Rule 5.4 bars lawyers from sharing legal fees with nonlawyers and forbids law firms from having nonlawyer owners or officers.  The rule is intended to safeguard lawyers’ professional independence by insulating them from the supervision of nonlawyers who might prioritize profit over duty to clients.  One practical effect of the rule is that law firms generally do not provide services outside of law, because any nonlawyers ....

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How 4 Legal Startups Are Using a New Utah Law to Upend the Market


Samantha Lee/Insider
An experimental Utah regulatory program allows non-lawyers to practice law.
Legal-tech companies are using it to automate work that a lawyer would normally do.
The new regulations also let non-lawyers own and invest in law firms, raising some ethics concerns.
An experiment that could fundamentally reshape the legal industry is underway in Utah.
In 2020, Utah became the first state to let non-lawyers provide legal services through a so-called regulatory sandbox program.
The program lets companies experiment with different models of practicing law in a sandbox overseen by the Utah Supreme Court. It was designed to spur innovation and increase access to justice by lowering the regulatory barriers to practicing law, according to the Office of Legal Services Innovation, which reports to the state s Supreme Court. ....

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