'This Is Madness': Big Law Weighs In on California Nonlawyer Ownership Proposal
"Why are we even contemplating allowing non-attorneys to practice law and provide legal advice?" an Alston & Bird partner said.
September 24, 2019 at 10:15 AM
6 minute read
The original version of this story was published on The Recorder
Hundreds of responses received over the last two months about various California bar proposals that could alter fee-sharing and open a door to nonattorney ownership of firms reveal a common thread: Most of those who shared their thoughts don't support a wholesale reshaping of how legal clients are served in the Golden State.
The bar asked for opinions on 16 concepts under consideration by the Task Force on Access Through Innovation of Legal Services, a panel charged with proposing ways to increase the availability of legal help. The concepts under consideration range from promoting greater use of technology to allowing different forms of fee-sharing.
Many of the respondents are solo practitioners or lawyers at small firms, although several Big Law names responded, too. Monday was the deadline for submitting comments on the state bar committee's ideas for restructuring legal services in California.
"This is madness. Why are we even contemplating allowing non-attorneys to practice law and provide legal advice? There are attorneys admitted to the bar of this state who are barely competent and provide questionable advice. They also commit ethical malfeasance," Los Angeles-based Alston & Bird partner Elizabeth Sperling said in a letter. "How much worse will it be for people who are not even attorneys?"
The task force is expected to send its final recommendations to the bar's board of trustees in January. Changes will need the approval of the California Supreme Court and possibly the Legislature.
What follows are excerpts from some of the hundreds of comments about contentious issues under consideration:
'Drastic' nature of proposed changes compels narrower discussion.
>> Ten Am Law 200 firms, including Morrison & Foerster, Baker McKenzie and Cooley, said in their response: "At the same time that this task force considers innovations that would aid the underserved in gaining access to justice … there is also a wider debate in progress between lawyers and non-lawyers over how legal services will be delivered to those who have no impediments to access. In particular, large accounting firms have long coveted the legal fees that lawyers in California and elsewhere receive for serving their best clients."
The firms also said: "Changes of such a drastic nature on so important a topic should not be made, inadvertently or otherwise, via a vehicle designed to address expansion of access to the underserved residents of California. Instead, if such an action is to be considered, it should be undertaken by a task force chartered specifically to address that issue."
>> And a comment from the California Defense Counsel: "At the outset, we believe that the [task force] report … fails to make the case for such radical suggestions as opening up ownership of law firms to virtually any entity, and almost completely unfettered fee-sharing." The California Defense Counsel added: "Respectfully, the [task force] report seems designed to support a predetermined position on the major recommendations. Throughout the report, the 'pros' and 'cons' of the various proposals are long on the supposed benefits of promoting a 'one-to-many' change in the delivery of legal services, especially to low- and middle-income consumers, with little to no recognition of the harm which could result from a move away from a human lawyer evaluating and counseling individual clients from a position of fiduciary duty."
The proposed exemption to regulations barring unlicensed practice of law "deserves further study."
The Consumer Attorneys of California said in a letter to the bar: "This proposal provides three different options of having non-lawyers provide legal services directly to the public, either through a regulated entity, a hybrid regulatory scheme where both the entity and non-attorneys are regulated, or by certification of non-attorney legal technicians. … The contemplated entity or limited license legal technician (LLT) regulation would be through the State Bar or another regulatory agency, such as the Department of Consumer Affairs (DCA)."
"The areas of practice being considered for those certified as LLTs are housing, health and social services, domestic relations and domestic violence. It may make sense in connection with authorizing entity regulation for non-profits to allow non-profit legal technicians to provide these limited types of legal services to underserved communities. Allowing non-profits to provide services on a sliding scale to consumers in these areas may positively impact the justice gap."
Two competing views on allowing "mixed entities" to own law firms.
>> J. Frederick Clarke, a Berkeley solo, wrote in opposition to the bar's proposal. "The responsible elder law community and the State Bar have fought for years against unscrupulous financial products companies partnering with attorneys for living trust seminars that actually sell annuities. Why is the State Bar now proposing to legitimate such arrangements?"
>> Raj Abhyanker, a partner at LegalForce Law, supported the measure. "In order for law firms to innovate and become more efficient, [they] need to have skills of different viewpoints in ownership level decisions. Moreover, it is important to open up access to capital so that law firms can have access to the capital needed to innovate."
Support, and opposition, for allowing fee-sharing with nonprofits and allowing nonlawyer ownership.
>> Genie Harrison of Genie Harrison Law Firm, opposed the proposal. "There is already too much pressure to be profitable, and making Google Law Firm, or something like that, a possibility is going to drive this into a gig economy task-based system instead of a profession that expects individualized attention to each case and client," Harrison wrote. "This business model would invite and encourage corners to be cut instead of encourage what the State Bar says it wants, which is more professional lawyers."
>> Meanwhile, Blake Slater of Legal Value Firm offered support. "I fully support changes to the traditional model to increase access and affordability to the public. Due to prohibition of non-attorney ownership to date, the ability to increase these benefits have been extremely hamstrung," Slater wrote. "Approving these rules will increase investing and maximize efficiency in the legal landscape. These results will further allow for lower prices for consumers and a refocusing on delivery of such services by legal service providers across the board. These potential benefits should far outweigh any perceived risks."
Read more:
California Plan for Lawyer Fee-Sharing Picks Up Speed
New Law Blocks State Bar's Access to Applicants' Mental Health Records
California's Indigent Are Not Finding Legal Help, Bar Study Says
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllDelivery of Legal Services Is Changing as More States Explore Reform Measures
Axiom's Arizona Law Firm Hires Transactional Attorney From DLA Piper
'A Giant of the Bar': Longtime Proskauer Rose Partner and Holocaust Survivor Robert Kaufman Dies at 94
City Bar Proposal Would Formally Allow Fee Sharing With Litigation Funders
Trending Stories
- 1Gibbons Reps Asylum Seekers in $6M Suit Over 2018 ‘Inhumane’ Immigration Policy
- 2DC Judge Chutkan Allows Jenner's $8M Unpaid Legal Fees Lawsuit to Proceed Against Sierra Leone
- 3Internal Whistleblowing Surged Globally in 2024, so Why Were US Numbers Flat?
- 4In Resolved Lawsuit, Jim Walden Alleged 'Retaliatory' Silencing by X of His Personal Social Media Account
- 5Government Attorneys Face Reassignment, Rescinded Job Offers in First Days of Trump Administration
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250