From California to D.C., These Are the Proposals for Reforming Law Firm Ownership
Change is in the air as five jurisdictions consider new regulations that could affect the entire industry.
February 24, 2020 at 03:46 PM
2 minute read
Sacramento, California.
In The American Lawyer's March cover story, Dan Packel and Dylan Jackson closely examined the fight to reform the rules around law firm ownership and related issues—and the effect it could have on the industry's many stakeholders as the dominoes begin to fall. These are the jurisdictions whose regulatory reviews could get the ball rolling:
California
The Task Force on Access Through Innovation of Legal Services is preparing its final report, after an earlier set of recommendations offered both a more modest and a bolder approach to the question of fee-sharing with nonlawyers. If approved by the board of trustees, the proposal would then go to the California Supreme Court.
Utah
In August 2019, the Utah Supreme Court adopted the recommendations of the Implementation Task Force on Regulatory Reform. One track focuses on loosening restrictions on lawyers, while the other aims to create a new regulatory system focused on services, not just lawyers. The task force is establishing a regulatory sandbox in which innovators can try new approaches and outcomes will be closely observed.
Arizona
The state's Task Force on the Delivery of Legal Services in October 2019 recommended eliminating the prohibition on partnerships with nonlawyers. A petition to change the rules and implement a new regulatory framework was filed with the Arizona Supreme Court at the end of January, and public comments are due at the end of March. The court is expected to consider the petition in August.
Illinois
The Chicago Bar Association and the Chicago Bar Foundation announced in October 2019 a task force focused on updating Illinois' rules. They are aiming to have recommendations to the Illinois Supreme Court by the fall.
Washington, D.C.
The District of Columbia is already the sole jurisdiction in the country to allow some form of nonlawyer ownership. The D.C. Bar Global Legal Practice Committee announced in January it would consider expanding what is permissible. Public comments are due in mid-March, and any recommendations will first go to the bar's board of governors before potential submission to the D.C. Court of Appeals.
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