California's Plan for Legal Fee Sharing, 'Regulatory Sandbox' Take Final Shape
The American Bar Association this month adopted a resolution encouraging state bars to consider "innovative approaches" to expanding legal services.
February 21, 2020 at 06:23 PM
5 minute read
A state bar committee charged with proposing ways to increase access to legal help in California holds its final scheduled meeting Monday, drawing to a close 14 months of work that has been lauded as innovative and criticized as a threat to consumers.
The Task Force on Access Through Innovation of Legal Services will gather in San Francisco to consider a daylong agenda with eight proposals. The recommendations—many scaled back from concepts introduced last year—include allowing fee sharing with nonprofits, creating a pilot program for new services called the "regulatory sandbox," and changing rules on legal advertising.
The 22-member group's final report is expected to go to the bar's board of trustees March 12.
The potentially sweeping changes in rules governing California's legal profession have been introduced as states throughout the nation grapple with how to serve large segments of the population who can't afford lawyers or don't know how to access the legal system.
The American Bar Association this month adopted a resolution encouraging state bars to consider "innovative approaches" to expanding legal services. The Conference of Chief Justices in February also approved a similar nonbinding measure, which said traditional legal aid approaches "are not likely to resolve the gap" between needs and services.
"We're really looking at empowering people who aren't going to lawyers to begin with or may not even need a lawyer," said Utah Supreme Court Justice Deno Himonas. Himonas chairs a Utah Supreme Court-created task force working on regulatory changes to encourage more legal access. That group's work is being closely eyed in California and other states.
But lawyers and other decision-makers in the Golden State have not been quick to warm to the proposed changes, especially those that would potentially give non-lawyers a toehold in the profession. A public comment period on the regulatory proposals drew approximately 3,000 responses last year, many of them critical.
There's no open enthusiasm for change in the Legislature, which has focused in recent years on cracking down on those practicing law without a license. The state Assembly Judiciary Committee is holding a hearing Tuesday on helping unrepresented litigants, but the task force and its proposals are not on the agenda.
Established lobby interests in the Legislature, including those representing plaintiffs attorneys and defense counsel, oppose altering professional rules for lawyers. The California Supreme Court, too, has not publicly championed the task force's proposals.
A verbal exchange at the task force's Feb. 4 meeting reflected the tension between those who want changes and those who are wary.
"There are many of us who are genuinely and properly concerned about consumer protection and the issues we already have with non-lawyers," Mark A. Lester, a Southern California estate planning lawyer, told task force members.
"I am constantly faced with documents that are inadequate," Lester said, referring to clients who bring him paperwork completed with a non-lawyer's help. "They were trying to do the right thing, but they caused more damage and hundreds of thousands of dollars in damage and/or attorneys fees. We need to have competent representation for our consumers out there."
"If you are so concerned about protecting consumers, what are you doing to proactively help those that are in need?" task force member Simon Boehme shot back. He continued: "I understand the need to protect the interests of consumers and the public. But right now the consumers and the public are struggling terribly. There is no representation available to them. There are no good solutions. And I'm curious where your concern is to create proactive solutions rather than being protectionist."
One of the key proposals under consideration by the task force is the idea of a regulatory sandbox, time-limited program that, with regulatory approval, would free service or product developers from existing professional rules or statutes that currently hinder their work.
A report accompanying the sandbox proposal points as an example to a developer working on a platform to help people with small claims court. A regulatory panel, appointed by the California Supreme Court or state bar, could exempt that developer from laws governing legal document assistants and monitor his or work to ensure consumer protection, the report says.
Information about the product's effectiveness in helping expand services would be collected. At the end of a multiple-year "sandbox period," regulators would decide whether to pursue formal rule or legal changes to allow further development of such products and services.
Utah is already developing its legal sandbox, which may be up and running this summer, Himonas said. The justice said he's already heard from entrepreneurs interested in working under the new system.
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
© 2024 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 AllShareholder Activists Poised to Pounce in 2025. Is Your Board Ready?
NLRB Bans 'Captive Audience' Meetings, Yanking Away Platform Employers Used to Combat Unionizing
Trending Stories
- 1How to Support Law Firm Profitability: Train Partners Up
- 2Elon Musk Names Microsoft, Calif. AG to Amended OpenAI Suit
- 3Trump’s Plan to Purge Democracy
- 4Baltimore City Govt., After Winning Opioid Jury Trial, Preparing to Demand an Additional $11B for Abatement Costs
- 5X Joins Legal Attack on California's New Deepfakes Law
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
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