Non-Lawyer Firm Ownership Considered In ABA Resolution

A resolution floated by the American Bar Association’s Commission on the Future of Legal Services is meant to develop guidelines for local bar authorities considering regulations on “non-traditional legal service providers.” The vague language has raised concerns by some bar associations that the ABA may be opening the door for non-lawyers to own stakes in law firms. Proponents say that doing so could spur innovation and reduce the cost of legal help. Critics worry that involving non-lawyers would undermine ethical obligations to client loyalty and confidentiality, and open decision-making to the influence of investors or shareholders, not bound to the same rules of conduct as practicing attorneys. Currently, only the District of Columbia permits non-lawyer ownership of law firms.