TBA Law Blog


Posted by: Stacey Shrader Joslin on Sep 10, 2021

A lawyer generally may invest passively in a law firm that includes nonlawyer owners in jurisdictions that permit such alternative business structures, even if the lawyer practices in a jurisdiction that does not permit such structures, the ABA announced this week. The ABA notes that several jurisdictions, including Arizona, the District of Columbia and Utah, have modified Rule 5.4 to permit nonlawyer ownership of firms and the sharing of legal fees. Formal Opinion 499, released Wednesday, advises that investment in these states is allowed so long as the lawyer remains cognizant of possible conflict of interests that could arise. Read more in this news release or article in the ABA Journal.