Fee-Sharing with Non-Lawyers? California is Considering It

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The State Bar of California has convened a 23-member commission, the Task Force on Access Through Innovation of Legal Services, to consider how access to justice can be increased with technology.

One of the aspects that the task force will examine is the possibility of non-lawyer partnerships and fee sharing.

“Too many Californians needing legal services cannot afford an attorney or don’t have access for a number of other reasons,” Bar Executive Director Leah Wilson said in a statement. “By harnessing innovative approaches from the tech sector while maintaining our paramount commitment to protect the public, we hope to help bridge the gap. This is an exciting step for the State Bar.”

There will be three separate task force subcommittees that will conduct concurrent meetings. One of the subcommittees will study public protections, including defining the practice of law and the impact of the prohibition of the unauthorized practice of law on the use of artificial intelligence and other technological systems.

Consumer self-help legal research and information services, matching services, document production and dispute resolution will be reviewed by one subcommittee. A second subcommittee will examine rules and opinions on lawyer advertising and solicitation, non-lawyer partnerships, fee splitting, including compensation for client referrals, and other relevant rules. The third subcommittee will evaluate the possibility of permitting non-lawyer ownership or investment in businesses engaged in law practice to increase access to legal services.

Nevertheless, the California Bar expects the Task Force to balance the interests of increasing access to justice and protecting consumers in creating these new guidelines.

Read more about the Task Force here.

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