Arizona approved reaching access-to-justice reforms that allow non-lawyer ownership of a law firms and establish new fee-sharing guidelines.
On August 27th, 2020, The Arizona Supreme Court unanimously ordered the elimination of Rule 5.4, the rule that prohibits a lawyer from forming a partnership with a nonlawyer or otherwise sharing fees. The order outlines a new form of law practice, referred to as an “alternative business structure” (ABS), that permits fee-sharing between lawyers and non-lawyers.
The court also approved Rule 31.1(c), which states that “[a]n entity that includes nonlawyers who have an economic or decision-making authority … may employ, associate with, or engage a lawyer or lawyers to provide legal services, to third parties…”
By creating alternative business opportunities and the ability for “legal paraprofessionals” to provide legal documents and services to clients, the court noted that the changes to the rules should both protect the public and increase access to legal services. The order becomes effective on January 1st, 2021.
Read the full order here.
