The D.C. Bar’s Global Legal Practice Committee is studying changing models for the delivery of legal services, including alternative legal business models and multidisciplinary practice. Nonlawyer
Related initiatives are currently underway in Arizona, New Mexico, Illinois, and Utah.
D.C. is currently the only jurisdiction that allows lawyers to partner with nonlawyers in limited circumstances. D.C.’s Rule 5.4(b) allows attorneys to partner with nonlawyers provided the business’ sole purpose is to provide legal services. Additionally, all persons having managerial authority or holding a financial interest must agree to abide by D.C.’s Rules of Professional Conduct. The managerial lawyers must also agree to exercise supervision over the nonlawyers as if they were lawyers in accordance with the Rule. Finally, all three of the foregoing requirements must be memorialized in writing.
Rule 5.4 of the ABA Model Rules of Professional Conduct and the equivalent rule in all of the other states prohibits fee sharing and bans partnerships with nonlawyers if any of their activities include the practice of law.
The D.C. Bar is seeking data on the impact of its version of Rule 5.4 and asking for public feedback and on the potential benefits of permitting law firms to obtain outside investment and otherwise partner with nonlawyers. The public comment period is to close on March 9, 2020.
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