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January 30th, 2014
Business Arrangements with Non-Legal Entities
In the current legal and economic climate, some lawyers are considering business arrangements with non-legal entities. A new ethics opinion by the Committee on Professional Ethics of the New York City Bar Association discusses important ethical issues raised by such business ventures. According to the opinion, lawyers should ask themselves several questions before entering into a relationship with a non-legal business, including:
- Does the arrangement constitute improper fee-splitting?
- Does the non-legal business entity engage in the unauthorized practice of law?
- Does the payment structure amount to payment of an impermissible referral fee?
The ABA/BNA Lawyers' Manual on Professional Conduct covered the development on page 1 of its current issue. We hope you find the article and the opinion helpful.
Nicole Hyland, a partner in the Frankfurt Kurnit Legal Ethics & Professional Responsibility Group, chairs the New York City Bar Association's Committee on Professional Ethics.
If you have any questions about business arrangements with non-legal businesses, or any other legal ethics matters, please contact Nicole Hyland at (212) 826 5552 or firstname.lastname@example.org, Ron Minkoff at (212) 705 4837 or email@example.com or any other member of the Frankfurt Kurnit Legal Ethics and Professional Responsibility Group.
Other Legal Ethics and Professional Responsibility Alerts
California Supreme Court Holds that Conflict Invalidates Firm’s Engagement Letter But Says Firm Still May be Able to Get Paid
Last week, the California Supreme Court issued its decision in Sheppard, Mullin, Richter & Hampton, LLP v. J-M Manufacturing Co., Inc., a decision which lawyers and law firms anxiously awaited for months. Read more.
September 4 2018
N.Y. State Bar Ethics Committee Takes On Avvo Legal Services, Says Model Violates Ethics Rules
Recently the New York State Bar Ethics Committee issued a pair of opinions about the limitations on a lawyer's ability to take advantage of certain on-line legal marketing services. Read more.
August 31 2017
Non-Party Has Sufficient Interest to Disqualify Law Firm from Second Circuit Case
At the request of a non-party, the US Court of Appeals for the Second Circuit recently disqualified the law firm BakerHostetler LLP ("Baker") from representing its client Prevezon Holdings Ltd. ("Prevezon"). Read more.
October 24 2016