Charlotte Injury Lawyers Blog
Charlotte Personal Injury Attorney Matthew R. Arnold of Arnold & Smith, PLLC answers the question “Should I trust the insurance adjuster?”
The American Bar Association—prodded by American businesses like Legal Zoom, Inc.—is studying the issue of non-lawyer ownership of law firms.
In the United States, lawyers are generally prohibited from “creating, owning or managing law firms” with non lawyers. Multidisciplinary practices—or those practices that combine the provision of legal services with non-legal services—are greatly restricted.
This is not the case in the United Kingdom, the fount from which the United States’ Common-Law legal tradition sprang. In the United Kingdom, restrictions of non-lawyer ownership interests in law firms have largely been eliminated, leading to the development of so-called “alternative business structures.”
The United Kingdom lifted its restrictions on alternative business structures in 2007. Since then, by most accounts, it has encouraged the establishment of alternative business structures for largely the same reason that they are prohibited in the United States: for the benefit of clients.
The 2007 Legal Services Act—which lifted the prohibition against alternative business structures—was passed after a study of the legal industry in the United Kingdom revealed a glut of unmet but nonetheless needed legal services. The new Act focused on the functions of advocates as opposed to the identity of law-firm owners, restricting the performance of certain activities to authorized lawyers. Those activities include the right to appear as an advocate in court, to certify documents and transactions, to probate estates, administer oaths, cause the consummation of a transfer of real property and to conduct litigation.