Tennessee Supreme Court Maintains Ban on Nonlawyer Ownership of Law Firms
The Tennessee Supreme Court, in an opinion dated October 2, has decided to maintain the state's long-standing ethics rules banning nonlawyer ownership of law firms and the splitting of legal fees with nonlawyers, keeping outside investors, including private equity, shut out of law firm ownership, ABA Journal reported on October 21.
At this time, the court has not identified sufficient need or support for reforms related to nonlawyer ownership of law firms or fee sharing with nonlawyers, the court stated in its opinion, adding that it may revisit the topic in the future as additional data regarding the success of these reforms becomes available. The court had invited public comment on relaxing the rules, citing concern that the state lacked enough legal services, and received nearly 400 comments. The presidents of several county bar associations, including those of Cocke County, Grainger County, Jefferson County and Sevier County, wrote in opposition that opening the door to private equity is not the appropriate solution and that the justice gap should instead be addressed through increased support for legal aid organizations and incentives for attorneys to practice in underserved rural communities. So far, only Arizona and Utah have rewritten or relaxed their nonlawyer ownership rules statewide.
Published by GSM · USA (original Chinese edition)
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