Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Is Non-Lawyer Ownership of Law Firms Coming Soon?
Ask yourself whether the following scenario is fact or fiction in today's U.S. legal market. A large investment firm with $3 billion in assets acquires a U.S. plaintiffs' personal injury law firm after the law firm is listed on the U.S. Stock Exchange. Founded in 1935, the law firm specializes in workers' compensation claims, personal injury cases and class actions. The investment fund's acquisition of the law firm provides the law firm with "a stable capital base and a supportive operating environment," according to the law firm's press release. The fund "looks forward to working with [the law firm's] strong team of lawyers whom we are keen to retain, support and incentivize," according to the fund. The scenario is fact, not fiction. But it's a scenario that happened earlier this year in Australia with Australian law firm Slater Gordon, not in the United States. At least, not yet.
Surely, this nightmare scenario of hedge funds or other non-lawyer entities owning and controlling law firms could never happen in the United States. Don't be so sure. Powerful forces are now pushing regulators in the direction of non-lawyer ownership of law firms in the United States. Some of the forces are completely well-intentioned, but some of the forces are not so well-intentioned. The well-intentioned forces are motivated primarily by access to justice considerations. The not so well-intentioned forces are motivated primarily by crass financial considerations. The parties motivated by financial considerations include hedge funds, accounting firms, insurance companies and corporations seeking cheaper legal services, among others.
There is no legitimate question at all that the access-to-justice needs of low-income Americans are not being met. In one study, America ranked 30 out of 126 countries in meeting the access-to-justice needs of its citizens, tied with Poland and Romania. The only legitimate question is how to bridge the gap between access-to-justice needs and the availability of affordable legal services to meet those needs.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
How Secure Is the AI System Your Law Firm Is Using?
In a profession where confidentiality is paramount, failing to address AI security concerns could have disastrous consequences. It is vital that law firms and those in related industries ask the right questions about AI security to protect their clients and their reputation.
COVID-19 and Lease Negotiations: Early Termination Provisions
During the COVID-19 pandemic, some tenants were able to negotiate termination agreements with their landlords. But even though a landlord may agree to terminate a lease to regain control of a defaulting tenant's space without costly and lengthy litigation, typically a defaulting tenant that otherwise has no contractual right to terminate its lease will be in a much weaker bargaining position with respect to the conditions for termination.
Pleading Importation: ITC Decisions Highlight Need for Adequate Evidentiary Support
The International Trade Commission is empowered to block the importation into the United States of products that infringe U.S. intellectual property rights, In the past, the ITC generally instituted investigations without questioning the importation allegations in the complaint, however in several recent cases, the ITC declined to institute an investigation as to certain proposed respondents due to inadequate pleading of importation.
The Power of Your Inner Circle: Turning Friends and Social Contacts Into Business Allies
Practical strategies to explore doing business with friends and social contacts in a way that respects relationships and maximizes opportunities.
Authentic Communications Today Increase Success for Value-Driven Clients
As the relationship between in-house and outside counsel continues to evolve, lawyers must continue to foster a client-first mindset, offer business-focused solutions, and embrace technology that helps deliver work faster and more efficiently.