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RULE
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SUMMARY
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APPLICATION
TO MDP
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POSSIBLE
AMENDMENT
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| 1.6 | Protecting Confidentiality of Client Information |
Lawyers in MDPs must exercise greater care to reduce risk of losing the attorney-client privilege; implement screening and intake procedures that protect confidentiality; provide adequate warning and disclosure to clients about consultations with non-lawyer service providers | Add pertinent Comments to Rule 1.6 which apply to lawyers practicing law in MDPs |
| 1.7 (a) | Conflicts of Interest | MDP lawyers may not represent a client adverse to another client of the MDP firm unless he or she can adequately represent the client and the client consents after consultation; All clients of the MDP firm are "clients" of the lawyer for purposes of conflicts | Amend Rule 1.7 (a) or definitions of "firm" or "law firm" in the Rules of Professional Conduct |
| 1.7 (b) | Conflicts of Interest | MDP lawyers must not represent a client if the lawyer's own personal, business, financial or other interest may materially limit his or her independent professional judgment, unless the lawyer believes the client will not be adversely affected and the client consents after consultation | Lawyers in MDPs must disclose to clients any financial or business interest when referring a client to another service provider in the MDP. No amendment required, but a Comment may be helpful |
| 1.10 (a) | Imputed Disqualification | When a lawyer in an MDP is precluded from representing a client under Rules 1.7, 1.8 (c), 1.9, no other lawyer in the firm may knowingly represent the client | Amend Rule 1.10 (a).
lWith respect to an MDP, imputed disqualification of a lawyer applies if
the conflict in regard to the legal services the lawyer is providing is
with any client of the MDP, not just a client of a legal services division
of the MDP or of an individual lawyer member of the MDP. |
| 5.4 (a) | Professional Independence
of a Lawyer
A lawyer shall not share legal fees with a non-lawyer . . . . |
A lawyer may not share legal fees with a non-lawyer, except that a lawyer in an MDP may share legal fees with a non-lawyer provided that such arrangement shall not interfere with the lawyer's exercise of independent professional judgement. | Amend Rule 5.4 (a) to permit MDP lawyers to share fees with non-lawyers. |
| 5.4 (b) | Professional Independence
of a Lawyer
A lawyer shall not form a partnership with a non-lawyer if any of the firm's activities consist of the practice of law. |
A lawyer may form a partnership with a non-lawyer, subject to the Rules of Professional Conduct and provided that such arrangement shall not interfere with the lawyer's exercise of independent professional judgement. | Amend Rule 5.4 (b) to allow lawyers to work in an MDP in which lawyers have an ownership interest. |
| 5.4 (d) | Professional Independence
of a Lawyer
A lawyer shall not practice with or in the form of a professional corporation or association authorized to practice law for a profit, if: (1) a nonlawyer
owns any interest therein, except as provided in (a)(3) above, or except
that a fiduciary representative of the estate of a lawyer may hold the
stock or interest of the lawyer for a reasonable time during administration;
(2) a nonlawyer is a corporate director or officer thereof; or |
Lawyers may practice law in an MDP owned by non-lawyers who provide services other than legal services; passive investment in an MDP is prohibited. Lawyers may practice law in an MDP provided that, to the extent that non-lawyers hold positions of control, the lawyer is able to exercise independent professional judgment. | Amend Rule 5.4 (d) to allow lawyers to work in an MDP in which non-lawyers hold positions of control, ownership or management. |
| Rule 5.5 (a) (2) | Unauthorized Practice of Law | A lawyer may not work in an MDP if the lawyer knows that non-lawyers are performing tasks that constitute the unauthorized practice of law. | Add comment to Rule 5.5 |
| Rule 5.5 (b) | Unauthorized Practice of Law` | A lawyer may not work in an MDP which employs or is owned by a suspended or disbarred lawyer | Amend Rule 5.5 (b) |
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