Ethical Issues for Alternative Business Structures and Management Services Organizations

This CLE webinar will provide guidance to attorneys on the ethical considerations for the practice of law as alternative business structures (ABS) and management services organizations (MSO). The panel will discuss the structures of ABS and MSO, how lawyers participate in these organizations, co-counsel arrangements, negotiating MSO contracts, and key ethical issues lawyers must consider when working with an ABS or MSO.

Although more prevalent in other professional practices, investments in law firms by non-lawyers and private equity firms via ABS or MSO have been increasing in recent years. Lawyers involved with either of these structures subject themselves to substantial ethical issues and must ensure compliance with ABA Model Rules and specific regulations within states where such structures are allowed.

ABA Model Rule 5.4 and many state laws and rules prohibit non-lawyer fee-sharing and ownership of law firms. However, this restriction and potential ethical risks for lawyers have not stopped the progression of these structures in some states, allowing ABS where there is direct ownership and fee sharing by non-lawyers, and the use of MSO, permitting non-lawyer participation in non-legal parts associated with a law practice.

Lawyers must understand the ABA Model Rules, state law and rules, and ethical risks associated with ABS and MSO to properly assess participating in either of these structures.

Listen as our panel discusses the structures of ABS and MSO, how lawyers participate in these organizations, and key ethical issues lawyers must consider when working with an ABS or MSO.