Working with a coalition of other state bar associations, the New Jersey State Bar Association scored a key win for integrity in the legal system at the American Bar Association’s Annual Meeting in Chicago, by helping pass a measure that reinforces central principles of the profession and stands firm in opposing non-lawyer fee-sharing and law firm ownership by non-lawyers.
Appearing on behalf of New Jersey attorneys, NJSBA delegates to the ABA, including President Jeralyn L. Lawrence and President-Elect Tim McGoughran, joined thousands of colleagues in state bar associations around the country from Aug. 3-9. The annual meeting culminated with the House of Delegates, the ABA’s governing body of 583 delegates, which convened to vote on more than 30 agenda items.
Resolution 402, adopted by the house on Tuesday, was cosponsored by the NJSBA, along with the Illinois State Bar Association, the New York State Bar Association, as well as the ABA’s Tort Trial and Insurance Practice Section and Small Firm and General Practice Division. The coalition opposed sharing legal fees with non-lawyers and the ownership or control of firms by non-lawyers, practices the NJSBA believes are inconsistent with the core values of the legal profession.
There are currently some states, Utah and Arizona among them, that are experimenting with both concepts. The first non-lawyer owned law firm opened in Utah in 2021. The resolution was overwhelmingly passed by the House of Delegates, reaffirming the ABA’s 22-year-old policy as embodied in the Model Rules for Professional Conduct against legal fee-splitting and non-lawyer ownership.
Along with Lawrence and McGoughran, Past NJSBA Presidents Karol Corbin Walker and Thomas H. Prol, Secretary G. Glennon Troublefield and former ABA President Paulette Brown also lobbied for the resolution’s adoption.
Lawrence celebrated the resolution’s passage as a commitment that lawyers are and will continue to be the driving force behind the practice of law.
“It is crucial that lawyers, who are officers of the court, remain independent and free from the influence of those who would compromise our ethics, our loyalty to our clients and our clients’ best interests. It is equally important that the public is represented in their legal matters by a licensed attorney, a professional who is duty-bound and tethered by strict ethical rules,” she said.
For many years, the NJSBA has been a leading national voice opposed to non-lawyers having any control over law firms, as the concept presents ethical issues that are contrary to the notion of protecting members of the public and ensuring they receive the highest standards of legal representation.
Loosened restrictions on fee sharing and law firm ownership are often billed as access to justice measures, but could also allow for-profit businesses to compete to provide legal services in the U.S. Lawrence added that the NJSBA recognizes the need to provide high-quality, affordable legal services to avoid creating a two-tier justice system. To that end, the NJSBA is committed to matching lawyers who are able and willing to provide unmet legal needs, she said.
“On that front, and through other pro bono work, the NJSBA has been committed to finding ways to increase access to justice and will remain dedicated to that effort. We have a robust community of lawyers who want to help. We’ll tap those resources to combat the issues.” Lawrence said.
The resolution also reaffirmed an ABA policy encouraging innovation in the profession at the state level if the entities involve measure the effect of change.
NJSBA delegates were also asked to support seven additional resolutions that passed the House of Delegates. The NJSBA backed the resolutions to the extent that they advance a commitment to diversity and inclusion, eliminate bias in the legal profession and promote equal participation in the association, the profession and the justice system.
The successful resolutions include:
• Resolution 502–Urged legislation permitting courts to hear petitions that allow de novo hearings.
• Resolution 503–Advocated for the establishment and expansion of Offices of Equity.
• Resolution 507–Called for legislation remedying longstanding effects of structural racism.
• Resolution 510–Supported legislation to improve diversity, equity, and inclusion in the intellectual property ecosystem.
• Resolution 602–Adopted the revised American Bar Association Election Administration Guidelines and Commentary.
• Resolution 604–Adopted the ABA’s Nine Principles on Reducing Mass Incarceration.
• Resolution 606–Urged actions to address issues of racism in America’s civil and criminal justice systems.