Advisory Opinion:
2009
Year Issued:
2003
RPC(s):
Subject:
trade names, silent partner in firm, renumeration of nonlawyers by profit
The inquirer asked the following questions:
1. May a law firm adopt a trade name that would appear to the public to consist of the surnames of individual lawyers where in fact none of the lawyers who are now practicing, or have ever practiced with the firm, has or had any of the surnames?
2. May a lawyer share in the net revenues or profits of a law firm if he does not do any legal work for the firm? In other words, may a lawyer be a “silent partner” in a law firm?
3. May a law firm hire, at arm’s length, an entity composed of nonlawyers to provide administrative and business consulting services and base the remuneration of the entity partly or wholly on profits realized through the law firm’s improved administration and more efficient practice of law?
The committee responded as follows to each question:
1. Because there is a substantial risk of the public being misled, a law firm may not adopt a trade name that would appear to the public to consist of the surnames of individual lawyers, e.g., John Smith, where none of the lawyers who are now practicing, or have ever practiced, with the firm, has or had any of the surnames.
2. A lawyer may not share fees of a law firm who is not now an active practicing member of the firm or has not done so in the past, but is now only contributing capital.
3. If a law firm hires an entity composed of nonlawyers that provides administrative and business consulting services, the law firm may not base the remuneration of the entity partly or wholly on increased fee income.
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