Advisory Opinion:
1143
Year Issued:
1988
RPC(s):
RPC 5.4(a)
Subject:
Division of fee with nonlawyer; lawyer as employee of non-profit that charges members for legal services
The Committee reviewed your inquiry concerning your conduct as an employee of a non-profit corporation which renders labor management services to member companies. In addition to providing legal services through you, the non-profit corporation apparently provides other professional services to its members. The Committee understood that you are paid a salary from the non-profit corporation which, as explained by you, "does not exceed the direct and indirect cost of my position." They further understood that the corporation intends to adopt a membership agreement "featuring a nominal uniform membership fee and charges billed at an hourly basis, for all professional services, including attorney services."
The Committee was of the opinion that the proposed arrangements violate RPC 5.4. The Committee did not view your role as a house counsel providing advice to the corporation, but rather providing legal services to the general public who pay them dues (fees) and are called "members." The Committee was of the opinion that whether the corporation is for profit or not for profit was immaterial. Member companies pay legal fees to the corporation who then passes them on to the lawyer as salary. The Committee was of the opinion that the lawyer was in every real sense sharing the fee with the corporation whether all direct and indirect costs were covered or not. The Committee was also of the opinion that this arrangement constituted the formation of a business relationship with non-lawyers to practice law.
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