091213 RIEO, 13-03

• Case Date: September 12, 2013
• Court: Rhode Island

13-03 Opinion No. 2013-03 Rhode Island Ethics Opinions Rhode Island Supreme Court September 12, 2013          FACTS          Individuals who are not lawyers have approached the inquiring attorney about being a part of a business enterprise. The nonlawyers want to start a consulting firm. The inquiring attorney states that the nonlawyers want to provide legal consulting, as well as business and various other forms of consulting services. Under the proposed arrangement, the inquiring attorney would be a partner in the consulting company to run its legal department. The inquiring attorney states that “[r]unning its legal department, in their eyes, includes providing legal advice to the company and its employees, providing legal services to clients of the company, and bringing in legal clients aside and apart from any of the other consulting departments.” The nonlawyers envision a law firm that is being operated by the inquiring attorney under the name of the consulting firm. The consulting firm would provide overhead expenses, including advertising, and in return, the inquiring attorney would “split” his/her fees with the firm, with the client’s consent. The attorney would be free to conduct his/her practice without oversight or pressures from the partners, and would be fully independent in providing legal advice to clients.          ISSUE PRESENTED          The attorney asks (1) whether this arrangement violates Rule 5.4 or other Rules of Professional Conduct; and (2) whether there is a way to arrange the relationship between lawyers and nonlawyers to prevent unethical behavior.          OPINION          (1) Yes, the proposed arrangement violates Rule 5.4 and Rule 5.5 of the Rules of Professional Conduct; and          (2) No.          REASONING          The proposed arrangement is prohibited by Rule 5.4. The rule does not permit fee-sharing; does not permit partnerships with nonlaweyrs if any of the activities of the partnerships consist of law practice; and does not permit lawyers to practice law with, or in the form of, a professional association in which nonlaweyrs have an interest or in which nonlawyers are corporate directors, officers, or have positions of similar responsibility. See also Art. II, Rule 10 of Rhode Island Supreme Court...