The question of whether to allow non-lawyers to invest or have an ownership interest in a law firm has been debated for more than 90 years in the United States. In fact, the debate continues even today.
In the U.S., the rules governing an attorney’s professional conduct are established by each of the 50 states. However, when each state establishes rules for attorney conduct and law firm ownership, they invariably adopt the Model Rules of Professional Conduct issued by the American Bar Association. It is important to recall that the ABA is a voluntary bar association with no governing authority over attorneys or even its members. Accordingly, in establishing standards for attorney conduct, each state must decide whether or not to adopt the ABA’s recommended rules.