New York State Bar Association Opinion says that NY lawyers are prohibited from working for out of state law firms owned by non-lawyers

Hello welcome to this JACPA Ethics Alert and blog which will discuss the very recent New York State Bar Association Opinion which states that a lawyer who primarily practices in New York cannot be an employee of an out-of-state or foreign firm owned or managed by non-lawyers, even if non-lawyer ownership is permitted in the jurisdiction where the law firm is established.  The opinion is New York State Bar Association Committee on Ethics Op. 901.

The opinion was issued on March 14, 2012 and cited NY Bar Rule 5.4 (a) (substantially similar to Florida Bar Rule 4-5.4(a)) which prohibits a lawyer from sharing fees with a non-lawyer, and NY Bar Rule 5.4(d) (substantially similar to Florida Bar Rule 4-5.4(e)), which prohibits a lawyer from practicing law for profit with an entity that includes a non-lawyer owner or member.  The NY opinion addresses the employment of NY lawyers in law firms from such countries as the United Kingdom and Australia, which permit ownership by non-lawyer investors, as well as in the District of Columbia, where non-lawyer employees are permitted have an equity interest in law firms.

Florida, New York, and the 48 other states prohibit non-lawyer ownership of law firms; however, this issue is being addressed on both the state and national level. The ABA’s Ethics 20/20 Commission is considering whether to recommend that the prohibition in the current ABA Model Rules should be dropped.  The Commission has requested comments on its December 2, 2011 discussion paper which proposes that non-lawyers who work at a law firm to own a limited, non-controlling share of that firm.  The link is here: ABA Ethics 20-20 firm structure position paper. The commission is asking for comments by Feb. 29 which will be provided to the ABA House of Delegates at a future meeting.  The Professional Ethics Committee of The Florida Bar (PEC) is also considering the proposals.

Bottom line: Non-lawyer ownership of law firms is another hot lawyer ethics topic and this opinion could certainly add fuel to that fire.  If you would like to comment, you can respond to the ABA Ethics 20/20 Commission or the PEC.

Be careful out there!

As always, if you have any questions about this Ethics Alert or need assistance, analysis, and guidance regarding these or any other ethics, risk management, or other issues, please do not hesitate to contact me.





My law firm focuses on review, analysis, and interpretation of the Rules Regulating The Florida Bar, advice and representation of lawyers in Bar disciplinary matters, defense of applicants for admission to The Florida Bar before the Board of Bar Examiners, defense of all Florida licensed professionals in discipline and admission matters before all state agencies and boards, expert ethics opinions, and practice management for lawyers and law firms.  If there is a lawyer or other Florida professional license involved, I can defend the complaint or help you get your license.

If you have any questions or comments, please call me at (727) 799-1688 or e-mail me at  You can find my law firm on the web at In addition to handling individual cases, matters, problems and issues for my clients, I also am on retainer to provide ethics advice to numerous lawyers and law firms throughout the state of Florida.  I also provide legal assistance and advice to numerous individuals and non-legal entities to help insure compliance with the law and rules related to UPL and other issues.

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Disclaimer:  this e-mail does not contain any legal advice and the comments herein should not be relied upon by anyone who reads it.

Joseph A. Corsmeier, Esquire

Law Office of Joseph A. Corsmeier, P.A.

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Clearwater, Florida 33759

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About jcorsmeier

Joseph A. Corsmeier is an “AV” rated attorney practicing in Clearwater, Florida. He concentrates his practice primarily in the areas of defense of attorney disciplinary matters before The Florida Bar, attorney admission matters before the Florida Board of Bar Examiners, and professional license and disciplinary matters before the Boards of the State of Florida. He provides expert analysis and opinion on conflict of interest and other attorney disqualification and legal malpractice issues and he testified as an expert in the Florida courts. He served as an Assistant State Attorney in the Sixth Judicial Circuit from 1986 to 1990 where he prosecuted felonies exclusively from June 1987, and as Bar Counsel for The Florida Bar’s Department of Lawyer Regulation from 1990 to 1998. He also practices in the areas of estate planning and Medicaid qualification, workers’ compensation, and labor law. Mr. Corsmeier is the author of numerous articles for various bar publications, has spoken at numerous local and statewide seminars on various topics, including ethics and professionalism, and was an instructor of legal ethics for paralegals at Rollins College until the Tampa campus closed. He received his undergraduate degree from Florida State University and his J.D. from Mercer University. He is admitted to practice in all Florida Courts, the Supreme Court of the United States, the United States Court of Appeals for the Eleventh Circuit, and the Middle District of Florida. He is a member of The Florida Bar, American Bar Association, the Association of Professional Responsibility Lawyers, and the Clearwater and St. Petersburg Bar Associations.
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