Alternative Business Structures (ABS) is the innocuous label given to one of the most important, yet ignored, issues facing the legal profession today. It is the debate whether or not to change our ethics rules to allow non-lawyer corporate investors and managerial professionals to invest in new forms of law firms and share in the profits — something that is currently prohibited in 49 states. Proponents — often from large firms and academia — want to allow ABSs to spur additional capital investment in firms. They want to close the so-called “justice gap” in the legal services market by attracting additional capital investment to firms to develop more robust systems and technology so more people can obtain affordable legal services. Much of this new capital would flow to existing big firms to help them expand into consumer services such as family law, personal injury and bankruptcy, among others. Opponents — mostly solo and small firm lawyers — are concerned the profit motive of these non-lawyers will negatively impact professionalism.
Originally published September 27, 2016
Sign up for our free newsletter.
