Goldberg Segalla partner Seth L. Laver’s in-depth article entitled “Accountant-Owned Law Firms Could Blur Ethical Lines,” has been published by the high-profile legal news service, Law360.

Vice Chair of the firm’s Accountants Professional Liability practice, Seth explores an emerging trend – non-attorney-based entities seeking to own and operate law firms in the United States.

Although permitted in other countries, the American Bar Association’s Model Rules of Professional Conduct generally prohibit non-attorneys from owning law firms due to ethical concerns regarding conflict-of-interest principles. Seth shares concern regarding the ability to ensure the ethical and procedural rules governing the practice of law are applied fairly and with the client’s best interest in mind.

“A far cry from regulating attorneys, enforcing and supervising the practice of law by non-attorneys could prove challenging,” he said. “Attorney oversight or, more to the point, the supervision of the practice of law, is of paramount concern not only to control and guide the practice of law, but the governing rules also help foster a sense of trust and transparency between practitioners and the public.”

Specifically, Seth looks to Arizona and Utah – two states that have been at the forefront of relaxing the standard of law firm ownership. In August 2020, the Arizona Supreme Court voted to enact changes that could revolutionize the public’s access to legal services, as the Court sought to “improve access to justice and to encourage innovation in the delivery of legal services.” As a result, Arizona now permits non-attorney “legal professionals” to provide limited legal services to clients – a framework that Utah has also initiated to some degree.

Big Four accounting firm KPMG LLP has taken a major step in attempting to own and operate a law firm by applying to the Arizona Supreme Court, representing the first accounting firm to take advantage of these laws.

“It may prove particularly difficult to monitor the practice of law and accounting if the two were to increasingly conjoin, especially as KPMG or others seek to be viewed as a one-stop shop,” Seth said. “Critically, however, while there is some overlap, the practice of law and accounting are different, particularly with regard to the distinct ideologies that come into play…If change is imminent, the distinction between the practice of law and accounting may continue to blur. It follows that professionals in either field may find it more difficult to maintain and set client expectations.”

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MORE ABOUT GOLDBERG SEGALLA’S SETH L. LAVER:

Vice Chair of Goldberg Segalla’s Accountants Professional Liability practice, Seth devotes the majority of his practice to defending professionals, primarily representing accountants, attorneys, directors and officers, and design professionals. A trial attorney for nearly 20 years, Seth is admitted to practice in Pennsylvania, New Jersey, and New York, but regularly counsels and represents professionals throughout the United States.