Non-Lawyer Ownership Writing
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Arizona recently made history when it became the first state to allow non-lawyers to obtain partial ownership of law firms, previously prohibited by Ethics Rule 5.4. Effective January 1, 2021, these new measures will allow lawyers to partner with non-lawyers, opening up a wide range of opportunities for the public, investors and attorneys.
Referred to as an Alternative Business Structure (ABS), these new kinds of entities are the first in recent U.S. history to grant non-lawyers the right to invest in a business that supplies legal services. The direct result of an unanimous vote in the Supreme Court, these changes aim to make legal services more affordable and available to the general public. Through increased capital and streamlined operations that will result from non-lawyer firm ownership, legal entities will be able to lower their costs and advance technological innovation more rapidly. This will make it possible for critical legal services to be more widely accessible to the American public in the near future.
Although there are reasonable concerns that non-lawyer firm ownerships could result in less business for small firms, we believe attorneys will continue to be successful by adapting and transforming their practices to differentiate themselves through originality, authenticity, and local referrals. We feel these new measures will give businesses the opportunity to refine their strategies, establish trust and build long standing relationships. Non-lawyer law firm investment opportunities are already commonplace around other parts of the world such as Australia and the United Kingdom.
FAQ:
Is it possible for an Alternative Business Structure (ABS) to be exclusively owned by non-lawyers?
No, at least one owner must serve as the Compliance Lawyer and be registered as a licensed attorney in the state of Arizona.
What is the application process like for an ABS license?
Individuals interested in an ABS license will need to submit an application and undergo an investigation process. For detailed information about how to apply, please see Code section 7-209(E) and G(1).
What are the necessary disclosure requirements in regards to submitting an ABS application?
All applicants are required to disclose their identities on application forms if they meet the criteria for an “authorized person” stipulated in Code section 7-209. An “authorized person” is a non-lawyer with economic interest of at least 10% or more in the ABS entity, or is a licensed Arizona attorney with any amount of economic interest in the ABS. The application will also request disclosure of other details such as practice areas of the firm.
Who will decide whether an application is accepted or rejected?
An ABS Committee created by the Supreme Court will suggest approval or rejection of the application, and then the Supreme Court will choose to either accept or deny the license.
For more information, please visit the official website of the Arizona Judicial Branch.
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Kathy Hudson and Donato Giovanatto. Continues to go above and beyond the call of duty. Reaching out to the insurance company about the damage to the vehicle. Forcing them to take responsibility.
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Many companies talk about teamwork but few practice it. Many companies talk about an employee friendly environment but few actually provide it. At Phillips Law Group the foundation of our success is making sure we work as a team and that we work in an environment that allows everyone to thrive and be at their best every day. Our firm understands that in order for the client to have a great experience the people responsible for that client’s case must be given all the necessary tools and encouragement to make that happen. That’s the Phillips Way. As a manager of this firm in charge of several employees as well as directly affecting the client’s experience I take tremendous pride in saying we live by these premises and we work hard to build on them and make them better every day. This is an amazing place because it has amazing people working here!
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It’s an Honor and a Privilege to work for a company that cares about its employees and clients for 12 years. I’ve seen Management go out of their way to help someone whether it’s a personal matter or work related. I am also reminded of many occasions where a Client needed urgent help and we as a Team were able to get the person immediate assistance. At Phillips Law we make that happen through Teamwork and a dedication to our profession. I’ve had numerous jobs in several other fields, those were just jobs. This is a home. Many of us have been here for quite a few years, it feels like one large extended family.
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Jasmine helped me so so much I want to thank her ! And also Aaron , i was always scared after an accident , knowing I would have to deal with lawyers but not here . Luckily I’ve only been in 3 accidents but this time it was fast and easy . And i received all the treatments I needed to help me recover ! Thank you Jasmine and Aaron!
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I just wanted to thank Phillips law Group and Vanessa Rodriguez for all the help that she did for my daughter’s case. She was involved in her first accident and she needed the help to deal with these adjusters. Thank you again.
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Although my accident was fortunately not a major one, The Phillips Law Group AZ treated it as such. Their staff, specifically Mr Juan Roque was very professional, courteous and most importantly very informative. Mr Roque's attentive service was phenomenal and I highly recommend this firm!
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Phillips is the best!! Love all that they do to give back to the community and how much they help those who are experiencing homelessness. ❤️
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Phillips Law Group has a proven track record of success. Juan Roque, in particular, is integral to that. He works with integrity, compassion, and an undefeated optimism that makes him a valuable asset.
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A friend of mine recommended Phillips Law and I’m so grateful, because they were so wonderful, so down to earth, so professional. I felt like they were family.
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Sophia H is a pleasure to work with! Thanks for all you do.