Page 80 - The Handbook - Law Firm Networks 2018
P. 80
The Handbook: Law Firm Networks
A network is different from a referral relationship because 1) attorneys can participate in a network group,
provided that the membership fee is fixed and based upon work generated; 2) the referral function is not its
sole purpose; 3) the lawyer does not accept clients based upon referrals from other members; 4) lawyers do
not solicit members; and 5) lawyers do not set up booths at network conventions.350
Networks publish and place directories online351 so that their members can be found. A portion of the budget
goes to promoting the directory. There are very specific rules regarding advertising. The American Bar
Association ABA Model Rule 7.2 applies to U.S. lawyers.
Rule 7.2 Advertising
a) Subject to the requirements of Rules 7.1 and 7.3, a lawyer may advertise services
through written, recorded or electronic communication, including public media.
(b) A lawyer shall not give anything of value to a person for recommending the lawyer’s
services except that a lawyer may: (1) pay the reasonable costs of advertisements or
communications permitted by this Rule; (2) pay the usual charges of a legal service plan
or a not-for-profit or qualified lawyer referral service (i.e., one that has been approved by
an appropriate regulatory authority); (3) pay for a law practice in accordance with Rule
1.17; and (4) refer clients to another lawyer or a non-lawyer professional pursuant to an
agreement not otherwise prohibited under these Rules that provides for the other person
to refer clients or customers to the lawyer, if (i) the reciprocal referral agreement is not
exclusive, and (ii) the client is informed of the existence and nature of the agreement.
(c) Any communication made pursuant to this rule shall include the name and office
address of at least one lawyer or law firm responsible for its content.
While lawyers have had very specific rules on directories, a network is not a directory but an association.
The directory is incidental to the network.
Lastly, there is the issue of listing network membership on a firm’s website or letterhead. ABA Model Rule
7.5 requires that lawyers avoid the implication that they practice in a partnership when this is not the case.
Listing membership in an organization is not directly covered. It appears that this would be permitted since
the network does not practice law, provided that this is clearly defined. They would want to provide a
description of their respective organizations, e.g., “Member of WSG – an Association of Independent
Professional Firms and Businesses.” 352
Accounting Associations and Networks
Unlike law firm networks, which are only regulated by ethics, accounting networks must be evaluated within
the framework of governmental regulations. The largest accounting networks are products of securities and
reporting requirements of their member firms. Accounting firms themselves are subject to many different
types of regulations as a result of their public services. While the accounting rules usually only indirectly
affect networks, the networks are directly affected when their members do not comply with the rules,
regulations, or laws.353
350 MARYLAND STATE BAR ASSOCIATION PRACTICE GUIDE 88-78 (1988).
351 Althof, Lawyer Advertising on the Internet, Practice and Ethical Considerations of Internet Advertising, 53 WASH. ST. BAR NEWS 32 (Dec. 1999).
352 World Services Group, a network of law, accounting, and investment banking firm, permits the members to place “World Services Group” on the
letterhead and other materials. However, the rules require that the precise words be used. Members must state: Member, World Services Group, an
Association of Independent Firms.” No other language is permitted.
353 Public Statement by SEC Chairman: Regulation of the Accounting Profession by Chairman Harvey L. Pitt,
www.sec.gov/news/speech/spch535.htm.
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A network is different from a referral relationship because 1) attorneys can participate in a network group,
provided that the membership fee is fixed and based upon work generated; 2) the referral function is not its
sole purpose; 3) the lawyer does not accept clients based upon referrals from other members; 4) lawyers do
not solicit members; and 5) lawyers do not set up booths at network conventions.350
Networks publish and place directories online351 so that their members can be found. A portion of the budget
goes to promoting the directory. There are very specific rules regarding advertising. The American Bar
Association ABA Model Rule 7.2 applies to U.S. lawyers.
Rule 7.2 Advertising
a) Subject to the requirements of Rules 7.1 and 7.3, a lawyer may advertise services
through written, recorded or electronic communication, including public media.
(b) A lawyer shall not give anything of value to a person for recommending the lawyer’s
services except that a lawyer may: (1) pay the reasonable costs of advertisements or
communications permitted by this Rule; (2) pay the usual charges of a legal service plan
or a not-for-profit or qualified lawyer referral service (i.e., one that has been approved by
an appropriate regulatory authority); (3) pay for a law practice in accordance with Rule
1.17; and (4) refer clients to another lawyer or a non-lawyer professional pursuant to an
agreement not otherwise prohibited under these Rules that provides for the other person
to refer clients or customers to the lawyer, if (i) the reciprocal referral agreement is not
exclusive, and (ii) the client is informed of the existence and nature of the agreement.
(c) Any communication made pursuant to this rule shall include the name and office
address of at least one lawyer or law firm responsible for its content.
While lawyers have had very specific rules on directories, a network is not a directory but an association.
The directory is incidental to the network.
Lastly, there is the issue of listing network membership on a firm’s website or letterhead. ABA Model Rule
7.5 requires that lawyers avoid the implication that they practice in a partnership when this is not the case.
Listing membership in an organization is not directly covered. It appears that this would be permitted since
the network does not practice law, provided that this is clearly defined. They would want to provide a
description of their respective organizations, e.g., “Member of WSG – an Association of Independent
Professional Firms and Businesses.” 352
Accounting Associations and Networks
Unlike law firm networks, which are only regulated by ethics, accounting networks must be evaluated within
the framework of governmental regulations. The largest accounting networks are products of securities and
reporting requirements of their member firms. Accounting firms themselves are subject to many different
types of regulations as a result of their public services. While the accounting rules usually only indirectly
affect networks, the networks are directly affected when their members do not comply with the rules,
regulations, or laws.353
350 MARYLAND STATE BAR ASSOCIATION PRACTICE GUIDE 88-78 (1988).
351 Althof, Lawyer Advertising on the Internet, Practice and Ethical Considerations of Internet Advertising, 53 WASH. ST. BAR NEWS 32 (Dec. 1999).
352 World Services Group, a network of law, accounting, and investment banking firm, permits the members to place “World Services Group” on the
letterhead and other materials. However, the rules require that the precise words be used. Members must state: Member, World Services Group, an
Association of Independent Firms.” No other language is permitted.
353 Public Statement by SEC Chairman: Regulation of the Accounting Profession by Chairman Harvey L. Pitt,
www.sec.gov/news/speech/spch535.htm.
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