Bar Association takes stance on MDP issue

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Multidisciplinary practice would allow lawyers to partner with nonlawyer professionals|ret||ret||tab|

Multidisciplinary practice, or MDP, is an issue that is tearing its way through organized bars and business communities throughout the country. |ret||ret||tab|

Haven't heard of MDP yet? You will. MDP is becoming a hot topic one that individual lawyers feel strongly about.|ret||ret||tab|

This primer is designed to acquaint you with the concepts behind MDP and the many different perspectives that lawyers bring to the issue. |ret||ret||tab|

What is MDP?|ret||ret||tab|

The multidisci-plinary practice is a type of business entity that would allow lawyers to partner with nonlawyer professionals in other disciplines. Lawyers and nonlawyers would share fees. Accounting firms would probably be the most likely professionals to team up with lawyers. However, social workers, physicians, architects and other professionals might also become partners in an MDP.|ret||ret||tab|

Who could own an MDP?|ret||ret||tab|

Traditional law firms could acquire nonlawyer businesses, and nonlawyer businesses could acquire law firms. The American Bar Association's proposed regulations would prohibit passive investment in MDPs. Only those professionals who comprised the work force of an MDP could share in its ownership.|ret||ret||tab|

What type of services could an MDP provide? |ret||ret||tab|

MDPs could provide legal services plus whatever additional services would complement the firm. |ret||ret||tab|

A lawyer, accountant and financial planner might go into business together to provide services to older people interested in estate planning. |ret||ret||tab|

A psychologist, mediator and lawyer might form an MDP to address the needs of divorcing couples.|ret||ret||tab|

Does this mean that nonlawyers would be authorized to provide legal services?|ret||ret||tab|

No. Under no circumstance would nonlawyers be practicing law. In an MDP, only lawyers would deliver legal services.|ret||ret||tab|

How much of an impact could MDPs have on the practice of law?|ret||ret||tab|

Many lawyers who are familiar with the ideas behind MDPs believe that the multidisciplinary practice of law is the most important issue to face the legal profession in a century. |ret||ret||tab|

Some lawyers are strongly opposed to MDPs; some strongly support the idea; many are uncertain.|ret||ret||tab|

Can't lawyers work with other professionals without forming MDPs?|ret||ret||tab|

Yes. Lawyers are currently permitted to employ others and may own companies employing other professionals. |ret||ret||tab|

Lawyers may also retain an unaffiliated professional with the client's consent. |ret||ret||tab|

But fee sharing and entering into partnership with nonlawyers to deliver legal services is prohibited. |ret||ret||tab|

Who would benefit from this change?|ret||ret||tab|

Proponents of MDPs believe that clients and lawyers would both benefit. According to this view, clients would receive the advantage of one-stop shopping and would have the best of both worlds expert, competent legal advice in addition to expert accounting, tax or other advice in areas outside the realm of the lawyer.|ret||ret||tab|

Could MDPs have a negative impact on clients and lawyers?|ret||ret||tab|

Lawyers who are opposed to MDPs believe that the arrangement may be bad for the client and lawyer. They note that the financial interests of the firm could take precedence over the client's best interest, and unneeded services could be thrust at the client. |ret||ret||tab|

Also, some lawyers believe that lawyers not associated with an MDP could have a very difficult time competing against MDPs. |ret||ret||tab|

What is perceived to be the No. 1 problem with MDPs?|ret||ret||tab|

Although some lawyers have concerns about the financial impact of MDPs on the legal community and clients, the issue that stirs the most feeling in lawyers opposed to MDPs isn't related to money. Most lawyers who oppose MDPs do so because they believe that the arrangement will subvert the lawyer-client relationship. These lawyers believe that MDPs are inconsistent with the legal profession's core values.|ret||ret||tab|

What are the core values of the legal profession?|ret||ret||tab|

Competency, professional independence of judgment, the protection of confidential client information, and loyalty to the client through the avoidance of conflicts of interests are core values.|ret||ret||tab|

How would MDPs be monitored to prevent or detect circumstances where the client's best interests are compromised?|ret||ret||tab|

The ABA Commission recommends that new procedures be developed to regulate the delivery of legal services through MDPs. |ret||ret||tab|

The commission proposes that the highest court in each jurisdiction in which an MDP operates would oversee the regulation of the MDP. |ret||ret||tab|

Each MDP would submit documentation and, possibly, would be audited. The MDPs would pay a fee to cover the cost of regulation. |ret||ret||tab|

What about the nonlawyers in an MDP? Who would regulate their behavior?|ret||ret||tab|

Many different nonlawyer professionals have codes of conduct particular to their professions which they follow. In addition, a lawyer in an MDP that delivers legal services would be responsible for ensuring that the conduct of nonlawyers is compatible with the professional obligations of the lawyer.|ret||ret||tab|

What is the Missouri Bar's position on MDPs?|ret||ret||tab|

The Missouri Bar is still considering the issue, but it has gone on record as opposing changes in the Rules of Professional Conduct that would permit MDPs to form. The bar has sent its recommendation to the American Bar Association, indicating its opposition. |ret||ret||tab|

In addition, after extensive discussion and consideration about MDPs, the Missouri Bar has recommended to the ABA that if it should change its Model Rules to permit MDPs, that the client's interests "should be paramount, and there should be recognition that MDPs can put the client's interests at risk, and that unsophisticated clients may be more at risk than sophisticated ones. In any proposal for MDPs, consideration should be given to additional protection for consumers, including more detailed disclosure and more explicit waivers of potential conflict of interest."|ret||ret||tab|

(The preceding article was provided by the Missouri Bar Association.)|ret||ret||tab|

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