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AN ATTORNEY
MAY PARTICIPATE IN A PLAN FOR FURNISHING PREPAID LEGAL SERVICES.
PARTICIPATION IN SUCH A PLAN HOWEVER DOES NOT RELIEVE THE ATTORNEY
FROM COMPLIANCE WITH APPLICABLE PROVISIONS OF THE CODE OF PROFESSIONAL
RESPONSIBILITY. THE PARTICIPATING ATTORNEY SHOULD USE CAUTION TO
INSURE THAT THE PLAN DOES NOT:
(1) PERMIT
THE UNAUTHORIZED PRACTICE OF LAW.
(2) VIOLATE
CLIENT CONFIDENCES
(3) IMPAIR
THE PROFESSIONAL JUDGMENT OF THE ATTORNEY
(4) ENGAGE
IN IMPROPER SOLICITATION OF CLIENTS
(5) PERMIT
THE SHARING OF LEGAL FEES WITH A NON-ATTORNEY
OPINIONS
76-12 and 80-6 ARE HEREBY RESCINDED.
FACTS
The
Committee has received a number of inquiries as to whether an attorney
may participate in plans which furnish prepaid legal services. The
Committee has previously issued Opinions 76-12 and 80-6 pertaining
to this issue.
DISCUSSION
At one
time the Code of Professional Responsibility specifically addressed
the concept of prepaid legal services. These provisions have now
been eliminated.
DR 2-103(A)
of the Code of Professional Responsibility as adopted by the Nebraska
Supreme Court presently provides as follows:
A lawyer
shall not give anything of value to a person for recommending the
lawyer's services, except that a lawyer may pay the reasonable cost
of advertising or written communication permitted by these rules
and may pay the usual charges of a not-for-profit lawyer referral
service or other legal service organization.
The
above-cited provision was adopted from Rule 7.2(C) of the ABA Model
Rules of Professional Conduct. This Rule and the applicable Comment
section appear to permit the concept of prepaid legal service plans.
Attorneys
participating in prepaid legal service plans must comply with applicable
provisions of the Code of Professional Responsibility. Participating
attorneys should use caution to insure that the plan does not:
(1) permit
the unauthorized practice of law
(2) violate
client confidences
(3) impair
the professional judgment of the attorney
(4) engage
in improper solicitation of clients
(5) permit
the sharing of legal fees with a non-attorney
The
Committee has addressed only the ethical implications of prepaid
legal service plans. No attempt has been made to determine if specific
plans meet the requirements set forth in R.R.S. Neb. 44-3301 et
seq.
CONCLUSION
An
attorney may participate in a plan for furnishing prepaid legal
services. Participating attorneys however must comply with all provisions
of the Code of Professional Responsibility.
86-2
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