May a lawyer form an association with or for a credit collection agency?
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This page answers the general question as of 1960. Ezel answers yours: whether it's allowed on your facts, under the current Florida Rules of Professional Conduct, with citations.
Plain-English summary
A member asked about forming an association for a credit collection agency. The committee found no objection, so long as he rigidly adhered to the requirements of the Canons of Ethics that his law practice be entirely disassociated from the separate business, so long as there was no form of advertisement relating his law practice to the agency, and so long as the agency was not used as a means of channeling legal matters to him.
Currency note
This opinion was issued in 1960, before The Florida Bar's adoption of the 2006 revisions to the Rules of Professional Conduct. It applied former Canon 27 of the Canons of Professional Ethics; a lawyer's conduct of a separate business and the use of that business to feed legal work are now addressed by Rules 4-5.4 and 4-5.7 of the Rules Regulating The Florida Bar (Model Rules 5.4 and 5.7), with advertising governed by the Rule 4-7 series. Treat this page as historical context, not current guidance. Verify against the current rules before relying on any specific requirement mentioned here.
Common questions
Q: Could the lawyer be associated with a collection agency at all?
A: Yes. The committee found no objection, provided his law practice was entirely separated from the agency business.
Q: What conditions did the committee attach?
A: No advertisement could relate his law practice to the agency, and the agency could not be used as a means of channeling legal matters to him.
Background and rules framework
The opinion applied former Canon 27 of the Canons of Professional Ethics. A lawyer's conduct of a separate business and the use of that business to feed legal work are now addressed by Rules 4-5.4 and 4-5.7 of the Rules Regulating The Florida Bar (Model Rules 5.4 and 5.7), with advertising restrictions in the Rule 4-7 series. The committee's analysis turned on keeping the law practice separated from the agency and on the agency not feeding legal work to the lawyer.
Citations and references
Rules of Professional Conduct:
- Canon 27 [Canons of Professional Ethics; see current Rules 4-5.4, 4-5.7]
See also
- FL Bar Ethics Op. 61-13: A Lawyer's Interest in a Bond Fiscal-Agent Corporation
- FL Bar Ethics Op. 60-37: A Branch Office in a Broker's Suite
- FL Bar Ethics Op. 63-12: Lawyer in an Independent Outside Business
Source
- Landing page: https://www.floridabar.org/etopinions/etopinion-59-41/
- Original PDF: https://www-media.floridabar.org/uploads/2017/04/FL-Bar-Ethics-Op-59-41-1.pdf
Original opinion text
Reproduced from the official source for research purposes. The linked source is authoritative.
FLORIDA BAR ETHICS OPINION
OPINION 59-41
May 17, 1960
Advisory ethics opinions are not binding.
It is not improper for a lawyer to form an association for a credit collection agency so long as he adheres to the requirement that his law practice be disassociated from the separate business.
Canon: 27
Chairman Holcomb stated the opinion of the committee:
A member of The Florida Bar submits an inquiry regarding his forming an association for a credit collection agency. We find no objection so long as he rigidly adheres to the requirements of the Canons of Ethics that his law practice be entirely disassociated from a separate business and so long as there is no form of advertisement which relates his law practice with the agency and so long as the agency is not used as a means of channeling legal matters to him.
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