What guidelines govern a lawyer who participates in a group legal service plan, including a labor union's plan, under New York's 1975 Code amendments?
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This page answers the general question as of 1975. Ezel answers yours: whether it's allowed on your facts, under the current New York Rules of Professional Conduct, with citations.
Plain-English summary
The committee set out general guidelines for lawyer participation in group legal service plans following the liberalizing Code amendments New York adopted effective April 19, 1975 (the ABA had adopted them effective February 24, 1975). The amendments allow lawyers to participate in plans sponsored by "qualified legal assistance organizations," a category that includes specified legal aid and public defender offices, military assistance offices, bar-association lawyer referral services, and any bona fide organization that recommends, furnishes, or pays for legal services to its members or beneficiaries on stated conditions. They modified DR 2-101(B), DR 2-103, and DR 2-104(A)(3), and added EC 2-33, which encourages cooperation with such plans while preserving independence, integrity, competence, and devotion to individual clients.
The committee grouped the requirements into three categories. Category A applies to every lawyer cooperating with any plan: he may not give value to secure recommendations beyond the organization's usual dues, may not ask others to promote his private practice (except requesting referrals from a bar-association referral service), may accept only organization members or beneficiaries as referred clients, and must remain free to exercise independent professional judgment. Category B adds conditions for any bona fide organization other than certain legal aid, defender, military, or bar-referral offices: the organization derives no profit from the legal services, was not initiated to benefit a participating lawyer, treats the member or beneficiary (not the organization) as the client, leaves members free to select other counsel, and files an annual report with the disciplinary authority. Category C applies only to for-profit sponsors, which may use their selected lawyers only where the organization bears ultimate liability to the member (for example, an insurer).
Applying this to a labor union plan, the committee held that union-sponsored plans must meet all of the summarized requirements except Category C, which applies only to for-profit sponsors, assuming the union is a bona fide non-profit organization. The committee noted that, to the extent its earlier opinions (N.Y. State 76, 80, 98, 163, 172, 297, and 309) were inconsistent with the 1975 amendments, they were modified.
Currency note
This opinion was issued in 1975, before New York replaced the Code of Professional Responsibility with the Rules of Professional Conduct in 2009 (a lawyer's professional independence is now governed by Rule 5.4 and plan, referral, and solicitation arrangements by Rules 7.2 and 7.3). Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule, deadline, or requirement mentioned here.
Common questions
Q: Who counts as a "qualified legal assistance organization"?
A: Per the opinion, specified legal aid and public defender offices, military assistance offices, bar-association lawyer referral services, and any bona fide organization that recommends, furnishes, or pays for legal services to its members or beneficiaries on the stated conditions.
Q: What must any participating lawyer ensure?
A: Under this opinion, among other things, that he accepts only organization members or beneficiaries as referred clients, gives nothing of value beyond usual dues to secure recommendations, and remains free to exercise independent professional judgment for each client.
Q: Do union-sponsored plans face the same rules?
A: The committee held union plans must meet all the summarized conditions except the for-profit rule (Category C), assuming the union is a bona fide non-profit organization.
Background and rules framework
The opinion interprets the then-current New York Code's group-plan provisions as amended in 1975, EC 2-33 and DR 2-101(B), DR 2-103 (including (B), (C), and (D)), and DR 2-104(A)(3), with Judiciary Law section 495 noted as an external constraint. The current analogues are Rule 5.4 (professional independence), Rule 7.2 (advertising and plan arrangements), and Rule 7.3 (solicitation).
Citations and references
Rules of Professional Conduct:
- MR 5.4 (professional independence of a lawyer)
- MR 7.2 (advertising; plan and referral arrangements)
- MR 7.3 (solicitation of clients)
- NY EC 2-33; DR 2-101(B), DR 2-103, DR 2-103(B), (C), (D), DR 2-104(A)(3)
Statutes:
- N.Y. Judiciary Law section 495 (corporations and voluntary associations practicing law)
Other opinions modified:
- N.Y. State 76 (1968), 80 (1968), 98 (1969), 163 (1970), 172 (1970), 297 (1973), 309 (1973): modified to the extent inconsistent with the 1975 amendments
See also
- NY State Bar Op. 417: A group legal plan's fee schedule
- NY State Bar Op. 428: A prepaid legal service plan brochure
- NY State Bar Op. 426: A referral-service administrator taking its referrals
Source
- Landing page: https://nysba.org/opinion-416/
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