Minutes

June 6, 2000

In attendance: Mike Blackburn – Co-chair, Ray Westergard – Co-chair, Val Antczak, Brent Armstrong, Cindy Crass, George Harris, Mark Lehman, & Toby Brown.

I Mike Blackburn gave updates on national MDP events. The ABA MDP Commission released its revised recommendation proposal in May. The State Bar of Arizona Approved the ABA Recommendations. And Wyoming and Idaho have formed MDP committees

Mike then asked for comments on the minutes of the May 5, 2000 meeting. Theses minutes were approved.

II Mike suggested we continue moving through the ABA recommendations. George Harris suggested we instead move straight to the newer recommendations. This was agreed to.

Recommendation # 1 was read by Mike: “Lawyers should be permitted to share fees and join with nonlawyer professionals in a practice that delivers both legal and nonlegal professional services (Multidisciplinary Practice), provided that the lawyers have the control and authority necessary to assure lawyer independence in the rendering of legal services. "Nonlawyer professionals" means members of recognized professions or other disciplines that are governed by ethical standards.”

It was noted that this new approach moved away from the 51% ownership control model. Discussion followed on how ownership does impact ‘control’ however, the ultimate control and responsibility resides with the individual lawyer. Val Antczak commented that this approach could lead to the Big 5 buying up law firms. Mike noted that the Banks and insurance companies would be a bigger concern, except that recommendation #5 prohibits passive ownership. Mike also noted that 11 state supreme courts have already ruled that work down for a company’s clients is not UPL, therefore the law in some respects has already moved past us. Toby noted that any limitations placed in a new rule schema would only inhibit lawyers, but not those competing with them.

Val noted that recommendations should focus on core values and not necessarily proscribe specific behaviors. George express concerned about sending an “anything goes” message. Discussion followed on the impact of these issues on clients.

Mike read recommendation #2: “This Recommendation must be implemented in a manner that protects the public and preserves the core values of the legal profession, including competence, independence of professional judgment, protection of confidential client information, loyalty to the client through the avoidance of conflicts of interest, and pro bono publico obligations.”

Val suggested that #1 and #2 were acceptable, but expressed concerns that #3-5 were too specific and possibly restrictive. Val motioned for the approval of #1 and #2. Approved unanimously.

#3-5 were presented:

3. Regulatory authorities should enforce existing rules and adopt such additional enforcement procedures as are needed to implement these principles and to protect the public interest.

4. The prohibition on nonlawyers delivering legal services and the obligations of all lawyers to observe the rules of professional conduct should not be altered.

5. Passive investment in a Multidisciplinary Practice should not be permitted.

Re: #4, Val suggested this language could be interpreted as ‘status quo.’ Discussion followed on the reasonableness of #3 and 4.

Re: # 5, Cindy Crass suggested that minority passive investment might be acceptable. Discussion followed on the impacts of passive investment. Toby commented that passive investment could positively impact clients. With passive investment’s approved, law firms would have access to capital to improve client service, via technology or other means.

Val motioned to strike #3-5. Discussion followed on the need to further analyze #3-5. It was agreed to post-pone action on these items.

III Administrative Business.

Mike noted the need to set future meetings. The next meeting was set for June 19^th at 7:30 a.m. Mike and Toby will send out notices for future dates once they are set.

Mike then covered rule review and recommendation assignments for committee members. The following were confirmed:

Mark Lehman – Rules 5.4

George Harris – Rule 1, excepting 1.6

Brent Armstrong – Rule 5.3

Cindy Crass – Rule 7 (Communications and Disclosure)

Val Antczak – Rules 7.1-3 & 7.5

Mike Blackburn – 1.6

Jane Marquardt – TBD

IV Meeting concluded at 9:00 a.m.

The Next Meeting is set for:

June 19, 2000, 7:30 to 9:00 a.m.

Utah Law & Justice Center

(Bagels will be served)

Last Update: 09/04/02