Home

Jacoby & Meyers May Win Reconsideration of Non-attorney Ownership Issue
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Jacoby & Meyers’ lawsuit to include non-lawyers in law firm ownerships may get a new lifeline as indicated by interaction during oral argument before the 2nd U.S. Circuit Court of Appeals in New York. Jacoby & Meyers had appealed after Judge Lewis Kaplan, in March, dismissed the putative class action brought by the law firm. Kaplan had found that Jacoby & Meyers did not have locus standi to bring the case as it had failed to prove any harm caused to it by the New York state ethics rule.

The lawsuit by Jacoby & Meyers, filed in 2011, alleges that the New York Rule of Professional Conduct 5.4 – the rule that prevents non-lawyers from having ownership in a law firm – violates the law firm’s First Amendment rights, and is therefore unconstitutional.

The firm also mentioned that the rule cuts it off unfairly from private-equity funding and other sources of capital, and also that the said rule is too vague. During oral argument on Thursday, before the 2nd U.S. Circuit Court of Appeals the law firm also raised some other issues.

  
What
Where


However, during arguments, Judge John Walker asked the attorney for Jacoby & Meyers, “What if we were to remand it to Judge Kaplan, agreeing that there is no standing, but instructing him to allow you to amend the complaint to include these issues?” James Denlea, who is representing Jacoby & Meyers was quick to comment “That would be more than acceptable, your honor.”

The presiding justices from the state’s appellate division in the First, Second, Third and Fourth Departments, the justices who adopt and oversee rules of professional conduct for lawyers, are defendants in the lawsuit.

On Friday, the New York State Attorney General’s Office, however, argued that Jacoby lacked standing because there were many other statutes that prevented non-lawyer ownership in law firms, besides the Rule 5.4 that has been challenged by Jacoby & Meyers. Won Shin, for the NY Attorney General’s Office said, “The Judiciary law and the LLC Law prohibit what they are trying to do … Those other statutes are absolutely crystal clear.”

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!






 

RELEVANT JOBS

Law Clerk

USA-DC-Washington

C2 ALASKA, LLC Washington, DC   The Law Clerk II Journeyman- Division of Enforcem...

Apply now

Senior Business Development Manager

USA-DC-Washington

The Marketing Department at Arnold & Porter has an opening for a Senior Business Development Manager...

Apply now

Director of Administration

USA-VA-Arlington

Director of Administration (Communications/Litigation/Transactional Law Firm) Fletcher, Heald...

Apply now

Legal Executive Assistant

USA-VA-Arlington

Legal Executive Assistant (Communications/Copyright/Litigation)   Fletcher, Heald & Hi...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Attorney

USA-FL-Jacksonville

Jacksonville office of a BCG Attorney Search Top Ranked Law Firm seeks an attorney with 4-20 years o...

Apply Now

General Liability Associate Attorney

USA-GA-Atlanta

Atlanta office of a BCG Attorney Search Top Ranked Law Firm seeks general liability associate attorn...

Apply Now

Wealth Planning Senior Associate/Of Counsel

USA-NV-Reno

Reno office of a BCG Attorney Search Top Ranked Law Firm seeks wealth planning senior associate/of c...

Apply Now

SEARCH IN ARCHIVE

To Top