Rule 6.3 - Legal Services Organizations and Lawyer Referral Services(a) A lawyer may serve as a director, officer, or member of a legal services organization, apart from the law firm in which the lawyer practices, notwithstanding that the organization serves persons having interests adverse to a client of the lawyer. The lawyer shall not knowingly participate in a decision or action of the organization: (1) if participating in the decision or action would be incompatible with the lawyer's obligations to a client under Rule 1.7; or(2) where the decision or action could have a material adverse effect on the representation of a client of the organization whose interests are adverse to a client of the lawyer.(b) A lawyer may participate in and pay the usual charges of a not-for-profit lawyer referral service that recommends legal services to the public if that service: (1) maintains registration as a qualified service with the State Bar, under such rules as may be adopted by the State Bar, consistent with these rules;(2) is operated in the public interest for the purpose of referring prospective clients to lawyers; pro bono and public service legal programs; and government, consumer or other agencies that can best provide the assistance needed by clients, in light of their financial circumstances, spoken language, any disability, geographical convenience, and the nature and complexity of their problems;(3) is open to all lawyers licensed and eligible to practice in this state who maintain an office within the geographical area served, and who:(i) meet reasonable and objective requirements of experience, as established by the service;(ii) pay reasonable registration and membership fees not to exceed an amount established by the State Bar to encourage widespread lawyer participation; and(iii) maintain a policy of errors and omissions insurance, or provide proof of financial responsibility, in an amount at least equal to the minimum established by the State Bar;(4) ensures that the combined fees and expenses charged a prospective client by a qualified service and a lawyer to whom the client is referred not exceed the total charges the client would have incurred had no referral service been involved; and(5) makes no fee-generating referral to any lawyer who has an ownership interest in, or who operates or is employed by, the qualified service, or who is associated with a law firm that has an ownership interest in, or operates or is employed by, a qualified service.(c) The requirements of subrule (b) do not apply to(1) a plan of prepaid legal services insurance authorized to operate in the state, or a group or prepaid legal plan, whether operated by a union, trust, mutual benefit or aid association, corporation or other entity or person, which provides unlimited or a specified amount of telephone advice or personal communications at no charge to the members or beneficiaries, other than a periodic membership or beneficiary fee, and furnishes to or pays for legal services for its members or beneficiaries;(2) individual lawyer-to-lawyer referrals;(3) lawyers jointly advertising their services in a manner that discloses that such advertising is solely to solicit clients for themselves; or(4) any pro bono legal assistance program that does not accept fees from lawyers or clients for referrals.(d) The State Bar or any aggrieved person may seek an injunction in the circuit court to enjoin violations of subrule (b). In the event the injunction is granted, the petitioner shall be entitled to reasonable costs and attorney fees.(e) A lawyer may participate in and pay the usual charges of a plan or organization defined in subrule (c)(1), if that plan or organization:(1) has filed with the State Bar of Michigan a written plan disclosing the name under which it operates; the name, address, and telephone number of its chief operating officer; and the plan terms, conditions of eligibility, schedule of benefits, subscription charges and agreements with counsel;(2) updates its filings within 30 days of any material change;(3) in January of each year following its inception files a statement representing that it continues to do business under the terms and conditions reflected in its filings as amended to date. These filing requirements shall not apply to not-for-profit legal aid associations.
Mich. R. Prof'l. Cond. 6.3
Amended effective 5/1/2024.Comment:
Lawyers should be encouraged to support and participate in legal service organizations. A lawyer who is an officer or a member of such an organization does not thereby have a client-lawyer relationship with persons served by the organization. However, there is potential conflict between the interests of such persons and the interests of the lawyer's clients. If the possibility of such conflict disqualified a lawyer from serving on the board of a legal services organization, the profession's involvement in such organizations would be severely curtailed.
It may be necessary in appropriate cases to reassure a client of the organization that the representation will not be affected by conflicting loyalties of a member of the board. Established, written policies in this respect can enhance the credibility of such assurances.
The restriction on lawyer participation with legal services and lawyer referral service organizations to those that file their plans with the State Bar of Michigan is intended to facilitate the establishment of a single, central repository of all such organizations in Michigan and of the terms and conditions under which they operate. The existence of that repository would make it possible for the State Bar of Michigan annually to prepare and make publicly available a directory of legal services and lawyer referral service organizations in Michigan. Absent such a central repository, reliable information concerning the status of all such organizations might not be available.
The 1990 amendment to MRPC 6.3(b) was made at the request of the State Bar of Michigan.