In a potentially significant decision for legal professionals, the Florida Bar’s board of governors has discontinued a proposed advisory opinion. This opinion, had it not been decommissioned, would have allowed attorneys in Florida – often referred to as the “Sunshine State” – to engage in passive investment in out-of-state law firms that utilise alternative business structures. The decision to abandon the proposal was made subsequent to the board’s receipt of negative feedback from former bar presidents.
The specifics of the proposal previously under consideration outlined certain conditions under which Florida attorneys could make said investments. For example, certain legal requirements or parameters may have been stipulated to ensure the investments would prove ethical and legally sound. However, upon facing critique from past bar presidents, the board of governors concluded to withdraw the recommendation.
The fact that such a protective stance has been taken by the legal community in Florida brings to fore the continued reservations and potential regulatory challenges that surround the mixing of legal practice with business, particularly in the context of cross-state operations.
For comprehensive detail on this development, legal professionals may read the full report by Madison Arnold at Law360.