In a move that aligns Puerto Rico with a small group of US jurisdictions, the Supreme Court of Puerto Rico has sanctioned a significant change in the legal landscape by adopting a rule that permits non-lawyers to own an interest in law firms. This development was confirmed by a trial lawyers group in the US territory and marks Puerto Rico’s inclusion alongside Arizona, Utah, and the District of Columbia as regions where such ownership structures are permissible.
Paul Napoli, a partner at Napoli Shkolnik and chairman of the Trial Lawyers of Puerto Rico, suggests that this regulatory change, combined with the existing tax incentives, could propel Puerto Rico to the forefront of litigation finance in the United States. By reducing regulatory barriers, Puerto Rico might become a more attractive jurisdiction for legal businesses seeking operational flexibility and financial advantages.
This initiative is particularly noteworthy given that the majority of US states uphold restrictions preventing non-lawyers from having ownership stakes in legal practices. The rule change is anticipated to enhance Puerto Rico’s appeal to US lawyers and firms who are already drawn by its favorable tax regime.
For additional details, the full article is available on Bloomberg Law.