Can a law firm let a collection agency's staff, or place its own paralegal at the agency's office, to field collection calls in the firm's name?

Plain-English summary

A law firm represented a collection agency and proposed two arrangements. In the first, a "paraprofessional" employed by the collection agency would accept phone calls at the agency's office on behalf of the law firm and negotiate with debtors. In the second, a legal assistant employed by the law firm would be stationed at the agency's office to take calls and discuss collection matters. The inquiry asked whether either was improper.

The committee applied former Rule 3-101, which bars a lawyer from aiding a nonlawyer in the unauthorized practice of law and permits delegation to a nonlawyer only where the lawyer actually supervises the nonlawyer and assumes complete responsibility for the work. It also cited Ill. Rev. Stat. ch. 13, sec. 1, which forbids practicing law or receiving compensation for legal services without a license. On the first arrangement, the committee concluded that the agency's "paraprofessional" is neither employed by nor supervised by the attorney, so the procedure creates the impression of impropriety and could constitute aiding the unauthorized practice of law in violation of Rule 3-101 and the statute.

On the second arrangement, the committee concluded that having the firm's legal assistant take calls and discuss collection matters at the client's office without any lawyer supervision would, at the very least, violate Rule 3-101's requirement that the lawyer supervise the nonlawyer he employs and take complete responsibility for that work.

Currency note

This opinion was issued in March 1989, under the former Illinois Code of Professional Responsibility and before Illinois adopted the 1990 (and later 2010) Rules of Professional Conduct. The ISBA Board of Governors affirmed the opinion in May 2010 as generally consistent with the 2010 Rules (Rules 5.4 and 5.5(a)), while cautioning that the specific standards referenced may differ from the 2010 Rules. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule or requirement mentioned here.

Common questions

Q: Can a law firm let a client's own employee answer calls and negotiate in the firm's name?

A: The opinion concluded no; because the client's employee is not employed or supervised by the attorney, the arrangement could constitute aiding the unauthorized practice of law under former Rule 3-101 and the Illinois licensing statute.

Q: Can the firm instead station its own paralegal at the client's office to handle collection calls?

A: Per the opinion, not without lawyer supervision; an unsupervised legal assistant discussing collection matters at the client's office violates Rule 3-101's requirement that the lawyer supervise and take complete responsibility for the nonlawyer's work.

Background and rules framework

The opinion applied former Illinois Code Rule 3-101 (aiding the unauthorized practice of law; permissible delegation to supervised nonlawyers) and Ill. Rev. Stat. ch. 13, sec. 1 (the licensing requirement). The Board's 2010 affirmation maps the analysis to current Illinois Rules of Professional Conduct 5.4 (professional independence) and 5.5(a) (unauthorized practice), corresponding to ABA Model Rules 5.4 and 5.5.

Citations and references

Rules of Professional Conduct:

• Illinois Code Rule 3-101 (former Code, applied in the opinion)
• Illinois RPC 5.4, 5.5(a) (2010 equivalents per the Board's affirmation)
• MR 5.4 (professional independence), MR 5.5 (unauthorized practice)

Statutes:

• Ill. Rev. Stat. ch. 13, sec. 1 (licensing required to practice law or receive compensation for legal services)

See also

• ISBA Ethics Op. 90-06: Sharing Office Space With Nonlawyers
• ISBA Ethics Op. 89-17: Who Is the Client When an Insurer's Staff Lawyer Defends the Insured

Source

• Landing page: https://www.isba.org/ethics/opinions/8808