Can a lawyer run a law practice and a separate public-adjusting business at the same time, and what must the lawyer do to keep them proper?

Plain-English summary

A lawyer asked about conducting a law business and a public-adjusting business. The committee was of the opinion that the lawyer may ethically maintain both businesses in the fashion anticipated, so long as certain requirements are met.

The lawyer must separate the law practice from the other business sufficiently so that they do not appear to operate together or to be related, and must comply with RPC 7.2 (the business may not be used as a feeder in violation of the solicitation rules), RPC 5.4 (a lawyer may not share or divide legal fees with a nonlawyer and may not form a partnership with a nonlawyer if any of the activities include the practice of law), and RPC 5.5 (a lawyer shall not aid in the unauthorized practice of law). Pursuant to RPC 1.6, client confidences and secrets must be preserved, and the lawyer must make clear to clients when an attorney-client relationship exists and when it does not.

Currency note

This opinion was issued in 1992, before the Washington State Bar Association's adoption of the 2006 revisions to the Rules of Professional Conduct. 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 Treat this page as historical context, not current guidance.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, deadline, or requirement mentioned here.

Common questions

Q: Can a lawyer operate a law practice and a public-adjusting business at the same time?

A: The committee was of the opinion that the lawyer may maintain both, so long as they are kept separate and the listed rules are observed.

Q: What must the lawyer do to keep the two businesses separate?

A: The committee said the lawyer must separate them sufficiently so they do not appear to operate together or to be related, and must comply with RPC 7.2, 5.4, and 5.5.

Q: What does RPC 1.6 require in this dual-business setting?

A: The committee said client confidences and secrets must be preserved, and the lawyer must make clear to clients when an attorney-client relationship exists and when it does not.

Background and rules framework

The opinion applied RPC 1.6 (confidentiality), RPC 5.4 (professional independence; fee sharing and partnership with nonlawyers), RPC 5.5 (unauthorized practice of law), and RPC 7.2 (advertising and solicitation), corresponding to the same-numbered ABA Model Rules. The committee permitted the dual operation conditioned on separation of the two businesses, no use of the adjusting business as a feeder, no fee sharing or partnership with nonlawyers in the practice of law, no assistance to UPL, and clear delineation of when the attorney-client relationship applies.

Citations and references

Rules of Professional Conduct:

• ABA Model Rule 1.6 (confidentiality of information); Washington RPC 1.6
• ABA Model Rule 5.4 (professional independence); Washington RPC 5.4
• ABA Model Rule 5.5 (unauthorized practice of law); Washington RPC 5.5
• ABA Model Rule 7.2 (advertising; solicitation rules); Washington RPC 7.2

See also

• WA Ethics Op. 1481: Lawyer Who Also Works as Investigator
• WA Ethics Op. 1471: Lawyer Tied to a Living-Trust Company

Source

• Landing page: https://ao.wsba.org/print.aspx?ID=568

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

Advisory Opinion: 1488
Year Issued: 1992
RPC(s): RPC 1.6; 5.4; 5.5; 7.2
Subject: Dual professions; requirements for conducting law practice and separate business

The Committee reviewed your inquiry concerning conducting a law business and a public adjusting business. The Committee was of the opinion that you may ethically maintain both businesses in the fashion you anticipate, so long as certain requirements are met.

You must separate your law practice from the other business sufficiently so that they do not appear to operate together or to be related, and you must comply with RPC 7.2 (business may not be used as a feeder in violation of the solicitation rules); RPC 5.4 (lawyer many not share or divide legal fees with non-lawyer and lawyer may not form a partnership with a non-lawyer if any of the activities include the practice of law); and RPC 5.5 (lawyer shall not aid in the unauthorized practice of law).

Pursuant to RPC 1.6, client confidences and secrets must be preserved, and the lawyer must make clear to his clients when an attorney/client relationship exists and when it does not.