1/28/02

At its meeting on January 26, the State Bar's Representative Assembly approved a proposed amendment to the Michigan Rules of Professional Conduct regarding ancillary and joint services to clients. The proposed amendments clarify how lawyers may offer non-law ancillary services and joint services; permit lawyers to exchange referrals with non- lawyers without compensation; and permit fee-sharing between lawyers and non-lawyers when providing ancillary or joint services to clients.

Ancillary services are nonlaw services delivered by the law firm or from a separate business entity in which the law firm has a financial interest. Examples of ancillary services include accounting, real estate consulting and development, international trade consultation and financial planning and investment.

According to Richard Rassel, chair of the State Bar of Michigan Multidisciplinary Practices Committee, the proposal does not authorize multidisciplinary practices in this state. "The proposed amendments do not permit non-lawyer ownership or control of law firms. The benefit of the proposal is that lawyers will have the flexibility to respond to market changes because they will receive guidance in formulating ancillary and joint services. Clients are demanding more services in non-law areas, and this proposal will allow attorneys to provide them."

The proposal was forwarded to the Michigan Supreme Court for its consideration.

In other matters, the Assembly adopted a resolution that the "State Bar of Michigan opposes the United States Department of Justice's proposed rule to monitor the communications between attorneys and their clients without prior judicial approval which abrogates the attorney?client privilege, a fundamental right since our country's inception." A copy of this resolution has been forward to the Attorney General of the United States and the Rules Unit of the Office of General Counsel, Bureau of Prisons.

The Assembly also adopted a resolution that "the State Bar of Michigan endorses the January 4, 2002 recommendations on military commissions made by the American Bar Association Task Force on Terrorism and the Law." The ABA recommendation states that "all branches of the federal government should adhere to applicable U. S. Constitutional and international Rule of Law principles in all activities relating to the apprehension, detention, prosecution, sentencing, and appeals of persons suspected of or charged with committing terrorist acts or terrorism-related activities against the United States." Full Text of the ABA Recommendation

Copies of the resolution, along with the Task Force recommendations, have been forwarded to the president of the United States, the secretary of defense of the United States, and the American Bar Association.

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