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NMRA 20-111

Not legal advice. Verify against official sources before relying on this text in any legal matter.

Rule 20-111 Business associations prohibited.

← Previous Rule 20-110: Competency. Next → Rule 20-112: Accountability.

Rule Text

A lawyer will not form a partnership or other entity with a paralegal for the purpose of practicing law.

Amendment history: Approved, effective September 1, 1981; as amended, effective January 30, 2004.

Plain-English Summary (for reference only — not a substitute for the rule text above)

This summary is not the rule. The rule text controls.

A lawyer cannot team up with a paralegal to form a business that practices law. This means they can't create a partnership, company, or similar setup together where they both share ownership or control over legal work.

The reason for this rule is simple. Only licensed lawyers are allowed to practice law and be legally responsible for legal advice given to clients. Paralegals work under a lawyer's supervision, but they are not licensed to practice law on their own. If a lawyer and paralegal formed a business together to offer legal services, it would blur that line and could put clients at risk.

This rule protects clients by making sure that only qualified, licensed attorneys run and own law practices. Paralegals can still work for law firms and support attorneys, but they cannot become business partners or co-owners in a law practice.

Committee Notes

Committee commentary. — The lawyer may not enter into any ownership arrangement with a paralegal involving the practice of law.

A lawyer will not share fees with a paralegal. The compensation of a paralegal may not include a percentage of profits, fees received generally or fees received specifically from a client who came to the lawyer or the firm by reason of acquaintance or other association with the paralegal.

However, Rule 16-504 NMRA of the Rules of Professional Conduct provides authorization for a lawyer or law firm to include paralegals in a retirement plan, even though the plan is based in whole or in part on a profit-sharing arrangement, since such inclusion does not aid or encourage laymen to practice law.