The American Bar Association (ABA) released Ethics Opinion 08-451 on legal outsourcing. The opinion was released on August 25, 2008.
The ABA Ethics Committee Issues Opinion Detailing Lawyer Responsibilities When Outsourcing Legal Work Domestically or Internationally press release makes several important points:
- “U.S. lawyers are free to outsource legal work, including to lawyers or nonlawyers outside the country, if they adhere to ethics rules requiring competence, supervision, protection of confidential information, reasonable fees and not assisting unauthorized practice of law.”
- “Many lawyers do outsource work, using lawyers or nonlawyers as independent contractors, hiring them directly or through intermediaries and on temporary or ongoing bases”
- “Outsourcing lawyers are subject, like all lawyers, to an obligation to render competent legal services, and lawyers who supervise other lawyers or nonlawyers in performing legal services are responsible for assuring the individuals they supervise comply with ethics rules governing lawyers.”
- “Outsourcing can reduce client costs and enable small firms to provide labor intensive services such as large, discovery intense litigation, even though the firms might not maintain sufficient ongoing staff to handle the work, according to a new ethics opinion issued today.”
- “Depending on the level of supervision contemplated by the outsourcing lawyer, it might be necessary to obtain informed client consent before engaging outside assistance.”
- “If the provider is in a foreign country, the outsourcing lawyer should determine whether the legal education system in that country is similar to that of the U.S., and whether professional regulatory systems incorporate equivalent core ethics principles and effective disciplinary enforcement systems.”
- Regarding fees, the opinion says outsourcing lawyers may pass along to the client the costs of using the service provider, including a reasonable allocation of associated overhead expenses, but ‘no markup is permitted.’ “
Though the press release provides a link to the actual opinion, as of 1130am EDT, that opinion did not seem readily available for download from the ABA website. Once we obtain the opinion, we may have further comments.
Update (26 Aug 08): The ABA has made its ethic opinion available online: Formal Opinion 08-451 - Lawyer’s Obligations When Outsourcing Legal and Nonlegal Support Services. (PDF)
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