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Consumers Groups Praise ABA for Hearing Client Voices
Say It's Time for Lawyers to Jointly Offer Services With Other Professionals

May 30, 2000 (The Consumer Alliance) WASHINGTON - More than three dozen consumer and community action groups today applauded an American Bar Association (ABA) study group for acknowledging consumer demand for one-stop access to professional services, but said the time has come to move from study to implementation.



An amended report from the ABA's Commission on Multidisciplinary Practice (MDP), issued on May 12, said that lawyers should be able to enter into fee-sharing arrangements with other professionals and offer integrated services in areas such as estate and financial planning, establishment of small businesses, and home purchase. Existing rules governing lawyers' conduct bars attorneys from entering such cooperative arrangements, creating additional expense, confusion and effort for consumers.

"The Bar Association's archaic rules, offered in the guise of legal ethics, are really about protecting law firms' economic interests," said Don Rounds, President of The Consumer Alliance. "After almost two years of investigation and hearings, a panel composed of leading members of the U.S. legal profession has urged its colleagues to expand consumers' choices by allowing lawyers to enter into cooperative service arrangements. It's now up to the rest of the legal profession to show it can open its minds to the 21st century. We urge the ABA House of Delegates to take the first step in that direction and support consumer needs by endorsing the Commission's recommendations."

Report at Odds With State Bars
In an earlier version of its report presented to the ABA House of Delegates last summer, the Commission said MDPs should be allowed in limited circumstances, but it opposed fee sharing. It also said that MDPs were only acceptable if lawyers retained majority ownership and control of the integrated practices. Even that modest break with past practice attracted significant resistance and its supporters did not submit it for a vote.

"This revised report is an improvement from the standpoint of consumers," said TCA's Rounds, who organized the consumer statement. "But it will have little value until it is embraced throughout the profession and becomes codified at the state level."

But the state bar associations, which govern attorneys in their respective states, have for the most part expressed steadfast opposition to the concept of MDPs, and have instead promised aggressive action to stop any encroachment onto lawyers' turf. These state bars reject completely the extensive study and recommendations of the ABA Commission, which heard testimony from 95 witnesses, received written comments from 120 interested parties and groups, held nine days of open hearings, and met an additional 10 times in executive session. After weighing the considerable record before it, the ABA Commission soundly concluded that there is substantial evidence that consumers want the MDP option and that allowing MDPs is the right thing for lawyers and for the public. However, many state bars continue to insist that there is no evidence of consumer demand and that allowing MDPs will mean the end of the legal profession.

Consumer Groups Concerned by Panel's Call for Delay
The 36 consumer groups that joined Rounds in applauding the ABA panel said they were disappointed that the Commission suggested that the ABA put off consideration of its recommendations until February 2001. The issue is currently on the agenda for the ABA's July 2000 meeting.

"A diverse panel, acting in good faith, has listened to the voice of consumers and agreed that legal and other professionals should be able to organize in new ways to serve client needs," said Lora Weber, President of Consumers Alliance of the South East (CASE). " But too many state bar associations seem wedded to their entrenched power. Until they also open their minds to change, American consumers will continue to suffer from the lack of integrated services that are now increasingly common in Australia and Europe."

Current Rules Deny Access to Needed Services
The consumer groups, which previously expressed their position in an April letter to the MDP Commission, said current rules "threaten to deny consumers access to existing legal services," and are thoroughly anti-consumer. The signers represent national, state, and regional organizations, and include advocates for minorities, seniors, and persons with disabilities.

James Brown, Director of the Center for Consumer Affairs at the University of Wisconsin - Milwaukee, explained, for example, that a senior citizen may need help with estate and tax planning, financial arrangements for children and grandchildren, and health and long-term care issues - requiring assistance from a variety of professional experts.

"Because of the legal profession's rules, seniors have to troop from professional to professional and resolve the complex, overlapping and possibly conflicting counsel themselves. They should have the choice of getting this help in a single office from a unified team of professionals who offer an integrated solution to their issues," Brown said.

In that letter, they expressed the following concerns about the ban on multidisciplinary practices:

  • Consumers want more choices. MDPs mean "more consumers will be able to satisfy unmet legal needs - such as will preparation or estate planning."
  • Few problems in society are strictly legal in nature. Average consumers are hard pressed to find the time and money to access all the professionals required for activities such as setting up a small business, purchasing a home, arranging care for an older relative, or settling an estate - or sort out the often conflicting information they receive from these separate entities.
  • As society is changing, so must consumers' ability to seek professional help. "One-stop shopping" is a concept that has permeated many other facets of American life because it offers consumers a time- and cost-efficient option for addressing complex needs. The refusal to allow consumers this choice is simply a fortification of the legal guild rather than a necessary recognition of changing times and changing consumer needs.

The Consumer Alliance, founded by Don Rounds in 1993, is a broad-based, national coalition of dozens of consumer, senior, minority, employee, low-income and small business organizations that provides a unified voice on issues affecting ordinary consumers. TCA plays an important role in educating and communicating with policymakers at the local, state and federal level on a wide variety of issues.

Don Rounds, President
The Consumer Alliance
Mark Phigler, President
Americans for Competitive Telecommunications
 
James L. Brown, Director
Center for Consumer Affairs
University of Wisconsin-Milwaukee
David A. Swankin, President
Citizen Advocacy Center
 
Lora H. Weber, President
Consumers Alliance of the Southeast
Al Sterman, Secretary-Treasurer
Democratic Processes Center
 
Jim Conran, President
Consumers First
Ken Benner, President
American Council on Consumer Awareness
 
Theodore Debro, Board Chairman
Consumers for Affordable and Reliable
Services of Alabama
Florence M. Rice, President
Harlem Consumer Education Council
 
Wayne Moore, Director
Legal Advocacy Group
American Association of Retired Persons
Ira Schoenholtz, President
American Association of
Business Persons with Disabilities
 
Ernest Wm. Bach, Executive Director
Florida Action Coalition Team
Michael Rulison, President
North Carolina Consumers Council
 
Dorothy Garrick, President
Columbia Consumer Education Council
Esther K. Shapiro, former Director
Detroit Consumers Affairs
 
Ellen M. DeWind, Director
Niagara Frontier Consumers Association
Barbara Olivas, President
Hispanic Education Foundation,
American GI Forum of the US
 
Manuel Oliverez, President
National Association of
Hispanic Federal Executives
Niel Ritchie, Director
Minnesotans For Safe Foods
 
Fab Torrez, Board Member
Community Action Council
Helen Ewing Nelson, President
Consumer Research Foundation
 
Phyllis G. Rowe, President
Arizona Consumers Council
Jeff Schuman, Executive Director
Deep Fork Community Action
 
Mary Horne Odom, Chairman
North Carolina Consumers
for Affordable Electricity
Rob Mayer, Professor
Family and Consumer Studies
University of Utah
 
Dan McCurry, Coordinator
Chicago Consumer Coalition
Anne Werner, Executive Director
United Seniors Health Cooperative
 
Louis S. Meyer, President
Pennsylvania Citizens Consumer Council
Jane Poertner, Executive Director
Central Illinois Economic Development Corporation
 
Jude Filler, Executive Director
Texas Alliance for Human Needs
Felicia Banks, Consumer Director
Shisa, Inc.
 
Regene Mitchell, Vice President
Consumer Federation of California
Velma Montoya, President
National Council of Hispanic Women
 
Henry Clay White, Treasurer
Wisconsin Consumers League
Virginia Jarrow, President
Consumer Coalition of California
 
Anni Chung, Executive Director
Self-Help for the Elderly

2000 The Consumer Alliance. All Rights Reserved.

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