Law Firm Ownership Model Eyed for 'Scary' Shakeup in Tennessee

Legal ethics attorney Trisha Rich was interviewed for a Bloomberg Law article about Tennessee's exploration of loosening restrictions on law firm ownership and how the change could affect legal practice. The Tennessee Supreme Court announced it will take comments until March 2026 on the proposal, citing concerns about an insufficient supply of legal services. Currently, the majority of states follow the American Bar Association's (ABA) Model Rules of Professional Conduct, which prohibit nonlawyers from having a stake in law firms to preserve independence and ensure high-quality legal representation, and Arizona and Utah are the only exceptions. Changing the rules would follow the path forged in the healthcare industry, where management services organizations (MSOs) allow for split ownership between physicians and outside investors. Ms. Rich, who has advised on numerous MSO-law firm partnerships, shared her thoughts on the move.

Protecting lawyer ownership of firms is "a solution looking for a problem," she said. "Many law firms, ours included, are multibillion-dollar companies now. The people running them are business people that happen to have law degrees."

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