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114 N.J.L.J. 369
October 11, 1984
ADVISORY COMMITTEE ON PROFESSIONAL ETHICS
Appointed by the New Jersey Supreme Court
OPINION 539
Law Firm Membership In An
Association Of Businesses
The inquirer is considering having his law firm become a
member of a business association which describes itself as a
professional organization specifically structured to aid its
members in the development of sales and marketing leads and
contacts for business expansion. The association is, or will
become, nationwide in scope, and the states in which it operates
are divided into councils. The members of each council, through an
exchange of information, familiarize themselves with the services
and skills of other members of the council. This exchange of
information at meetings is designed to generate business. The
annual membership charge is $650. The councils meet regularly. A
potential list of prospective products and service industry members
represented runs the gamut from accounting to word processing
services and includes "law firms".
The council is so structured that no more than one business or
profession will be admitted to membership. The members meet in
small discussion groups and are asked to profile their skills and
services. Members are permitted to ask for leads for future
business. "Lead information" forms are used to refer potential
clients or customers to other council members.
In news releases, the President of the association states that
the organization is specifically structured to aid its members in
the development of leads and business contacts.
The inquirer asks whether there is anything unethical in
becoming a member of this group which is, obviously, organized for
the purpose of promoting new business and client relationships.
Since the opinion of the U. S. Supreme Court in Bates v. State
Bar of Arizona, 433 U. S. 350 (1977), lawyers have been permitted
to advertise their services and seek clients in ways that were
considered unethical prior to that opinion. Our Supreme Court in In
re Professional Ethics Advisory Committee Opinion 475, 89 N.J. 74,
96 (1982) app. dism. sub. nom., Jacoby and Meyers v. Supreme Court
of New Jersey, et. al., _ U.S. _, 203 S. Ct. 285, 74 L. Ed.2nd 272
(1982), said "[h]owever, we recognize that in an age of lawyer
advertising, reputations will no longer develop exclusively by the
word of satisfied clients. Both national firms and advertising in
general provide potential benefits to New Jersey consumers of legal
services."
DR 2-103(A)* states "A lawyer may initiate personal contact
with a prospective client for the purpose of obtaining professional
employment subject to the requirements of paragraph (B)." There is
nothing in subparagraph (B) which would preclude the inquirer's law
firm from becoming a member of the association for the purposes of
seeking new clients. DR 2-103(D)** says that:
A lawyer shall not compensate or give anything of
value to a person or organization to recommend or secure
his employment by a client, or, as a reward for having
made a recommendation resulting in his employment by a
client except that he may pay for public communications
permitted by DR 2-101 and the usual and reasonable fees
or dues charged by a lawyer referral service operated,
sponsored, or approved by a bar association.
* now RPC 7.3(a)
** now RPC 7.3(d)
We do not believe that, by joining the organization, the law
firm is giving compensation to the organization to recommend or
secure clients. The organization's purpose is to create a pool of
individuals in industry, commerce and the professions in which
business and professional men will meet and make known to each
other their abilities and needs. This is not unlike what occurs in
service clubs such as Rotary, Kiwanis, and similar organizations.
We do not believe that the joining of such a group would
violate the Disciplinary Rules.***
***Rules of Professional Conduct
* * *
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