As 2024 comes to a close, it’s a good time to reflect on the most significant developments in legal ethics that shaped the profession this year. These changes highlight the evolving challenges and opportunities within the legal landscape.
From the emergence of AI guidelines to new approaches in legal fee structures, these developments have implications for lawyers across the profession. Staying informed about these shifts is essential for navigating the complexities of modern legal practice.
Here are the top 10 legal ethics developments that made an impact in 2024:
1. AI in Legal Practice: New Guidelines Emerge
Generative AI took center stage this year as the ABA released Formal Opinion 512, addressing key issues like confidentiality, competence, and billing practices. States like California and Florida followed suit with detailed guidelines emphasizing informed client consent and understanding the technology.
Practice Tip: Before using AI tools, ensure you understand their functionality and risks. Always secure client consent, especially when dealing with sensitive data.
2. Leadership Changes in Louisiana
The Louisiana Attorney Disciplinary Board welcomed Anderson O. “Andy” Dotson III as its new Chief Disciplinary Counsel, following Charles B. Plattsmier’s retirement. This leadership shift has sparked hopes for fresh approaches to discipline, including expanded diversion programs.
Practice Tip: Stay informed about potential policy changes that could impact disciplinary proceedings and consider participating in dialogue on reform.
3. Digital Romance and Professional Conduct
Pennsylvania updated its Rules of Professional Conduct to classify digital flirtation between attorneys and clients as “sexual relations” under Rule 1.8(j).
Practice Tip: Keep digital communications professional and focused on legal matters. Use formal platforms like client portals to avoid misunderstandings and maintain boundaries.
4. Judicial Social Media Guidelines
Canadian guidelines introduced clear rules for judges using social media, balancing engagement with judicial independence. Topics covered include content creation, privacy, and professional connections.
Practice Tip: Lawyers should apply similar caution in their own social media use.
5. Innovation in Legal Fee Structures
The Texas Professional Ethics Committee approved subscription-based legal services in Opinion 701, provided fees are reasonable, held in trust until earned, and refunded if unearned.
Practice Tip: Consider offering subscription plans for predictable, ongoing legal needs, ensuring compliance with ethical rules.
6. Legal Marketing in the Digital Age
The Ninth Circuit’s decision in Lerner & Rowe PC v. Brown Engstrand & Shely LLC allowed competitive keyword advertising under strict conditions.
Practice Tip: If bidding on competitors’ names, ensure ads are transparent, accurate, and comply with state-specific advertising rules to avoid misleading clients.
7. Protecting Lawyers’ Rights to Practice: Fee Restrictions and Confidentiality Clauses
The Colorado Supreme Court ruled in Johnson Family Law v. Bursek that charging departing lawyers undifferentiated per-client fees violates Rule 5.6(a), emphasizing the importance of preserving lawyers’ professional autonomy and clients’ freedom to choose counsel. Similarly, North Carolina’s Ethics Opinion 2023-2 clarified that settlement agreements cannot restrict lawyers from discussing publicly available case details, safeguarding their ability to use their experiences to assist future clients.
Practice Tip: Law firms should revise exit agreements to recover only specific, documented costs tied to individual clients, avoiding blanket fees that could restrict a lawyer’s ability to continue practicing. When drafting confidentiality clauses, ensure they differentiate between public information and legitimately private details to maintain compliance with ethical standards.
8. ABA Issues Guidance on Lawyers’ Duty to Assess Representations
The ABA’s Formal Opinion 513 emphasizes a lawyer’s duty to assess the facts and circumstances of each representation, ensuring compliance with Model Rule 1.16. This duty, recently clarified in Rule 1.16 amendments, requires lawyers to inquire into the risk of their services being used to further crimes or fraud. Using a “risk-based approach,” the inquiry should be reasonable and proportional, considering factors like the client’s identity, the nature of the legal services, and the jurisdictions involved. Lawyers must decline or withdraw from representation if they know their services will be used unlawfully or if further inquiry reveals a high risk of criminal or fraudulent activity.
Practice Tip: Adopt a checklist for initial and ongoing risk assessments to evaluate client engagements effectively. Stay alert to red flags and use reasonable inquiries to guide ethical decision-making throughout the representation.
9. Alternative Business Structures
Utah and Arizona expanded their innovative approaches to legal services. Utah’s Regulatory Sandbox now runs through 2027, and Arizona’s Alternative Business Structures (ABS) program has over 100 entities approved.
Practice Tip: Monitor these trends to identify opportunities for new service models or partnerships that comply with your state’s regulations.
10. When Does the Clock Start for Unpaid Fees?
In The Kullman Firm v. Integrated Electronic Technologies, Inc., a Louisiana court clarified that the prescriptive period for unpaid fees starts at the end of representation, not when invoices go unpaid.
Practice Tip: Clearly define payment terms in engagement letters and act promptly on overdue invoices. Keep detailed billing records to support timely collection efforts.
Final Thoughts
These developments highlight the ever-changing ethical landscape in the legal profession. Staying informed and adapting your practices accordingly is essential to maintaining compliance and building trust with clients. Have questions? Worried or wondering? Reach out to our team for guidance on how these changes might impact your practice.
