Judge tosses law firm's lawsuit on ownership
Court News 2012/03/12 10:45
A Manhattan federal judge has dismissed a lawsuit challenging a New York rule banning law firms from selling ownership stakes to non-lawyers.
The suit was filed by the personal injury firm Jacoby & Meyers.
The firm said the rule violated its First Amendment freedom-of-association rights.
It claimed that the rule preventing non-lawyers from owning stakes in law firms hindered its ability to raise capital to cover technology and expansion costs. It also said it hurt its ability to provide legal services to working class clients.
According to the Wall Street Journal, the judge found that Jacoby & Meyers' ability to raise money from non-lawyers would still be restricted by other New York laws even if he struck down the rule.
The suit was filed by the personal injury firm Jacoby & Meyers.
The firm said the rule violated its First Amendment freedom-of-association rights.
It claimed that the rule preventing non-lawyers from owning stakes in law firms hindered its ability to raise capital to cover technology and expansion costs. It also said it hurt its ability to provide legal services to working class clients.
According to the Wall Street Journal, the judge found that Jacoby & Meyers' ability to raise money from non-lawyers would still be restricted by other New York laws even if he struck down the rule.
