Informal Opinion Number: 950066

QUESTION: Attorney proposes to practice only in the area of abstract opinions. Attorney would like to practice as the employee of the abstract company and provide abstract opinions for individuals purchasing property or banks financing the purchase. Another option would be for Attorney to be employed by a title insurance company and provide opinions for the use of that company in determining whether to issue title insurance. ANSWER: The first arrangement proposed would create a number of problems under the rules. Practicing law in a general business corporation, such as the abstract company, would involve assisting the unauthorized practice of law by the title company in violation of Rule 4-5.5(b) and fee splitting with a non-lawyer in violation of Rule 4-5.4(a). Additionally, the arrangement would involve possible problems with conflicts of interest between Attorney´s true client, the one receiving the abstract opinion, and the abstract company by which Attorney would be employed. If Attorney maintains an independent law practice, the abstract company can refer the clients to Attorney. Attorney may then give abstract opinions to the clients as long as the clients pay Attorney rather than the abstract company and as long as Attorney does not give the abstract company anything of value in exchange for the referral. Attorney may be employed by a title insurance company to provide opinions to that company upon which it would base its decision regarding the issuance of title insurance. In this situation, the client would be the title insurance company and the compensation would come from the client.

Informal Opinions are ethics advisory opinions issued by the Office of Legal Ethics Counsel to members of the Bar about Rule 4 (Rules of Professional Conduct), Rule 5 (Complaints and Proceedings Thereon), and Rule 6 (Fees to Practice Law) pursuant to Missouri Supreme Court Rule 5.30(c). Written summaries of select Informal Opinions are published for informational purposes as determined by the Advisory Committee of the Supreme Court of Missouri pursuant to Rule 5.30(c). Informal opinion summaries are advisory in nature and are not binding. These opinions are published as an educational service and do not constitute legal advice.

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