The Rent-A-License Scenario

By G. Michael Witte | Executive Director, Disciplinary Commission

Just prior to Christmas 2018, the Indiana Supreme Court Disciplinary Commission issued its second formal advisory opinion, addressing Indiana lawyer affiliation with an out-of-state law firm or a non-lawyer company attempting to provide legal services to clients in Indiana. These business models are commonly known as “rent-a-license” operations and present a problem across the country.
The Commission issued its first formal advisory opinion in April 2018, addressing online legal referral services, commonly called “lead generators.” That opinion identified the risks of lawyer ethical violations regarding fee sharing, improper marketing fees, abdicating professional independence, misleading communication, and limited scope of representation.
These risks, and more, are also present in the rent-a-license model. Foremost are the assistance in the unauthorized practice of law and the assistance in committing ethical violations. There is also the risk of violating the rule requiring supervision of non-lawyer assistants.
Both business models attempt to provide legal services to clients in Indiana without a licensed Indiana lawyer being meaningfully involved in the representation.
The Indiana lawyer is only utilized as a strawman in an attempt by the business or out-of-state law firm to offer legal services in Indiana without being licensed to practice law here. They then direct the cases to an Indiana lawyer for a portion of the fees charged, often while requiring relatively minimal work or involvement by the Indiana lawyer. Many, but not all, of these operations are scams that prey upon vulnerable people with legal problems and insufficient means to afford a lawyer.
Since 2014, the Commission has prosecuted at least eight rent-a-license cases to conclusion including In re Gary Dilk, In re John Joyce, In re Eric Jackson, In re Justin Wall, In re Divina Westerfield, In re Pamela Fratini, In re Richard Mossler, and In re Bradley Crosley (citations omitted). The frequency of the rent-a-license problem and its harm to clients is the type of catalyst that drives a formal advisory opinion.
Lawyers must be on the alert for solicitations to rent an Indiana law license and should avoid the empty promise of quick income.