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amendments to the Hawaii Rules of Professional Conduct

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(1) a nonlawyer owns any interest <strong>the</strong>rein, except that a fiduciary<br />

representative <strong>of</strong> <strong>the</strong> estate <strong>of</strong> a lawyer may hold <strong>the</strong> s<strong>to</strong>ck or interest <strong>of</strong> <strong>the</strong><br />

lawyer for a reasonable time during administration;<br />

(2) a nonlawyer is a corporate direc<strong>to</strong>r or <strong>of</strong>ficer <strong>the</strong>re<strong>of</strong> or occupies<br />

<strong>the</strong> position <strong>of</strong> similar responsibility in any form <strong>of</strong> association o<strong>the</strong>r than a<br />

corporation; or<br />

(3) a nonlawyer has <strong>the</strong> right <strong>to</strong> direct or control <strong>the</strong> pr<strong>of</strong>essional<br />

judgment <strong>of</strong> a lawyer.<br />

COMMENTS:<br />

[1] The provisions <strong>of</strong> this Rule express traditional<br />

limitations on sharing fees. These limitations are <strong>to</strong> protect <strong>the</strong><br />

lawyer's pr<strong>of</strong>essional independence <strong>of</strong> judgment. Where<br />

someone o<strong>the</strong>r than <strong>the</strong> client pays <strong>the</strong> lawyer's fee or salary, or<br />

recommends employment <strong>of</strong> <strong>the</strong> lawyer, that arrangement does<br />

not modify <strong>the</strong> lawyer's obligation <strong>to</strong> <strong>the</strong> client. As stated in<br />

paragraph (c), such arrangements should not interfere with <strong>the</strong><br />

lawyer's pr<strong>of</strong>essional judgment.<br />

[2] This Rule also expresses traditional limitations on<br />

permitting a third party <strong>to</strong> direct or regulate <strong>the</strong> lawyer’s<br />

pr<strong>of</strong>essional judgment in rendering legal services <strong>to</strong> ano<strong>the</strong>r.<br />

See also Rule 1.8(f) <strong>of</strong> <strong>the</strong>se <strong>Rules</strong> (lawyers may accept<br />

compensation from a third party as long as <strong>the</strong>re is no<br />

interference with <strong>the</strong> lawyer’s independent pr<strong>of</strong>essional<br />

judgment and <strong>the</strong> client gives consent after consultation).<br />

[3] Subsection (b) only applies if legal services are<br />

provided by <strong>the</strong> partnership <strong>to</strong> third persons or entities (i.e.,<br />

o<strong>the</strong>r than <strong>to</strong> <strong>the</strong> partnership itself).<br />

Rule 5.5. UNAUTHORIZED PRACTICE OF LAW.<br />

A lawyer shall not:<br />

(a) practice law in a jurisdiction where doing so violates <strong>the</strong><br />

regulation <strong>of</strong> <strong>the</strong> legal pr<strong>of</strong>ession in that jurisdiction; or<br />

(b) assist a person who is not a member <strong>of</strong> <strong>the</strong> bar in <strong>the</strong> performance<br />

<strong>of</strong> activity that constitutes <strong>the</strong> unauthorized practice <strong>of</strong> law; or<br />

(c) allow any person who has been suspended or disbarred and who<br />

maintains a presence in an <strong>of</strong>fice where <strong>the</strong> practice <strong>of</strong> law is conducted by <strong>the</strong><br />

lawyer <strong>to</strong> have any contact with <strong>the</strong> clients <strong>of</strong> <strong>the</strong> lawyer ei<strong>the</strong>r in person, by<br />

telephone, or in writing or <strong>to</strong> have any contact with persons who have legal<br />

dealings with <strong>the</strong> <strong>of</strong>fice ei<strong>the</strong>r in person, by telephone, or in writing.<br />

COMMENT:<br />

The definition <strong>of</strong> <strong>the</strong> practice <strong>of</strong> law is established by law<br />

and varies from one jurisdiction <strong>to</strong> ano<strong>the</strong>r. Whatever <strong>the</strong><br />

definition, limiting <strong>the</strong> practice <strong>of</strong> law <strong>to</strong> members <strong>of</strong> <strong>the</strong> bar<br />

protects <strong>the</strong> public against rendition <strong>of</strong> legal services by<br />

unqualified persons. Paragraph (b) does not prohibit a lawyer<br />

- 113 ­

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