Key points:
- Puerto Rico's Supreme Court approves non-lawyer ownership in law firms.
- Rule 5.4(b) sets conditions to preserve legal integrity.
- Non-lawyer ownership capped at 49% with strict oversight.
In a landmark decision on June 17, 2025, the Supreme Court of Puerto Rico approved new Rules of Professional Conduct, notably introducing Rule 5.4(b), which permits non-lawyers to hold ownership interests in law firms under specific conditions. This rule is set to take effect on January 1, 2026.
**Conditions Under Rule 5.4(b):**
- **Pro Bono Commitment:** Law firms must provide free legal services to indigent individuals.
- **Operational Control:** A Puerto Rico-licensed attorney must operate the firm, representing non-lawyer owners in all voting rights and ensuring compliance with professional conduct rules.
- **Investment Restrictions:** Non-lawyer owners are limited to monetary contributions for ownership interests and are prohibited from offering services, including marketing.
- **Non-Interference:** Non-lawyer owners cannot interfere with attorneys' professional judgment or the attorney-client relationship.
- **Confidentiality:** Client information must be protected as per established confidentiality provisions.
- **Ownership Cap:** Non-lawyer ownership is restricted to a maximum of 49% of the firm's ownership interests.
The Supreme Court plans to evaluate the effectiveness of Rule 5.4(b) within three years of its implementation. This decision aligns Puerto Rico with jurisdictions like Arizona and the District of Columbia, which have also permitted non-lawyer ownership in law firms. ([lawnext.com](https://www.lawnext.com/2025/06/puerto-rico-allows-non-lawyer-ownership-of-law-firms.html?utm_source=openai))
However, the move has faced criticism. Associate Justice Luis F. Estrella Martínez dissented, expressing concerns that non-lawyer ownership could compromise the autonomy and integrity of the legal profession. He highlighted potential risks where economic interests might overshadow ethical practice and affect access to justice. ([legal.io](https://www.legal.io/articles/5692310/Puerto-Rico-Allows-Non-Lawyer-Ownership-of-Law-Firms?utm_source=openai))
As Puerto Rico joins a select group of U.S. jurisdictions allowing limited non-lawyer ownership of law firms, the legal community will closely monitor the impact of these changes on the profession's independence and ethical standards.