top tip
TLI Top Tip: Texas Ethics Committee Opinion 707 – Companies owned by non-lawyers cannot offer legal services to customers
June 5, 2025
Preview
In Opinion 707, the Texas Professional Ethics Committee (“PEC”) addressed whether full time, salaried in-house counsel of a for-profit company owned by non-lawyers could provide legal services to customers of the company.
In the particular fact scenario presented to the PEC, the company offered that: 1) it would only charge the customers the “actual cost” the company incurred for allowing its lawyer employees to provide the legal services; 2) all of the in-house counsel were licensed in Texas; 3) in-house counsel would not represent both the company and the customer in the same or substantially related matters; 4) in-house counsel would exercise their independent professional judgment; and 5) the company would not be involved in or interfere with the attorney-client relationship with the customer.
Relying on the Texas Supreme Court’s decision in Unauthorized Practice of Law Comm. v. Am. Home Assur. Co,…