Origins of the Entity Regulation Pilot Project
In Washington State, it would be difficult not to notice the impact of new technologies on the world around us, and in particular the potential for technology and innovative business models to impact the delivery of legal services and the practice of law in ways that may be positive, negative, or both.
With an eye toward consumer protection and safeguarding against the unauthorized practice of law, the WSBA Practice of Law Board (POLB) for years has been monitoring the ways technology is changing the legal landscape. More specifically, the POLB has been studying how online and innovative legal service providers are delivering legal services to the public and how the delivery of these services has the potential to increase access to justice. The board has studied the issue closely and engaged with legal technology experts to better understand current and potential ways entities might provide legal services; this work is already being done by national and international companies, unregulated by the WSBA, and is sure to expand in coming years.
The overriding question is: What role can and should the Washington Supreme Court take with its plenary authority over the regulation of the practice of law, given the threats and opportunities presented by emerging legal technologies? The potential to close access-to-justice gaps is great, but so is the possibility of bad and harmful legal advice. To get to an answer, the POLB, with guidance from the Court, began exploring a process for a pilot test of entity regulation—that is, allowing innovative business models to offer legal services under carefully monitored conditions.
Also recognizing the profound implications of these changes in the delivery of legal services, the WSBA Board of Governors made it a strategic priority for fiscal year 2024 to “Assess technology‐related opportunities and threats and determine WSBA’s role vis-à-vis regulation, consumer protection, and support to legal professionals.” In furtherance of its strategic priority, the WSBA Board of Governors voted in Nov. 2023 to support the pilot test and become partners, as the WSBA acts under delegated authority from the Court to assist in regulating the practice of law and would
have the expertise and responsibility of running the pilot in collaboration with the POLB. Following a public comment period on the proposal, on Sept. 27, 2024, the WSBA and POLB submitted to the Court a proposed order to implement a pilot of entity regulation. On Dec. 5, 2024, the Court adopted the proposed order with amendments extending the length of the pilot and clarifying entity reporting requirements.
Among U.S. jurisdictions, Washington now joins Utah and Arizona in executing a plan to determine how the delivery of legal services by entities can be regulated in a manner that protects consumers and promotes broader access to legal services. Participating entities will be required to abide by a Supreme Court authorizing order detailing conditions on their participation, including adherence to rules of ethics and regular reporting of data and information relating to their delivery of services to the public.
