New rules allow nonlawyers to practice law and own law firms in Arizona. This welcomed revolution in access to justice will have profound effects on the justice system and legal profession.

And like all broad reforms, it has possible unintended consequences.

The new rules allow nonlawyers to invest in and manage Arizona law firms structured as “Alternative Business Structures” — business entities that provide legal services and include nonlawyers with economic interests or decision-making authority.

Nonlawyer economic interests or decision-making authority must be disclosed to a special committee and both the Alternative Business Structure and its investors are subject to various licensing and ethics requirements.

These requirements are meant to ensure that the clients’ interests in their legal outcomes will take precedence over the competing interests of investors in maximizing financial returns.