Access to Justice
Nearly 30 legal entities may leave Utah’s regulatory sandbox program after state tightens rules
At least 27 law firms and businesses may be leaving a Utah program that permits nontraditional legal services providers to operate in the state, including firms operated by nonlawyers, according to a published report. (Image from Shutterstock)
At least 27 law firms and businesses may be leaving a Utah program that permits nontraditional legal services providers to operate in the state, including firms operated by nonlawyers, according to a published report.
The exodus follows a tightening of regulations governing the program, Reuters reports.
Under the new rules, program participants must show that they will reach Utah consumers currently underserved by the legal market, and that the impact is substantial compared to an entity’s overall reach. National and international companies serving only a small number of Utah residents don’t qualify.
Utah appellate court administrator Nick Stiles told Reuters that at least 27 participants in the program have left or may be leaving because they are withdrawing or being terminated because of the changes.
Only about a dozen participants remain in the program, according to Reuters. Records indicate that those companies use technology to lower legal costs or use nonlawyers to provide legal services in areas such as medical debt and domestic violence, the article reports.
Rocket Lawyer is among the companies withdrawing from the program, Reuters reports. The online legal services company is shifting efforts to Arizona after it won approval in the state’s program, said Jack Rives, president of Rocket Lawyer subsidiary Rocket Legal Professional Services, in a statement to Reuters. Rives is the former executive director of the ABA.
Rocket Lawyer was one of the first entities approved to participate in the Utah program.
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