Rule 5.4 restricts what aspect of a lawyer’s business operations?

Rule 5.4 of the ABA Model Rules of Professional Conduct addresses the professional independence of lawyers and specifically restricts sharing legal fees with non-lawyers. This rule is designed to preserve the autonomy and professional judgment of lawyers, ensuring that non-lawyers do not influence legal decisions or the provision of legal services based on profit motives.

By prohibiting fee-sharing with non-lawyers, the rule seeks to prevent conflicts of interest and maintain the integrity of the attorney-client relationship. It ensures that lawyers are free from outside pressures, particularly from potential investors or non-legal partners who might have different priorities than the ethical obligations required of a lawyer. Since fees can directly impact how legal services are rendered, this rule emphasizes that legal practitioners must control their financial arrangements solely without external influence from non-lawyers.

The other options, such as hiring non-lawyers as employees, advertising in legal services, and providing discounts to clients, do not fall under this prohibition of sharing legal fees. While there are specific regulations concerning advertising and ethical practices, those do not directly relate to the fundamental tenet of professional independence and fee-sharing emphasized in Rule 5.4.