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WA Supreme Court Launches Pilot Program to Explore Legal Entity Regulation

On December 5, 2024, the Washington Supreme Court took a significant step toward modernizing legal service delivery by approving a pilot program to test entity regulation. This initiative will allow selected applicants to provide legal services under temporary exemptions from existing court rules and statutes governing legal practice in Washington.

Under Order 25700-B-721, the Washington State Bar Association (WSBA) and the Practice of Law Board (POLB) will oversee the program in collaboration with the Supreme Court. The pilot will be data-driven and timebound, gathering insights to inform potential regulatory changes. The WSBA will provide ongoing updates on application procedures, program logistics, and implementation timelines.

What Is the Entity Regulation Pilot Program?

Traditionally, only individuals licensed by the Washington Supreme Court have been permitted to own law firms, share legal fees, and practice law in the state. However, rapid technological advancements and evolving business models reshape how legal services are delivered. Online platforms and alternative legal service providers have already entered the market, raising questions about the opportunities and challenges these changes pose.

The Supreme Court, WSBA, and POLB designed this pilot program to examine these emerging models under a controlled framework. For the first time, entities—including those led by individuals who are not licensed attorneys—will be able to apply for authorization to offer legal services under limited exemptions from traditional practice rules. After the pilot, data, and insights gathered from participating entities will help determine whether permanent regulatory changes are warranted.

This initiative is an exploratory step rather than a final decision. The goal is to make informed, transparent, and evidence-based choices about the future of legal service regulation in Washington.

Background and Objectives

For years, the POLB has been closely monitoring the rise of technology-driven legal services and assessing their impact on public access to justice. Recognizing these innovations' potential benefits and risks, the Board has engaged with industry experts to study alternative service models used by national and international companies operating outside WSBA’s regulatory framework.

The central question driving this initiative is: How should the Supreme Court, with its authority over regulating legal practice, respond to these emerging trends? While technology offers new opportunities to bridge access-to-justice gaps, there are concerns about the risks of unregulated legal services, including the potential for misleading or harmful advice.

The WSBA Board of Governors prioritized technology-related regulatory assessment in its 2024 strategic plan to address this challenge. In November 2023, the Board voted to support the pilot program, recognizing WSBA’s critical role in its implementation. After gathering public input, the WSBA and POLB submitted a formal proposal to the Supreme Court on September 27, 2024. The Court adopted the proposal on December 5, 2024, incorporating amendments to extend the pilot duration and refine reporting requirements for participating entities.

Washington Joins a Growing National Movement

With the launch of this pilot, Washington becomes one of the few states actively testing entity regulation in legal services. Utah and Arizona have already implemented similar programs to evaluate whether alternative business models can enhance consumer access to legal representation while maintaining ethical and professional standards.

Participating entities in Washington’s pilot will be subject to strict oversight, including compliance with ethical rules and ongoing data reporting requirements. The Supreme Court will use the collected information to determine the model's effectiveness and whether further regulatory changes should be considered.

By embracing this forward-thinking approach, Washington is positioning itself at the forefront of legal innovation, ensuring that regulatory decisions are driven by real-world data rather than speculation.

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