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The American Bar Association has opined that there is “nothing unethical” about outsourcing, so long as the service is provided with “legal knowledge, skill, thoroughness and preparation reasonably necessary” for representation.
The ABA and Texas State Bar agree that if outsourcing fees are billed as part of a law firm bill, the client must be informed that the contract attorneys are not employed by the law firm and the law firm should only bill the client for the cost it paid to the outsourcing agency, plus “reasonable allocation” of the law firm cost to supervise the contract attorneys. Moreover, under Texas rules, the law firm bill must make clear that these are “non-firm lawyers”. Currently, these attorney outsourcing costs are essentially treated similarly to other administrative support costs (e.g., copying).[2]

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