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Lawyers and Limited Liability for Arizona's Professionals: Deliverance or Damnation?

Abstract

This Note first sets forth a brief overview of the evolution of limited liability for attorneys nationally, from nearly universal disapproval in the late 1950's to varying degrees of acceptance today. It then considers the policy ramifications of applying limited liability to the business debts of a law firm, and argues that limited liability is appropriate for these debts. Next, this Note evaluates the desirability of limiting the personal liability of shareholder-lawyers for the professional legal debts of their firm, and argues that limited liability for these debts is inappropriate. Finally, it considers whether limiting the personal liability of law-firm owners for the non-professional legal debts of their firm is desirable, and argues that, in most cases, limited liability for these debts is appropriate. At each point in the analysis, this Note will recommend a judicial interpretation of the limited liability provisions of Arizona's professional corporation statute which is consistent with the interests of the general public.

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37 Ariz. L. Rev. 355 (1995)

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Authors

Thomas A. Denker (University of Arizona)

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