Rule 1:21-1C. Limited Liability Partnerships for the Practice of Law

(a) Attorneys may engage in the practice of law as limited liability partnerships in the same manner as an individual or a partnership may engage in the practice of law, provided that:

(1) All provisions of the Uniform Partnership Act, N.J.S.A. 42:1A-1 through 56, shall be complied with, except where inconsistent with these rules. For a limited liability partnership that is a foreign limited liability partnership, N.J.S.A. 42:1A-50 through 54 shall apply, except where inconsistent with these rules and except that an attorney practicing in this State who is a member, employee, agent, or representative of such a limited liability partnership shall not be shielded from personal liability for his or her own negligence, omissions, malpractice, wrongful acts, or misconduct, and that of any person under his or her direct supervision and control while rendering professional services on behalf of the limited liability partnership. (2) The limited liability partnership shall comply with and be subject to all rules governing the practice of law by attorneys and it shall do nothing which, if done by an individual attorney would violate the standards of professional conduct applicable to attorneys licensed to practice law in this State. Any violation of this rule by the limited liability partnership shall be grounds for the Supreme Court to terminate or suspend the limited liability partnership's right to practice law or otherwise to discipline it. (3) The limited liability partnership shall obtain and maintain in good standing one or more policies of lawyers' professional liability insurance which shall insure the limited liability partnership against liability imposed upon it by law for damages resulting from any claim made against the limited liability partnership by its clients arising out of the performance of professional services by attorneys employed by the limited liability partnership in their capacities as attorneys. The insurance shall be in the amount for each claim of at least $100,000 multiplied by the number of attorneys employed by the limited liability partnership, provided that the maximum coverage shall not be required to exceed $5,000,000 for each claim, and further provided that the deductible portion of such insurance shall not exceed $10,000 multiplied by the number of attorneys employed by the limited liability partnership or $500,000, whichever is less. The limited liability partnership may enter into an indemnity agreement with its insurer under which the limited liability partnership agrees to indemnify the insurer for losses in excess of the amount of the permitted deductible provided that the insurer remains liable to pay all judgments against the limited liability partnership up to the policy limits regardless whether the limited liability partnership indemnifies the insurer as required under the indemnity agreement.

Amendments to and renewals of the certificate of insurance shall be filed with the Clerk of the Supreme Court within 30 days after the date on which such amendments or renewals become effective.

(c) The name of the limited liability partnership shall comply with the provisions of RPC 7.5 and shall contain only the full or last names of one or more of its partners or partners of a predecessor firm, whether the partner be living, deceased or retired. Wherever the name of the limited liability partnership is used it shall be followed by the phrase "A limited liability partnership," or by any other phrase or abbreviation authorized by N.J.S.A. 42:1A-48 to indicate that it is a limited liability partnership. In the case of a foreign limited liability partnership, the phrase shall also identify the jurisdiction of formation (e.g., "A limited liability partnership formed in the State of New York"). The limited liability partnership name shall be used on all pleadings, correspondence or other documents. Correspondence, pleadings and other documents executed in connection with the practice of law shall be executed on behalf of the limited liability partnership by one of its attorney partners or employees. Partnership documents executed other than in connection with the practice of law may be executed on behalf of the limited liability partnership by an authorized employee who is not licensed to practice law.

(d) A limited liability partnership actually and actively engaged in the practice of law may hold shares of stock in a professional corporation covered by Rule 1:21-1A, and may hold an interest in a limited liability company covered by Rule 1:21-1B.

(e) A limited liability partnership may engage in the practice of law in partnership with another partnership of attorneys, including a limited liability partnership, with a professional corporation or corporations covered by Rule 1:21-1A, with a limited liability company or companies covered by Rule 1:21-1B, or with an attorney or partnership of attorneys. The limited liability partnership name shall, in addition to meeting the requirements of Rule 1:21-1C(c), clearly designate that it is a partnership of or including other partnerships, limited liability partnerships, professional corporations, limited liability companies, or attorneys, as applicable. When any member of a limited liability partnership is a foreign partnership, foreign professional corporation, foreign limited liability company, or foreign attorney, the required designation shall also state this fact.