Ethics, Referral Agreements: Joint Venture Agreement Between Two Firms, Where One Firm Failed To Register As A Professional Law Corporation, Was Not Unenforceable As Against Public Policy

No Clients Were Harmed, So Enforcing The Agreement Was Fine Under The Circumstances.

               In Liberty Law Office, Inc. v. The Bloom Firm, Case Nos. A165269 et al. (1^st Dist., Div. 1 Mar. 20, 2024) (unpublished; opn. modified and rehearing denied), arbitrators, the lower court, and the appellate court all agreed that a Joint Venture Agreement (JVA) between two firms, even though The Bloom Firm did not properly register as a professional law corporation as required by statutes, was not unenforceable as against public policy.  Except in the unlicensed contractor area, not all contracts entered into by unlicensed entities are automatically void.  Here, registration was really for tax and personal liability protection for the firm, and the record showed no clients were harmed under the JVA—so there was no justification to declare the contract unenforceable under the operative facts.