austin R. Vance

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Legal Cooperative FAQs

What is a cooperative?

Cooperative is short for “cooperative association,” which is a corporation or limited liability company “operating on a cooperative basis and allocating amounts to patrons on the basis of the business done with or for such patrons. . . .” 26 C.F.R. § 1.522-1. Patrons are the people doing business on a cooperative basis. Id. The definition of a cooperative is further broken down into three (3) guiding principles:


(1) “Subordination of capital, both as regards control over the cooperative undertaking, and as regards the ownership of the pecuniary benefits arising therefrom;

(2) democratic control by the worker-members themselves; and

(3) the vesting in and the allocation among the worker-members of all fruits and increases arising from their cooperative endeavor (i.e., the excess of the operating revenues over the costs incurred in generating those revenues), in proportion to the worker-members' active participation in the cooperative endeavor.”


Puget Sound Plywood, Inc. v. Comm'r, 44 T.C. 305, 308 (1965).

Subornation of capital means that the governing documents of the company are written so the workers of the cooperative both enjoy financial benefit of the cooperative operating as a business and manage the cooperative itself. Consequently, outside investors are uncommon for cooperatives as it is unlikely they would gain the usual economic benefits that come from investing in a different businesses—unless they are active patrons of the cooperative as well.

What is a legal cooperative?

A legal cooperative is simply a cooperative association made up of attorneys. The attorneys may or may not practice in the same legal areas, but all attorneys manage the cooperative as board members. Legal cooperatives are subject to the same ethical and professional standards of any other law firm. According to the United States Federation of Workers’ Cooperatives, there are only three (3) legal cooperatives in the United States, and All Rise! Is the only legal cooperative in the continental United States outside of the State of Washington.

Why choose a legal cooperative over a traditional partner-track law firm for my case, transaction, or project?

The main difference between a legal cooperative and a partner-track law firm is that the cooperative does not have a hierarchy of attorneys divided between associates and partners. Traditionally, partners own the equity interest in the law firm and the associates are employees. In some cases, the partners do little work but keep the vast majority of income generated by their associates. The associates, in turn, work hard at the law firms in the hope that they will be offered a partnership. In the meantime, however, they are usually only paid a small portion of the income that they generated for the law firm through their work. In contrast, there are no partners or associates at a legal cooperative. Instead, there is one class of attorney—a patron. Patron-attorneys are entitled to receive the financial benefit of their work after expenses are paid by the cooperative as memorialized within the Operating Agreement, or other governing document. The primary benefits of patron-attorneys include:


True Commitment. They select their own cases and projects, meaning that attorney-patrons will only work on legal matters they actually believe in. At a traditional law firm, your issue may be handed off to an associate that has no interest, belief, or desire to work for you.

Customized Services. Legal cooperatives offer tailored legal services, as any client can select and retain multiple attorney-patrons from different specialties instead of hiring a generic law firm that practices any legal area necessary for that first pitch-meeting.

Proper Incentives. Finally, as previously mentioned, the attorney-patrons have a direct incentive in your success and they know it. Unlike a traditional associate that may not receive any additional benefit from putting maximum effort into a case, attorney-patrons are not paid by the cooperative unless they are successful with their own book of business and caseload.

What is the difference between a worker patron and producer patron?

The cooperative structure distinguishes between various member contributions and roles, notably between worker patrons and producer patrons, each with unique responsibilities and rewards.


Worker Patrons:
» Worker patrons, also known as worker-members,embody the dual role of being both employees and owners of the cooperative.

» Their engagement is twofold: they contribute labor to the cooperative's operations and participate actively in its governance.

» Decision-making rights of worker patrons extend to workplace governance, policy formulation, and strategic direction, ensuring democratic involvement in the cooperative's progression.

» The remuneration of worker patrons typically aligns with their labor contributions, with profit or surplus distributions based on their work input, rather than on the capital they provide.


Producer Patrons:
» Producer patrons are individuals or entities engaged in the creation of goods or services that the cooperative distributes,markets, or sells.

» This membership can vary widely, from farmers inan agricultural cooperative to artists in a craft cooperative, contingent on the cooperative’s sector.

» In exchange for supplying their products or services, producer patrons gain from the cooperative’s collective capabilities in marketing, processing, and negotiation.

» Benefits accruing to producer patrons are typically proportional to the volume or value of their production that the cooperative handles.

The primary distinction between these patron types lies inthe nature of their contribution—labor for worker patrons versus products or services for producer patrons—and consequently, the basis for their cooperative benefits.

At All Rise!, the differentiation between worker and producer patrons is further nuanced by the firm’s unique context within the legal profession and its compliance with the regulations of the Oklahoma Bar Association. Worker patrons at All Rise! are Class-B owners of the Cooperative;most similar to partners or in-house counsel, with governance participation alongside the Executive Director. Conversely, producer patrons, without ownership stakes, collaborate akin to co-counsel, with limited system access and insurance coverage. Fundamentally, producer patrons are independent contractors that operate through All Rise! and may or may not have a separate operating law firm as well.

While All Rise! encourages a transition towards worker patron status, producer patron route remains attractive for established attorneys with established and recurring low operating and managerial cost(both in time and money), or attorneys that want to work with the other patrons for a while before fully committing. Either way, the cooperative always leaves the ultimate decision up to the patrons attorneys to make.

Is there anything that sets All Rise! apart from other cooperatives?

Yes! At All Rise! we have established Institutional Values that the Attorneys must adhere to through Work Tenets. Our Institutional Values include:


Economic Mobility. The firm is dedicated to enhancing the economic standing of its Patrons through profit sharing, fostering their financial growth and stability. This approach not only incentivizes our attorneys but also ties their personal success to the firm's overall performance, which can lead to improved financial circumstances and the achievement of personal ambitions.

Work Autonomy. The Cooperative upholds a culture where Patrons have the autonomy to select their cases, manage their work, and actively participate in decision-making. This mandate boosts productivity and work-life balance by valuing each team member's contributions and promoting self-motivation through collaborative practices, thereby driving creativity and personal fulfillment.

Holistic Well-Being. Understanding that wealth alone does not equate to happiness, the firm prioritizes the comprehensive well-being of its Patrons, promoting a lifestyle that supports physical, emotional, and social health. It aims to cultivate an atmosphere where the workforce can achieve a balanced life, enriching relationships, and personal satisfaction that extends beyond financial achievements.


These Institutional Values are enforced through the Cooperatives Work Tenets, that include:


Commitment to Reasonable Workloads. While other law firms have annual minimums its associates must meet, the Cooperative imposes a cap on weekly billable hours at forty (40) hours to ensure our attorneys provide quality service to our select clientele, manage their time effectively, prevent burnout, and maintain positive mental health. We active discourage our attorneys from overcommitment to avoid reliance on others for case management.

No Hierarchy Permitted Among Attorneys. A flat organizational structure is promoted to encourage collaborative work culture, respecting all ideas equally and allowing for equitable compensation without rank-based influence on litigation conduct, except for maintaining professional standards.

Flexibility and Work-Life Balance.The firm values personal well-being and work-life balance, granting attorneys the freedom to manage their own schedules while ensuring it does not adversely affect work productivity, with support available from the Director for mental health concerns.

Transparent Communication.All members of the firm are expected to communicate openly and honestly, with no retaliation for candidness, using clear deadlines and metrics for expectations, thereby fostering an informed and collaborative decision-making environment.

Embracing Innovation and Data-Driven Processes.The firm embraces new technologies and data-driven methods for efficiency, with a commitment to continuous learning and professional development, while not mandating the use of specific technologies.

Commitment to Diversity, Equity, and Inclusion. A commitment to fostering an inclusive environment that values diversity and equity, with an active role in promoting these values within the firm and the wider community, mindful of the diverse heritage of the firm's members.

Collaboration and Mentoring.The firm encourages a culture of mentorship and collaboration, where knowledge is shared and professional development is supported, contributing to a strong and supportive team dynamic. Moreover, the Cooperative is actively involved in the development of new attorneys in the field by providing any young Patron with mentors.

Fulfillment of Work Commitments. Attorneys have control over their work but must fulfill their commitments responsibly, considering current obligations and ensuring reliability in meeting client and firm expectations, with specific criteria in place to evaluate commitment to work obligations.

Where can I learn more about cooperatives?

There are many excellent organizations that offer more information on cooperatives. A few of our favorites include:

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