.

Case Law Alerts

New Jersey Supreme Court Rules Competitive Keyword Advertising by Attorneys Does Not Violate RPC

In re Opinion No. 735 of Supreme Ct. Advisory Comm. on Pro. Ethics, 260 N.J. 482 (2025)

January 1, 2026

by Zipporah E. Ridley

In a decision tackling competitive keyword advertising among attorneys, the Supreme Court of New Jersey sought to determine if this class of advertising was a violation of Rules of Professional Conduct (RPC).

State and county bar associations filed several petitions asking the Supreme Court to review a decision of the Supreme Court Advisory Committee on Professional Ethics on keyword advertising. That decision had determined it was permissible for an attorney or law firm to purchase a competitor’s name from an internet search engine as a keyword advertisement search term.

The court found that this type of advertising is proximity marketing, in which one attorney positions themselves next to a more successful competitor. This competitive advertisement is permissible and allows attorneys to ascertain the clients that the more successful attorney turned away. Moreover, the court found that, without any intention to mislead or deceive clients, the mere purchase and use of a competitor’s name is not a violation of RPC.

According to the court, when an attorney purchases the name of a competitor attorney or law firm, it is not classified as a communication nor is it subject to the RPC. Subsequently, the court found that purchasing a competitor’s name does not violate any RPC establishing that it is professional conduct for an attorney to “engage in conduct involving dishonesty, fraud, deceit or misrepresentation.”

Lastly, the court held that this practice, on its own, does not violate any RPC prohibiting attorneys from engaging in conduct “prejudicial to the administration of justice.”

This finding is not without dissent, Justice Fasciale believes this practice to be leeching and involving intentional misconduct.

Firm Highlights

Thought Leadership

Appellate Division Affirms Dismissal of Legal Malpractice Counterclaim Against Martin Law Firm

In Martin v. Loury, 2026 N.J. Super. Unpub. LEXIS 1617 (App. Div. July 15, 2026), Martin Law Firm represented Kirk Loury in an employment matter Mr. Loury filed against his former employer, Concord Equity Group Advisors LLC (“Concord”). The allegations included, among other things, that Loury was not fairly compensated for his employment with Concord. After a bench trial finding in Loury’s favor, the Appellate Division remanded this matter in February 2016 for a second trial. During the second trial, Concord CEO, Lee Argush, testified to lower compensation estimate than first trial. On remand, the second trial judge awarded Mr. Loury the same damages as the first judge, finding Mr. Argush not credible. After the findings during the second trial, Martin Law Firm filed an action against Mr. Loury to recover legal fees and costs of representing Mr. Loury in a second bench trial and Mr. Loury filed a counterclaim against Martin Law Firm for legal malpractice, alleging he should have received an even higher award in the second bench trial. In this allegation, Mr. Loury, through his expert, claimed that Martin Law Firm should have recalled Mr. Loury to the stand to rebut Mr. Argush’s testimony to allege an alternative theory of damages. Mr. Loury’s expert admitted that the second judge already rejected Mr. Argush's theory and accepted Loury's damages theory. The trial court barred Mr. Loury’s expert and dismissed Loury's counterclaim with prejudice before convening the collection trial, and the jury ruled in Martin Law Firm’s favor. Mr. Loury appealed the trial court's pretrial rulings barring his liability expert from testifying in support of his legal malpractice counterclaim, denying his motion for summary judgment on that counterclaim, and denying his motion to amend his counterclaim by adding attorney Joseph A. Martin as a codefendant. In affirming the trial court’s decision, the Appellate Division held that the trial court properly excluded Loury’s expert testimony in the counterclaim against Martin Law Firm because the expert could not explain how calling Loury as a rebuttal witness would have increased damages when the second judge already rejected Mr. Argush's testimony and accepted Loury's damages theory, making the expert’s causation opinion speculative. The Appellate Division also held that the trial court properly denied Mr. Loury's summary judgment motion on his malpractice counterclaim because reasonable minds could differ on whether Mr. Martin's alleged failures would have changed the second judge's damages award, given the judge already found Mr. Argush not credible, creating genuine factual disputes precluding summary judgment. Also, the Appellate Division held that the trial court properly denied Loury's May 2023 motion to add Joseph Martin individually because the statute of limitations expired in February 2022, six years after the 2016 appellate remand when Mr. Loury incurred new legal costs, and relation back did not apply because Mr. Loury knew Mr. Martin's identity throughout and strategically chose to sue only Martin Law Firm in his 2019 counterclaim.