A win for legal services programs in California! The California Supreme Court has overturned the Court of Appeal decision in Frye v. Tenderloin Housing Clinic.

The California Supreme Court decision, filed March 9, 2006, holds that on the basis of the evident legislative intent to expand the nonprofit practice of law, the historical exceptions to the common law rule prohibiting nonprofit law practice, and the constitutional problems that would be presented by the Court of Appeal's interpretation, that section 13406(b) CANNOT be construed to govern all nonprofit corporations that provide legal services to third parties. The Supreme Court chose not to remand to the trial court level for a full exploration of the authority under which THC may practice law in the corporate form, because the court concluded that the trial court correctly granted judgment on the pleadings in favor of THC on the issue of remedy.