|Is that ethically right?|
It isn't an issue of ethics. It's an issue of conduct.
To me No but the tax consequences of said have proven to be beneficial
The tax consequences are no better than those accruing to individuals.
Nothing illegal here just smart legal.
I doubt it. I've already implied that the LLP is a questionable business form. Those lawyers may think they're severally protected, but they aren't. It isn't prudent to erect a nominal wall and then think one is protected from the actions of the group. It is a partnership, isn't it? The LLP hasn't been around long enough to establish legal precedents in the scope of implied protection.