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In its most general sense, the practice of law involves giving
legal advice Legal advice is the giving of a professional or formal opinion regarding the substance or procedure of the law in relation to a particular factual situation. The provision of legal advice will often involve analyzing a set of facts and advising a p ...
to clients, drafting legal documents for clients, and representing clients in legal
negotiation Negotiation is a dialogue between two or more parties to resolve points of difference, gain an advantage for an individual or Collective bargaining, collective, or craft outcomes to satisfy various interests. The parties aspire to agree on m ...
s and
court A court is an institution, often a government entity, with the authority to adjudicate legal disputes between Party (law), parties and Administration of justice, administer justice in Civil law (common law), civil, Criminal law, criminal, an ...
proceedings such as
lawsuit A lawsuit is a proceeding by one or more parties (the plaintiff or claimant) against one or more parties (the defendant) in a civil court of law. The archaic term "suit in law" is found in only a small number of laws still in effect today ...
s, and is applied to the professional services of a
lawyer A lawyer is a person who is qualified to offer advice about the law, draft legal documents, or represent individuals in legal matters. The exact nature of a lawyer's work varies depending on the legal jurisdiction and the legal system, as w ...
or
attorney at law Attorney at law or attorney-at-law, usually abbreviated in everyday speech to attorney, is the preferred term for a practising lawyer in certain jurisdictions, including South Africa (for certain lawyers), Sri Lanka, the Philippines, and the Unit ...
,
barrister A barrister is a type of lawyer in common law jurisdiction (area), jurisdictions. Barristers mostly specialise in courtroom advocacy and litigation. Their tasks include arguing cases in courts and tribunals, drafting legal pleadings, jurisprud ...
,
solicitor A solicitor is a lawyer who traditionally deals with most of the legal matters in some jurisdictions. A person must have legally defined qualifications, which vary from one jurisdiction to another, to be described as a solicitor and enabled to p ...
, or
civil law notary Civil-law notaries, or Latin notaries, are lawyers of contentious jurisdiction, noncontentious private law, private civil law (legal system), civil law who draft, take, and record legal instruments for private parties, provide legal advice and gi ...
. However, there is a substantial amount of overlap between the practice of law and various other professions where clients are represented by agents. These professions include real estate,
banking A bank is a financial institution that accepts Deposit account, deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital m ...
,
accounting Accounting, also known as accountancy, is the process of recording and processing information about economic entity, economic entities, such as businesses and corporations. Accounting measures the results of an organization's economic activit ...
, and
insurance Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect ...
. Moreover, a growing number of
legal document assistant A legal document assistant (LDA, also known as "document technician", "legal document preparer", "legal technician", "online legal document provider" or "legal document clerk") in the United States is a person who is a non-lawyer but authorized to ...
s (LDAs) are offering services which have traditionally been offered only by lawyers and their employee paralegals. Many documents may now be created by
computer A computer is a machine that can be Computer programming, programmed to automatically Execution (computing), carry out sequences of arithmetic or logical operations (''computation''). Modern digital electronic computers can perform generic set ...
-assisted drafting libraries, where the clients are asked a series of questions that are posed by the
software Software consists of computer programs that instruct the Execution (computing), execution of a computer. Software also includes design documents and specifications. The history of software is closely tied to the development of digital comput ...
in order to construct the
legal documents Legal instrument is a legal term of art that is used for any formally executed written document that can be formally attributed to its author, records and formally expresses a legally enforceable act, process, or contractual duty, obligation, or ...
. In addition, regulatory
consulting firm A consulting firm or simply consultancy is a professional service firm that provides expertise and specialised labour for a fee, through the use of consultants. Consulting firms may have one employee or thousands; they may consult in a broad ra ...
s also provide advisory services on
regulatory compliance In general, compliance means conforming to a rule, such as a specification, policy, standard or law. Compliance has traditionally been explained by reference to deterrence theory, according to which punishing a behavior will decrease the viol ...
that were traditionally provided exclusively by law firms.


United States

In the
United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
, the practice of law is conditioned upon admission to practice of law, and specifically admission to the bar of a particular
state State most commonly refers to: * State (polity), a centralized political organization that regulates law and society within a territory **Sovereign state, a sovereign polity in international law, commonly referred to as a country **Nation state, a ...
or other territorial
jurisdiction Jurisdiction (from Latin 'law' and 'speech' or 'declaration') is the legal term for the legal authority granted to a legal entity to enact justice. In federations like the United States, the concept of jurisdiction applies at multiple level ...
. The
American Bar Association The American Bar Association (ABA) is a voluntary association, voluntary bar association of lawyers and law students in the United States; national in scope, it is not specific to any single jurisdiction. Founded in 1878, the ABA's stated acti ...
and the
American Law Institute The American Law Institute (ALI) is a research and advocacy group of judges, lawyers, and legal scholars limited to 3,000 elected members and established in 1923 to promote the clarification and simplification of United States common law and i ...
are among the organizations that are concerned with the interests of lawyers as a profession and the promulgation of uniform standards of professionalism and ethics, but regulation of the practice of law is left to the individual states, and their definitions vary.


Unauthorized practice of law

"Unauthorized practice of law" (UPL) is an act sometimes prohibited by
statute A statute is a law or formal written enactment of a legislature. Statutes typically declare, command or prohibit something. Statutes are distinguished from court law and unwritten law (also known as common law) in that they are the expressed wil ...
,
regulation Regulation is the management of complex systems according to a set of rules and trends. In systems theory, these types of rules exist in various fields of biology and society, but the term has slightly different meanings according to context. Fo ...
, or court rules.


Definition

The definition of "unauthorized practice of law" is variable, and is often conclusory and tautological, ''i.e.'', it is the doing of a lawyer's or
counsel A counsel or a counsellor at law is a person who gives advice and deals with various issues, particularly in legal matters. It is a title often used interchangeably with the title of ''lawyer''. The word ''counsel'' can also mean advice given ...
or's work by a non-lawyer for money. There is some agreement that appearing in a legally constituted court in a legal proceeding to represent clients (particularly for a fee) is considered to be unauthorized practice of law. But other variations are subject to interpretation and conflicting regulation, particularly as to the scope and breadth of the prohibition. ''Black's Law Dictionary'' defines unauthorized practice of law as "The practice of law by a person, typically a nonlawyer, who has not been licensed or admitted to practice law in a given jurisdiction." The Restatement (Third) of the Law Governing Lawyers notes:
The definitions and tests employed by courts to delineate unauthorized practice by non-lawyers have been vague or conclusory, while jurisdictions have differed significantly in describing what constitutes unauthorized practice in particular areas.
Certain activities, such as the representation of another person in litigation, are generally proscribed. Even in that area, many jurisdictions recognize exceptions for such matters as small-claims and landlord-tenant tribunals and certain proceedings in administrative agencies. Moreover, many jurisdictions have authorized law students and others not locally admitted to represent indigent persons or others as part of clinical legal education programs. ...
What is more controversial is out-of-court activities, particularly drafting of documents and giving advice, and whether that is considered to be unauthorized practice of law. Some states have defined the "practice of law" to include those who appear as a representative in arbitration or act as arbitrators in disputes. For example, there is a growing conflict between the multijurisdictional practice of law in arbitration proceedings in the financial service industry and state regulation of lawyers. With a few exceptions, the general rule is that an appearance at an arbitration does not constitute the practice of law. . The
United States bankruptcy court United States bankruptcy courts are courts created under Article I of the United States Constitution. The current system of bankruptcy courts was created by the United States Congress in 1978, effective April 1, 1984. United States bankruptcy ...
for the Eastern District of Tennessee has held that "providing clients with explanations or definitions of such legal terms of art ... is, by itself, giving legal advice." The North Carolina State Bar has held that "definition of lien law terms, warnings regarding time requirements, and reminders about sending out preliminary notices within five to ten days of beginning work, when combined with its preparation of legal documents n the manner described constitute providing legal advice."North Carolina State Bar v. Lienguard, Inc.
2014 NCBC 11
/ref>
Texas Texas ( , ; or ) is the most populous U.S. state, state in the South Central United States, South Central region of the United States. It borders Louisiana to the east, Arkansas to the northeast, Oklahoma to the north, New Mexico to the we ...
law generally prohibits a person who is not an attorney from representing a client in a personal injury or property damage matter, and punishes a violation as a misdemeanor. Some states also criminalize the separate behavior of falsely claiming to be lawyer (in Texas, for example, this is a felony if done to obtain economic benefit).


Enforcement

Criminal laws and enforcement of "Unauthorized Practice of Law (UPL)" statutes is the organized bar's preferred method. In Florida, the unauthorized practice of law is a third degree felony, which is punishable by up to six months in prison and $5000 in fines.
New Jersey New Jersey is a U.S. state, state located in both the Mid-Atlantic States, Mid-Atlantic and Northeastern United States, Northeastern regions of the United States. Located at the geographic hub of the urban area, heavily urbanized Northeas ...
has a law which makes it a " disorderly persons offense" to knowingly to engage in the unauthorized practice of law, and a "crime in the fourth degree" to commit UPL if one (a) creates a false impression that one is a lawyer; (b) derives a benefit from UPL, or (c) causes an injury by UPL. In a 2015 survey by the American Bar Association, Florida had the largest budget—$1.8 million—nationwide for prosecuting the unauthorized practice of law. The state has interest in protecting the public from having unqualified persons hold themselves out as licensed professionals, but the existence of laws against unauthorized practice of itself does not guarantee that unlicensed professionals will be detected and those laws enforced.


History and future

The American Bar Association proposed model rules regarding the unauthorized practice of law, which Judge
Richard Posner Richard Allen Posner (; born January 11, 1939) is an American legal scholar and retired United States circuit judge who served on the U.S. Court of Appeals for the Seventh Circuit from 1981 to 2017. A senior lecturer at the University of Chicag ...
characterized as an attempt to perpetuate a monopoly to the disadvantage of consumers. The judge observed that the legal profession is "a cartel of providers of services relating to society's laws" which cartel's focus is to restrict entry. "Modern economists call it '
rent seeking Rent-seeking is the act of growing one's existing wealth by manipulating the social or political environment without creating new wealth. Rent-seeking activities have negative effects on the rest of society. They result in reduced economic effic ...
', but throughout recorded history, skilled crafts and professions have tried to raise their members' incomes by using the power of the state to limit entry." The practice of law was not formally regulated in
Arizona Arizona is a U.S. state, state in the Southwestern United States, Southwestern region of the United States, sharing the Four Corners region of the western United States with Colorado, New Mexico, and Utah. It also borders Nevada to the nort ...
for a time. However, the Arizona Supreme Court found independent inherent authority to regulate the practice of law. Arizona's statute criminalizing unauthorized practice of law was allowed to lapse from a sunset law in 1985. Rose suggests that legislative proposals to recriminalize the unauthorized practice of law have heretofore failed because of anti-lawyer sentiment in Arizona politics. Moreover, Rose asserts that resentment lingers from an unpopular interpretation of the old statute in ''State Bar v. Arizona Land Title & Trust Co.'', 90 Ariz. 76 (1961). This ruling imposed sanctions on a title and realty company engaged in drafting contracts. Rose says, "Throughout the country, various jurisdictions have developed numerous tests for defining the practice of law. But none is broader nor more all-encompassing than that articulated in ''Arizona Title''."


Attorney participation

In the United States, the rules of professional conduct generally prohibit an attorney from assisting a non-attorney from engaging in the unauthorized practice of law. An attorney therefore may not partner with or split fees with a non-attorney in the performance of any sort of legal work. Furthermore, an attorney may not employ a disbarred or suspended attorney in a legal practice where former clients of the disbarred or suspended attorney will be represented.


Singapore


Unauthorized practice of law

In
Singapore Singapore, officially the Republic of Singapore, is an island country and city-state in Southeast Asia. The country's territory comprises one main island, 63 satellite islands and islets, and one outlying islet. It is about one degree ...
, it is a criminal offence if an unauthorised person pretends to be a qualified lawyer or carries out any act that may be performed only by a qualified lawyer. The relevant provision is section 33 of the Legal Profession Act. The acts that may be performed only by a qualified lawyer are set out in section 33 of the Legal Profession Act and case law.


See also

*
Disbarment Disbarment, also known as striking off, is the removal of a lawyer from a bar association or the practice of law, thus revoking their law license or admission to practice law. Disbarment is usually a punishment for unethical or criminal conduc ...
*
Law Law is a set of rules that are created and are enforceable by social or governmental institutions to regulate behavior, with its precise definition a matter of longstanding debate. It has been variously described as a science and as the ar ...
*
Law degree A law degree is an academic degree conferred for studies in law. Some law degrees are professional degrees that are prerequisites or serve as preparation for legal careers. These generally include the Bachelor of Civil Law, Bachelor of Laws, an ...
*'' Law Society of British Columbia v. Mangat''


References


External links

* {{Authority control Solicitors Monopoly (economics) Competition law Jurisprudence