Sunday, May 29, 2022

Crotty -SDNY fed judge - blocks Unauthorized Practice of Law laws


 

Paul Crotty, a Manhattan federal judge, has enjoined enforcement of Unauthorized Practice of Law measures against "Upsolve". In Upsolve v. Letitia James, SDNY Case 1:22-cv-00627-PAC,  Crotty explains:

“The orderly functioning of our judicial system and the protection of our citizens require that legal advice should be offered only by those who possess the requisite qualifications and authorization for the practice of law. At the same time, one of the most fundamental principles of our system of government prohibits any restraint on a citizen’s right to disseminate his views on important public issues.” Dacey v. New York Cty. Lawyers’ Ass’n, 423 F.2d 188, 189 (2d Cir. 1969). 

Sometimes these two principles conflict, and one must yield to the other. This case exemplifies that conflict. Plaintiffs—a non-profit organization and a non-lawyer individual—seek to encroach upon a small part of what has heretofore been the exclusive domain of members of the Bar. Plaintiffs have crafted a program that would train non-lawyers to give legal advice to low-income New Yorkers who face debt collection actions. 

Specifically, Plaintiffs want to help those New Yorkers fill out checkboxes on a one-page answer form provided by the State, in the hopes that more people will avoid defaulting outright in such actions. The legal advice would be free and confined to helping clients complete the State’s one-page form. Plaintiffs’ proposal faces one problem: by giving legal advice as non-lawyers, their activities would constitute the unauthorized practice of law (“UPL”) under several New York statutes. They risk being sued by the Defendant in this case, the New York State Attorney General. 

Thus, Plaintiffs seek an injunction that prevents the Attorney General from enforcing the UPL rules against them. The Court concludes a preliminary injunction is warranted. The UPL rules cannot be applied to Plaintiffs’ program because the First Amendment protects their legal advice as speech, and the UPL rules are not narrowly tailored to satisfy strict scrutiny in this context."  

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