T H E U N A U T H O R I Z E D P R A C T I C E O F L A W I N S O U T H C A R O L I N A

© 2 0 1 9 B Y T H E S O U T H C A R O L I N A B A R . A L L R I G H T S R E S E R V E D

T H I S M A T E R I A L M A Y N O T B E R E P R O D U C E D I N W H O L E O R I N P A R T W I T H O U T T H E E X P R E S S W R I T T E N P E R M I S S I O N O F T H E S C B A R .

SOUTHCAROLINACODE§40-5-310NopersonmayeitherpracticelaworsolicitthelegalcauseofanotherpersonorentityinthisStateunlessheisenrolledasamemberoftheSouthCarolinaBarpursuanttoapplicablecourtrules,orotherwiseauthorizedtoperformprescribedlegalactivitiesbyactionoftheSupremeCourtofSouthCarolina.ThetypeofconductthatisthesubjectofanychargefiledpursuanttothissectionmusthavebeendefinedastheunauthorizedpracticeoflawbytheSupremeCourtofSouthCarolinapriortoanychargebeingfiled.Apersonwhoviolatesthissectionisguiltyofafelonyand,uponconviction,mustbefinednotmorethanfivethousanddollarsorimprisonednotmorethanfiveyears,orboth.

UNAUTHORIZEDPRACTICEOFLAW(UPL)

• ApersonwhoisnotanattorneylicensedtopracticeinSouthCarolinamaynotrenderaservicethatconstitutesthepracticeoflaw.

• UnlessyouareamemberoftheSouthCarolinaBarorotherwiseauthorizedtoperformprescribedlegalactivitiesbyactionoftheSouthCarolinaSupremeCourt,youareprohibitedfromthepracticeoflaw.

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CRIMINALLIABILITY• PursuanttoS.C.Code§40-5-310,apersonwhoengagesintheunauthorizedpracticeoflawisguiltyofafelonyand,uponconviction,mustbefinednotmorethan$5,000orimprisonednotmorethanfiveyears,orboth.

• Thisisthepenaltyperoffense.

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PUBLICPOLICYANDUPL• “Thestateprohibitstheunauthorizedpracticeoflawnotfortheeconomicprotectionofthelegalprofession,butrathertoprotectthepublicfromtheconsequencesoferroneousadvicefromthoseuntrainedinthelaw.”

StateofSouthCarolinavs.BuyersServiceCompany,Inc.,292SC426(S.C.1987)

• “Thegoaloftheprohibitionagainsttheunauthorizedpracticeoflawistoprotectthepublicfromincompetent,unethical,orirresponsiblerepresentation.”

RenaissanceEnterprises,Inc.v.SummitTeleservices,Inc.,334SC649(S.C.1999)5

WHODEFINESUPL?• Statelawdoesnotsetforthalistofactivitiesthatconstitutetheunauthorizedpracticeoflaw.

• TheSouthCarolinaSupremeCourtdecidesonacasebycasebasiswhethertheconductatissuesisconsideredtheunauthorizedpracticeoflaw.

• Therefore,welooktoSupremeCourtcaselawtofindwhichactivitiesareprohibitedforindividualswhoarenotlicensedattorneys.

WHATISTHEPRACTICEOFLAW?• Itisneitherpracticablenorwisetoattemptacomprehensivedefinitionbywayofasetofrules.Thebettercourseistodecidewhatisandwhatisnottheunauthorizedpracticeoflawinthecontextofanactualcaseorcontroversy.

InreUnauthorizedPracticeofLawRulesProposedbytheSCBar,309S.C.304,422S.E.2d123(1992)

WHATISTHEPRACTICEOFLAW?• “preparationofpleadingsandotherpapersincidenttoactionsandspecialproceedings”• “themanagementofactionsandproceedingsonbehalfofclientsbeforejudgesandcourts”• “conveyancingandthepreparationoflegalinstrumentsofallkinds”• “alladvicetoclients,andallactiontakenfortheminmattersconnectedwiththelaw”• “actingprofessionallyinlegalformalities,negotiations,orproceedingsbythewarrantorauthorityoftheirclients”

InreDuncan,83S.C.186,189,65S.E.210(1909)

ACTIVITIESTHATARETHEPRACTICEOFLAW

• Preparinglegaldocuments.• Presentinglegaldocumentsforexecution.• Givinglegaladviceoransweringlegalquestions.• Appearingincourtonbehalfofsomeoneelse.• Performingarealestateormortgageclosing.• Titlesearchandpreparingtitledocuments.• Settlementnegotiations.• Consumerdebtpooling.

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COMMONUPLACTORS• Paralegals•Notaries• Jailhouselawyers•HomeownersAssociations• Titlecompanies•Disbarred/suspendedlawyers•Out-of-Statelawyers• Unregisteredforeignlawyers•Onlineself-helplegalservices

CASE EXAMPLES INVOLVING UPL-PARALEGALS

JohnDoe,aparalegalinalawfirm,wantedtoconducteducationalseminarsforthepublicrelatedtowillsandtrust.ThecourtalsoconsideredwhetheritwasUPLforaparalegaltomeetwithclientsprivatelytoanswergeneralquestionsaboutwills,trusts,andestateplanning.

• Courtfoundthatofferinglegalpresentationstothepublicandansweringestateplanningquestionsinlegalseminarsorprivateclientinterviewsconstitutesthepracticeoflaw.• Courtalsoreiteratedthataparalegal‘spreparatorytasksmustbedoneunderanattorney’ssupervisionandthatansweringlegalquestionsconstitutesUPL.

Doev.Condon,341S.C.22,532S.E.2d879(2000)

CASE EXAMPLES INVOLVING UPL-PARALEGALS

Robinsonadvertisedhisservicesasaparalegalandhisbusinesscardandletterheadreferredtohimasa“paralegalconsultant.”Heperformedserviceswithoutattorneysupervision,solicitedclients,representedclientsincourt,andgavelegaladvice.

• TheCourtfoundRobinson’sadswereunlawfulsolicitations- thatitisunlawfulforsomeonenotanattorneytosolicitthecauseofanotherperson.• Evenifcourtappearanceisultimatelyauthorized,givingadvice,preparingpleadings,etc.priortoappearanceisnot.

Statev.Robinson,321S.C.286,468S.E.2d290(1996)

CASE EXAMPLES INVOLVING UPLJAILHOUSE LAWYERSMcLauren assistedotherinmatesinpreparingPCRapplicationsandreferredtohimselfasa“jailhouselawyer.”

Statev.McLauren,349S.C.488(2002),563S.E.2d346

• TheCourtfoundthatthoughhedidnotreceivecompensationforhisservices,McLauren didnotobtainleaveofcourtbeforeprovidinglegalservicesand,therefore,itwastheunauthorizedpracticeoflaw.• Inaddition,theCourtemphasizeditmustexercisesounddiscretionwhethertoallowrepresentationofanotherpersonbyanonlawyer.

CASE EXAMPLES INVOLVING UPL: HOMEOWNERS ASSOCIATIONSPeckandhiscompany,CommunityManagementGroup,managedHOAs,enforcingcovenantsandrulesandcollectingassessments.Theyalsopreparedandrecordednoticeofalienandrelateddocuments,broughtanactioninmagistrate’scourt,andfiledthejudgementinthecircuitcourt.– Advertisementsindicateditcould“handlecollections,lienfilingandSmallClaimsCourtactionsinhouse”andthatitcouldfilejudgmentswithoutuseofanattorney.

RogersTownsend&Thomas,PCv.Peck,419S.C.240,797S.E.2d396(2017)

• TheCourtfoundthatthegroupengagedinUPLwhenitrepresentedassociationsinmagistrate’scourt,filedjudgmentsincircuitcourt,preparedandrecordedliens,andadvertisedthatitcouldprovidelegalservices.

• Inordertoappearforacompany,anonlawyer“agent”mustbeanofficer,employee,orsomeonewitha“nexusorconnection”withthecompany– NOTathirdparty.

CASE EXAMPLES INVOLVING UPL-LEGAL SERVICES

Despain advertisedherbusinessunderthecategory“LegalServices”butdeniedthatshewasengagedinUPL.Shegavelegaladvicerelatedtofamilylawissuesandusedacomputersoftwareprogramtopreparelegaldocumentsforotherstopresentincourt.Despain alsomadecustomerssignanagreementtoabsolveherofliability.

Statev.Despain,319S.C.317,460S.E.2d576(1995)

• TheCourtfoundthatpreparationoflegaldocumentsisthepracticeoflawwhenitinvolvesthegivingofadvice,consultation,explanation,orrecommendationsonmattersoflaw.Itisalsothepracticeoflawtoinstructotherindividualsinhowtoprepareandexecutethosedocuments.

CASE EXAMPLES INVOLVING UPL-TITLE COMPANYDefendantwasacommercialtitlecompanythatassistedpeopleinpurchasingrealestate.Theypreparedlegaldocumentsrelatedtosales,providedtitlesearches,conductedclosingswithoutanattorneypresent,andcarriedlegalinstrumentstothecourthouseforrecording.

Statev.BuyersServiceCo.,Inc.,292S.C.426,357S.E.2d15(1987)

• TheCourtheldthatitisUPLtoprovidereports,opinionsorcertificateastostatusoftitlestorealestateandmortgageliens,topreparedocumentsaffectingtitletorealproperty,tohandlerealestateandmortgageloanclosings,andtophysicallytransportormaildocumentswhenpartofrealestatetransfer.

UPLANDREALESTATE

Theareathatseemstocreatethemostconfusionastowhatfallsunderthepracticeoflawisrealestate.

• TheSouthCarolinaSupremeCourthasheldthatanattorneymustconductallrealestateandmortgageloanclosings.

• However,anotarymaynotarizeloanmodificationdocumentswithoutanattorneypresentaslongasthenotarydoesnotprovidelegaladvice.

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ACTIVITIESTHATARENOTUPL

• State agencies may, by regulation, authorize people to appear and represent clients before the agency.

• CPAs may render professional assistance, including representation before agencies and the Probate Court, that is within their professional expertise and qualifications.

In re Unauthorized Practice of Law Rules Proposed by the SC Bar, 309 S.C. 304, 422 S.E.2d 123

ACTIVITIESTHATARENOTUPL

InreUnauthorizedPracticeofLawRulesProposedbytheSCBar,309S.C.304,422S.E.2d123

• Businessesmayberepresentedbyanofficer,agent,oremployeeincivilmagistrate’scourtproceedings.–“Agent”cannotbeathirdparty– onlysomeonewitha“nexusorconnection”withthebusiness.–Writtenauthorizationfromthecompany’spresident,chair,etc.mustbeprovided.–Businessassumesriskofanyproblemsresultingfromtherepresentation.

RogersTownsend&Thomas,PCv.Peck,419S.C.240,797S.E.2d396(2017)

ACTIVITIESTHATARENOTUPL• Policeofficersmayprosecutetrafficoffensesinmagistrate’scourtandmunicipalcourt.– Butonlythearrestingofficer(withassistanceofsupervisorifnecessary)

InreUnauthorizedPracticeofLawRulesProposedbytheSCBar,309S.C.304,422S.E.2d123

• Itispermissibleforprobationagentstopresentprobationrevocationcases.– Aprobationrevocationhearingisnotaformalcriminalproceeding.–Whenaprobationagentpresentsaprobationrevocationcase,theagentisactinginhisofficialcapacityandnotholdinghimselfouttothepublicasanattorney.

Statev.Barlow,372S.C.534,643S.E.2d682(2007)

UPL-RELATEDISSUES

• Impersonatingalawyer

•Notario publico fraud

• Immigrationservices

IMPERSONATINGALAWYERS.C.CodeofLaws§16-17-770(A)

Itisunlawfulforapersonotherthanalawyer,whoislicensedtopracticelawinthisStateorinanotherstateorjurisdictionintheUnitedStatesandnotdisbarredorsuspendedfromthepracticeoflawinanystateorjurisdiction,torepresenttoanypersonthatheisalawyerforthepurposeofsolicitingbusiness,obtaininganythingofvalue,orprovidinglegaladviceorassistance.

IMPERSONATINGALAWYER-PENALTIES

(1)forafirstoffense,isguiltyofamisdemeanorand,uponconviction,mustbefinednotmorethanonethousanddollarsorimprisonedfornotmorethanoneyear,orboth;

(2)forasecondoffense,isguiltyofamisdemeanorand,uponconviction,mustbefinednotmorethantwothousandfivehundreddollarsorimprisonedfornotmorethanthreeyears,orboth;and

(3)forathirdorsubsequentoffense,isguiltyofafelonyand,uponconviction,mustbefinednotmorethanfivethousanddollarsorimprisonedfornotmorethanfiveyears,orboth.

IMPERSONATINGALAWYER-RECENTCASE

• AmanposedasalawyerinColumbiaandthreatenedlegalactionagainstaChineserestaurant.• Healsoswindledpeopleontheinternetgettingup-frontfeestoassistthemwithlegalissues.– Ultimately,hepledguiltytowirefraud.– Hefacedsimilarlawyerimpersonationchargesinotherstateswhichweredismissedaspartofhisplea.

“PhonylawyerwhocheatedColumbiaChineserestaurant,bilkedwomengetsprison,”JohnMonk,TheState,2/5/2019,https://www.thestate.com/news/local/crime/article225542390.html

NOTARIOPUBLICOFRAUD• Individualsrepresentthemselvesasattorneysorpersonsqualifiedtoprovidelegaladviceorservices.

• Theyvictimizemembersofimmigrantcommunitieswhoassociateadifferentmeaningto“Notario Publico.”

• BecausethistermhasadifferentmeaninginpartsofLatinAmerica,itmaybeconfusingtonon-Englishspeakers.

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NOTARIOPUBLICOFRAUD�Theseindividualsoftenalsoprovideserviceswhichconstitutetheunauthorizedpracticeoflaw.

� Inaddition,manyofthosewhoidentifythemselvesasnotarios publico arenotnotariespublicand,therefore,arenotauthorizedtoperformnotarialacts.

�PursuanttoS.C.Code§26-1-90,anotarycannotusetheterm“notario publico”inanyadvertisementsornotices. 26

REGISTRATIONOFIMMIGRATIONASSISTANCESERVICE

• S.C.CodeofLaws§40-83-30permitspeopletoprovidelimitedimmigrationassistanceasoutlinedinthestatute.

• AnyoneprovidingtheseservicesmustobtainabusinesslicensefromLLR(andfromalocalgoverningauthoritywhererequired).

• Inaddition,anyoneprovidingapermittedservicemustpostthefollowinglanguage:"IAMNOTANATTORNEYLICENSEDTOPRACTICELAWANDMAYNOTGIVELEGALADVICEORACCEPTFEESFORLEGALADVICE."

REGISTRATIONOFIMMIGRATIONASSISTANCESERVICE

Apersonofferingimmigrationassistancemaynot:

(1)acceptpaymentinexchangeforprovidinglegaladviceoranyotherassistancethatrequireslegalanalysis,legaljudgment,orinterpretationofthelaw;

(2)refusetoreturndocumentssuppliedby,preparedonbehalfof,orpaidforbythecustomerupontherequestofthecustomer.Thesedocumentsmustbereturneduponrequestevenifthereisafeedisputebetweentheimmigrationassistantandthecustomer;

REGISTRATIONOFIMMIGRATIONASSISTANCESERVICE

Apersonofferingimmigrationassistancemaynot:(3)representoradvertise,inconnectionwithprovidingassistanceinimmigrationmatters,othertitlesorcredentials,including,butnotlimitedto,"notarypublic"or"immigrationconsultant",thatcouldcauseacustomertobelievethatthepersonpossessesspecialprofessionalskillsorisauthorizedtoprovideadviceonanimmigrationmatter,providedthatacertifiednotarypublicmayusetheterm"notarypublic"iftheuseisaccompaniedbythestatementthatthepersonisnotanattorney.Theterm"notarypublic"maynotbetranslatedintoanotherlanguage;

REGISTRATIONOFIMMIGRATIONASSISTANCESERVICE

Apersonofferingimmigrationassistancemaynot:

(4)providelegaladvice,recommendaspecificcourseoflegalaction,orprovideanyotherassistancethatrequireslegalanalysis,legaljudgment,orinterpretationofthelaw;or

(5)makeanymisrepresentationorfalsestatement,directlyorindirectly,toinfluence,persuade,orinducepatronage.

REGISTRATIONOFIMMIGRATIONASSISTANCESERVICE

• Violationsofthischaptermayresultinacivilpenaltyofupto$1,000.00perviolationandrevocationofthebusinesslicense.• Anyonewhoknowinglyandwillfullymakesafalse,fictitious,orfraudulentstatementorrepresentationinanydocumentaspartofprovidingimmigrationassistance(orwhoaidsorabetssomeonewhodoesorsolicitsorconspirestodoso)isguiltyofafelony.• Thepenaltyis:–Afineinthediscretionofthecourtor– Imprisonmentnotmorethan10yearsorboth–Disgorgingofanybenefitreceivedormakingrestitution

UNAUTHORIZEDPRACTICEORMULTIJURISDICTIONALPRACTICE?

• Rule2(q),RLDE:Definitionof‘lawyer’

• Rule5.5,RPC:MultijurisdictionalPractice

• Rule418,SCACR:Advertising&Solicitationby‘unlicensed’lawyers

• Rule404,SCACR:ProHacViceAdmission

• Rule405,SCACR:LimitedCertificateofAdmissionforIn-HouseCounsel

SouthCarolinaJurisdictionOver‘Unlicensed’Lawyers

UNAUTHORIZEDPRACTICEORMULTIJURISDICTIONALPRACTICE?EstablishesjurisdictionofODC,CLC,SupremeCourtforregulationoflawyersandenforcementofconductrules

Definitionof‘lawyer’includes:• AlawyernotadmittedinSCwhoprovidesorofferstoprovidelegalservicesinSC

• AlawyernotadmittedinSCwhoseadvertisementsorsolicitationsaresubjecttoRule418,SCACR

UNAUTHORIZEDPRACTICEORMULTIJURISDICTIONALPRACTICE?

Rule5.5(b)ProhibitsUPL:

“A lawyer shall not practice law in ajurisdiction in violation of the regulation ofthe legal profession in that jurisdiction orassist another in doing so.”

UNAUTHORIZEDPRACTICEORMULTIJURISDICTIONALPRACTICE?

Rule5.5(b)ProhibitsOut-of-StateLawyersfrom:

•establishing office or other systematic andcontinuous presence for the practice of lawin SC•holding out to the public or otherwiserepresenting that the lawyer is admitted topractice law in SC

UNAUTHORIZEDPRACTICEORMULTIJURISDICTIONALPRACTICE?

However,underRule5.5(d),anout-of-statelawyerispermittedtoestablishanofficeorothersystematicandcontinuouspresenceinSouthCarolinaforthepurposeofprovidinglegalservicespermittedbyfederallaw.

UNAUTHORIZEDPRACTICEORMULTIJURISDICTIONALPRACTICE?

However,underRule5.5(d),anout-of-statelawyerispermittedtoestablishanofficeorothersystematicandcontinuouspresenceinSouthCarolinaforthepurposeofprovidinglegalservicespermittedbyfederallaw.

UNAUTHORIZEDPRACTICEORMULTIJURISDICTIONALPRACTICE?

•Presencemaybe“systematicandcontinuous”evenifthelawyerisnotphysicallypresentinSC•Nosingletesttodeterminewhetherservicesareprovidedona"temporarybasis"inSC•Servicesmaybe"temporary"evenifprovidedonarecurringbasis,orforanextendedperiodoftime(suchasasinglelengthynegotiationorlitigation)

UNAUTHORIZEDPRACTICEORMULTIJURISDICTIONALPRACTICE?

Rule5.5(c),RPC,permitsunlicensedlawyerstoprovidelegalservicesona“temporarybasis”underfourcircumstances…

UNAUTHORIZEDPRACTICEORMULTIJURISDICTIONALPRACTICE?• InassociationwithaSClawyerwhoactivelyparticipates;OR•Relatedtoapending/potentialproceedingwithPHVadmissionorreasonableexpectationofPHV;OR•ADRrelatedtorepresentationofanexistingclientinhomejurisdiction;OR•NotcourtorADR,butotherwiserelatedtothelawyer'srepresentationofexistingclientinhomejurisdiction.

UPLRESOURCESSouthCarolinaBarUPLCommittee950TaylorStreetColumbia,SC29201803-799-6653www.scbar.org

SCAttorneyGeneral’sOfficeP.O.Box11549Columbia,SC29211803-734-3970www.scag.gov

SCDept.ofLabor,Licensing&Regulation110Centerview DriveColumbia,SC29210803-896-4300www.llr.state.sc.us

SCDept.ofConsumerAffairs2221DevineStreet,SecondFloorP.O.Box5757Columbia,SC29250803-734-4200www.scconsumer.gov

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T H I S M AT E R I A L M A Y N O T B E R E P R O D U C E D I N W H O L E O R I N P A R T W I T H O U T T H E E X P R E S S W R I T T E N P E R M I S S I O N O F T H E S C B A R .