North Dakota Unauthorized Practice of Law:

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1 Note: Current to March 19, 2015 North Dakota Unauthorized Practice of Law: (NOTE: North Dakota relies heavily on North Dakota Rule of Professional Conduct 5.5 to govern the Unauthorized Practice of Law) N.D. Cent. Code (2015) Practicing law and serving on courts of record without certificate of admission and without payment of annual license fee prohibited--penalty Except as otherwise provided by state law or supreme court rule, a person may not practice law, act as an attorney or counselor at law in this state, or commence, conduct, or defend in any court of record of this state, any action or proceeding in which the person is not a party concerned, nor may a person be qualified to serve on a court of record unless that person has: 1. Secured from the Supreme Court a certificate of admission to the bar of this state; and 2. Secured an annual license therefor from the state board of law examiners. Any person who violates this section is guilty of a class A misdemeanor. N.D. R. Prof. Conduct 5.5 Unauthorized Practice of Law (a) A lawyer shall not practice law in a jurisdiction where doing so violates the regulation of the legal profession in that jurisdiction. (b) A lawyer admitted to practice in another jurisdiction and not in this jurisdiction who performs legal services in this jurisdiction on a temporary basis does not engage in the unauthorized practice of law in this jurisdiction when: (1) the lawyer who is an employee of a client, acts on the client's behalf, or on behalf of the client's commonly owned affiliates, except for work for which pro hac vice admission or registration under Admission to Practice R.3 is required; (2) the lawyer acts with respect to a matter that arises out of the lawyer's representation of a client in a jurisdiction in which the lawyer is admitted to practice, except for work for which pro hac vice admission or registration under Admission to Practice R.3 is required; (3) with respect to matters for which registration or pro hac vice admission is available under Admission to Practice R.3, the lawyer is authorized to represent a client or is preparing for a matter in which the lawyer reasonably expects to be so authorized; (4) with respect to matters, transactions or proceedings pending in or substantially related to this jurisdiction and for which pro hac vice admission is not available under Admission to Practice R.3, the lawyer is associated in the matter, transaction or proceeding with a lawyer admitted to practice in this jurisdiction who actively participates in the representation of the client in the matter, transaction or proceeding; or (5) the lawyer performs a service that may be performed by a person without a license to practice law or without other authorization from a federal, state or local governmental body. (c) A lawyer admitted to practice in another jurisdiction but not in this jurisdiction, who establishes an office or whose presence is other than temporary in this jurisdiction does not engage in the unauthorized practice of law in this jurisdiction when: (1) the lawyer who is an employee of a client, acts on the client's behalf, or on behalf of the client's commonly owned affiliates, and the lawyer is eligible for and has complied with the lawyer registration rules under Admission to Practice R.3, or (2) the lawyer

2 renders services in this jurisdiction pursuant to other authority granted by federal law or a law or Court rule of this jurisdiction. (d) A lawyer who is not admitted to practice in this jurisdiction shall not represent or hold out to the public that the lawyer is admitted to practice law in this jurisdiction. A lawyer who practices law in this jurisdiction under paragraph (b) or (c) shall disclose in writing to the client that the lawyer is not licensed in this jurisdiction. (e) A lawyer shall not assist another person in the unauthorized practice of law. Who may practice as an attorney: N.D. Cent. Code (2015) Practicing law and serving on courts of record without certificate of admission and without payment of annual license fee prohibited--penalty Except as otherwise provided by state law or supreme court rule, a person may not practice law, act as an attorney or counselor at law in this state, or commence, conduct, or defend in any court of record of this state, any action or proceeding in which the person is not a party concerned, nor may a person be qualified to serve on a court of record unless that person has: 1. Secured from the Supreme Court a certificate of admission to the bar of this state; and 2. Secured an annual license therefor from the state board of law examiners. Any person who violates this section is guilty of a class A misdemeanor. N.D. Cent. Code (2015) Annual licenses to practice law and to serve on certain courts--requirement--issuance Fees A person who has an unrevoked certificate of admission to the bar of this state and who desires to engage in the practice of law, or who is to serve as a judge of a court of record, must secure an annual license from the state board of law examiners on or before January first of each year. The secretarytreasurer of the board shall issue the license upon compliance with the rules adopted or approved by the supreme court to assure the professional competence of attorneys, and upon payment of a fee established by the state bar association at its annual meeting, by a majority vote of its members in attendance at the meeting, not to exceed four hundred dollars. The license is valid for the calendar year for which it is issued. Issuance of an annual license to practice law may not be conditioned upon payment of any surcharge, assessment, or fee in excess of the maximum fee established by this section. This section does not prohibit imposition of a reasonable fee for filing and processing reports of compliance with continuing education requirements. N.D. Cent. Code (2015) Partner of public prosecutor not to aid defense - Penalty. Every attorney who, directly or indirectly, advises in relation to, or aids or promotes the defense of, any action or proceeding in any court, the prosecution of which is carried on, aided, or promoted by any state's attorney or other public prosecutor with whom such attorney is connected, directly or indirectly, as a partner, or who takes or receives, directly or indirectly, from or on behalf of any defendant therein, any valuable consideration, upon any understanding or agreement whatever, express or implied, having relation to the defense thereof, is guilty of a class A misdemeanor and in addition to the punishment prescribed therefor, that attorney forfeits that attorney's license to practice.

3 N.D. Cent. Code (2015) Attorney not to aid defense when formerly interested as public prosecutor - Penalty. Every attorney who, having prosecuted or in any manner aided or promoted any action or proceeding in any court, as state's attorney or other public prosecutor, afterward, directly or indirectly, advises in relation to or takes any part in the defense thereof as attorney or otherwise, or takes or receives any valuable consideration from or on behalf of any defendant therein, upon any understanding or agreement whatever, express or implied, having relation to the defense thereof, is guilty of a class A misdemeanor and in addition to the punishment prescribed therefor, that attorney forfeits that attorney's license to practice. Case Law: Cain v. Merchants Nat. Bank & Trust Co. of Fargo, 268 N.W. 719, 719, 722 (N.D. 1936) The practice of law is not limited to the preparation of cases and their conduct in court. It includes legal advice and counsel and the drawing of instruments, when such instruments set forth, limit, terminate, claim, or grant legal rights.... Practice of law under modern conditions consists in no small part of work performed outside of any court and having no immediate relation to proceedings in court. It embraces conveyancing, the giving of legal advice on a large variety of subjects, and the preparation and execution of legal instruments covering an extensive field of business and trust relations and other affairs. Although these transactions may have no direct connection with court proceedings, they are always subject to become involved in litigation. They require in many aspects a high degree of legal skill, a wide experience with men and affairs, and great capacity for adaptation to difficult and complex situations. These customary functions of an attorney or counsellor at law * * * bear an intimate relation to the administration of justice by the courts. No valid distinction, so far as concerns the questions set forth in the order, can be drawn between that part of the work of the lawyer which involves appearance in court and that part which involves advice and drafting of instruments in his office. The work of the office lawyer is the ground work for future possible contests in courts. It has profound effect on the whole scheme of the administration of justice. It is performed with that possibility in mind, and otherwise would hardly be needed. It is of importance to the welfare of the public that these manifold customary functions be performed by persons possessed of adequate learning and skill, of sound moral character, and acting at all times under the heavy trust obligation to clients which rests upon all attorneys. The underlying reasons which prevent corporations, associations and individuals other than members of the bar from appearing before the courts apply with equal force to the performance of these customary functions of attorneys and counsellors at law outside of courts. Decisions of the courts, some of which deal with statutes, are unanimous on these points, so far as we are aware. In re Opinion of the Justices (Mass.) 194 N.E. 313, 317. Application of Christianson, 215 N.W.2d 920, 921 (N.D. 1974). A disbarred or suspended attorney engages in the unauthorized practice of law when he performs services customarily performed by licensed attorneys which require legal expertise, even though such acts may lawfully be performed by laymen in some circumstances, unless his qualifications to perform such services derive from sources other than his law training and law experience. Ranta v. McCarney, 391 N.W.2d 161, 163 (N.D. 1986)

4 The Supreme Court held that an out-of-state attorney not licensed to practice law in state could not recover compensation for services rendered in state. Although our statutory law does not specifically prohibit compensation of out-of-state attorneys who practice law in the State in violation of , the statute is clearly intended to provide protection to our citizens from unlicensed and unauthorized practice of law. As we stated recently in Niska, North Dakota has a compelling interest in regulating the practice of law within its boundaries. 380 N.W.2d at 650. Section is aimed at preventing the harm caused by unqualified persons performing legal services for others. 380 N.W.2d at 649. Although Ranta may be competent (a factor which is irrelevant), he is not authorized to practice law in this State. The purpose of the statute is to determine before an individual practices in this State whether that person is competent and qualified to do so (original emphasis). Matter of Disc. Action Against Larson, 485 N.W.2d 345, 349 (N.D. 1992) The respondent admits that he prepared deeds, mortgages, releases, and income tax returns during the period of his suspension. Admittedly respondent performed such work prior to his suspension. Some were performed in relation to real estate transactions in which he was the real estate broker, but in others he was not. It seems clear to us that the doing of such work is within the province of a lawyer to do. It is properly identified as the practice of law, whether or not it might under some circumstances be properly performed by others not admitted to the bar. An order of suspension deprives the suspended lawyer from performing any service recognized as the practice of law and which is usually performed by lawyers in the active practice of law. It is the contention of respondent that these services were performed in his capacity as a licensed real estate broker, notary public, abstracter, and loan agent. It is not necessary for us to determine in this case if and under what circumstances others might perform such services, although not admitted to the bar. A suspended lawyer, who in connection with his law office engages in other activities, is in no different position than the active lawyer who confines himself solely to the practice of law in determining if the suspension order was violated. Where one is generally known in a community as a lawyer, it might well be impossible to divorce two occupations closely related if the rule were otherwise. A suspended lawyer will not be heard to say that services recognized as within the practice of law were performed in some other capacity when he is called to account. Wetzel v. Schlenvogt, 705 N.W.2d 836, (N.D. 2005) A corporation is an artificial person that must act through its agents. United Accounts v. Teladvantage, 499 N.W.2d 115, 117 n. 1 (N.D.1993). This Court has firmly adhered to the common law rule that a corporation may not be represented by a non-attorney agent in a legal proceeding. United Accounts, Inc. v. Teladvantage, Inc., 524 N.W.2d 605, (N.D.1994) (citing Oahu Plumbing & Sheet Metal, Ltd. v. Kona Constr., Inc., 60 Haw. 372, 590 P.2d 570, 572 (1979)). This rule is born out of the necessity to have a court system that functions efficiently. Oahu Plumbing, 590 P.2d at 573 (citing Strong Delivery Ministry Ass'n v. Bd. of Appeals, 543 F.2d 32, 33 (7th Cir.1976)). Attorneys are knowledgeable of the law, the court system, and its rules of procedure, which keep legal matters moving smoothly through the courts. Id. Just as one unlicensed natural person may not act as an attorney for another natural person in his or her cause, an unlicensed natural person cannot attorn for an artificial person, such as a corporation. Id. at We hold that when a case is commenced on behalf of a corporation by a non-attorney agent, the case and all documents signed by the non-attorney agent are void from the beginning. Cenex is a corporation. It is undisputed that Schneider is not an attorney. He signed and filed the restraining order petition on behalf of Cenex as its manager. Filing the petition began the action for a restraining order.

5 Cenex also never appeared at the hearing because it was not represented by a lawyer. The district court found that Schneider's appearance was as a witness. Because Cenex was never represented by an attorney, its petition was void from the beginning. Ethics Opinions:

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