Today there was an interesting day for consumers of legal services in Russia.
A "congress" of the Federal Chamber of Advocates (the elite of attorney bureaucracy) was concluded today, adopting various changes as to regulation of attorneys.
The Congress did not introduce attorney monopoly - yet.
But Russian legal elite is vigorously pushing for it, claiming that attorney monopoly "justified itself" in "civilized countries" like Europe and America, and thus, should be introduced in Russia.
So - how justified attorney monopoly is in the U.S., as compared to the market of legal services in Russia?
I put together a comparative table as to how the market of legal services is regulated in Russia and in the United States.
Features
of attorney regulation
|
Russia
|
U.S.A.
|
Lay
representation in court allowed? Yes/No
|
Yes
|
No
|
Is
there a general licensing requirement as a condition to provide legal
services?
|
No
|
Yes
|
Is
the country a federation?
|
Yes
|
Yes
|
What
is the area of the country?
|
6.602 million square miles
|
3.797 million square miles (nearly twice less)
|
Must
a licensed attorney draft deeds?
|
No, a notary does that
|
Yes
|
Must
a licensed attorney draft any contracts?
|
No, an in-house unlicensed lawyer does that
|
Yes – there is, only of late, some leniency to in-house attorneys,
but still some sort of certification and checking is required, it is not in
Russia
|
Must
a licensed attorney provide any consultations?
|
No, usually an unlicensed lawyer-consultant does it
|
Yes
|
Must
a licensed attorney provide court representation?
|
No, your next door neighbor can represent you in court based on a
power of attorney
|
Yes
|
Does
the government regulated attorneys?
|
No
|
Yes
|
What
branch of the government regulates attorneys?
|
N/A
|
Judiciary
|
Is
the branch of the government regulating attorneys the same as the branch of
the government regulating other regulated professions?
|
N/A
|
No, all other professions are regulated by the
executive branch
|
Do
the regulators themselves have to have a law license in order to do their
jobs?
|
N/A
|
Yes, judges regulating attorney licensing are themselves licensed
attorneys, as a condition of becoming a judge
|
Are
their criminal laws against unauthorized practice of law?
|
No
|
Yes
|
Are
criminal laws for unauthorized practice of law specific for each subject of
the federation?
|
N/A
|
Yes
|
Do
criminal sentences for unauthorized practice of law involve incarceration?
Yes/No
|
N/A
|
Yes, from 1 year for misdemeanors to 5 years where
UPL is a felony
|
Is
a law graduate, after passing a graduation exam and receiving his law degree,
provide legal services?
|
Yes
|
No
|
Can
a law graduate, based on his diploma alone, provide legal services in the
entire country?
|
Yes
|
No
|
Is
an attorney allowed by law, once licensed in one state, provide legal
services in the entire country? Yes/No?
|
N/A
|
No
|
Can
an attorney licensed in one state, but not licensed in another, be charged
with UPL? Yes/No
|
N/A
|
Yes
|
Do
regulators regulate personal behavior of licensed attorneys? Yes/No
|
N/A
|
Yes, attorneys in New York and California are prohibited to have an
intimate relationship with their clients
|
Do
regulators regulate political behavior of licensed attorneys? Yes/No
|
N/A
|
Yes, attorneys are suspended/disbarred for
out-of-court criticism of each other, the government and especially the
judiciary, attorneys’ own regulators
|
It is very obvious that in the U.S., as compared to Russia, both consumers and lawyers have a worse business climate.
While both countries are federations in their political structure, in Russia, a law graduate, once receiving his/her law degree, can work without any licenses as a notary, as a law consultant for the public, as an in-house transactional counsel, or as a trial lawyer.
Moreover, even a never-licensed individual may represent people, simply on the basis of a power of attorney.
In Russia, as opposed to the U.S., no licensing authority (as yet) controls, as a condition of being allowed to earn a living by practicing his trade, personal and political freedom of a lawyer as to who to be with romantically, and whether and how to criticize the government.
As for consumers, in Russia a consumer is free to hire:
- a next door neighbor, an unlicensed attorney, an attorney - member of the "Chamber of Advocates" - to represent him in court;
- a notary - to draft a deed or a will.
Such diversity of choice and of a variety of educational levels of providers necessarily tells on prices.
The more credentials - the higher the price, but the customer in Russia (as yet) is allowed to choose a highly credentialed (Chamber of Advocates) and, thus, highly priced lawyer, or a less credentialed provider with a lower fee.
Moreover, in Russia, a federation, same as the U.S., with a territory nearly twice that of the U.S., a law school graduate, once he/she got her law degree, can practice from Moscow to Vladivostok without any restrictions.
Not so in the U.S.
In the U.S. a New York attorney can be criminally prosecuted for practicing, let's say, in Florida without a Florida law license.
Some states have "reciprocity agreements" with other states, allowing attorneys licensed in certain enumerated states to practice in their state without passing an additional state bar examination.
Yet, coastal states like Florida and South Carolina, where attorneys usually retire, do not allow admission on reciprocity, obviously protecting not the consumers, because retired attorneys are obviously skillful, but the local lawyers from incoming competition.
It is very obvious that it is a very expensive feat to hire a licensed attorney for every sneeze, for doing a will, for drafting a deed or a contract, for representing you in every matter, small or large, in court.
For that reason, Russians can hire non-attorneys or non-advocates (not members of the Chamber of Advocates, but still law graduates, even though not credentialed) - at a range of lower prices.
In the same situation, Americans simply go without a lawyer, which results in massive loss of rights, the so-called "justice gap".
Now the American Bar Association, through its Rule of Law pet project, apparently bribed enough people in the Russian lawyer bureaucracy, or showed enough people in that bureaucracy the beauty of instilling attorney monopoly to implode the existing system of provision of legal services in Russia from within.
We will see very shortly whether the elite of Russian "Federal Chamber of Advocates" (and American law firms that came into the Russian market and want to be as comfortable their, without competition, as they are in the U.S.) will get their way.
To protect the consumers, no less.
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