The Silver State beckons California lawyers.
Nevada 's population has boomed in recent decades, outpacing
every other state. The state has positioned itself as the
business-friendly " Delaware of the West." It ranks
second after Delaware in the number of corporate filings per
capita and lures businesses and individuals seeking to avoid
corporate and personal income tax.
Meanwhile, the Nevada Bar remains relatively small. The Boyd
School of Law at University of Nevada, Las Vegas is the only
ABA-accredited school in the state. There are approximately
7,200 active (nonjudicial) members of the Nevada Bar, compared
with California 's 158,000. The number of lawyers per capita
in California is about 50 percent higher than in Nevada.
Why haven't more lawyers joined the silver rush? To gain admission
to the Nevada Bar, applicants must pass a three-day exam that
includes essay questions and the Multistate Bar Examination.
Unfortunately, gaming law is not one of the exam topics. Nevada
does not admit by reciprocity, so veteran lawyers must pass
the same test as recent law graduates.
For out-of-state lawyers who shudder at the prospect of another
exam, opportunities exist for a limited practice in Nevada.
Although it once had unusually restrictive rules on multijurisdictional
practice, the landscape changed in 2002, when the Nevada Supreme
Court adopted a more tolerant approach. The rules clarified
and expanded law practice by out-of-state counsel while reaffirming
that Nevada lawyers should bear primary responsibility for
legal services performed within the state.
In general, out-of-staters
seeking to appear in litigated matters must apply for admission
pro hac vice, while those who represent clients in
nonlitigated matters might have to submit paperwork to the
Nevada Bar, depending on the nature and scope of their work.
Lawyers who comply with the various rules can find opportunity
in Nevada, while those who leap before they look may fall
into the unauthorized practice of law.
Lawyers licensed in other states may appear pro hac vice
in state courts or before state agencies in the discretion
of the adjudicatory body. Nevada Supreme Court Rule 42 specifies
the process.
Applicants must first apply to the Nevada State Bar. The application
requires the identification of a State Bar member who will
appear as an attorney of record. In 2006, 630 such applications
were processed.
While California does not place any quota on pro hac vice
admissions under Rule of Court 9.40, Nevada Supreme
Court Rule 42 creates a numerical guideline. Out-of-state
lawyers may not make more than five appearances in state proceedings
every three years. This rule applies firmwide and thus has
a greater potential impact on larger firms. A firm that applies
to admit five out-of-state lawyers in a major lawsuit in February
2008 will have to wait until February 2011 to admit additional
lawyers in other Nevada litigation, unless the firm can show
special circumstances.
Once the State Bar processes the out-of-state application,
Nevada counsel must file a motion to associate with the state
court or agency. The grant or denial of the motion is discretionary
and revocable.
If the motion is granted, out-of-state and local counsel must
work in tandem. The Nevada attorney of record must actively
participate in the representation and must be present at all
hearings unless otherwise ordered. Out-of-state counsel may
sign motions and other documents, but such papers either must
be hand served on opposing parties or mailed from within Nevada.
The Nevada Rules of Civil Procedure obligate counsel to meet
in person for an early case conference, which must occur in
the county where the action was filed, unless the parties
agree otherwise.
Out-of-state counsel
who are experienced with the Federal Rules of Civil Procedure
will be pleased to learn that the Nevada rules are very similar.
Guidance from Nevada counsel will reveal the key departures
from the federal rules, as well as the nuances of local practice.
For example, the seven-hour rule for depositions in federal
court does not exist under the Nevada rules.
With regard to federal court litigation, the Local Rules of
the U.S. District Court for the District of Nevada govern
admission of out-of-state counsel, both in the District Court
and in Bankruptcy Court.
Under Local Rule IA 10-2, out-of-state counsel must file a
"verified petition" for permission to practice in
a particular case on a form furnished by the clerk. A onetime
fee of $175 must be paid, which is a relative bargain compared
with the $500 per year fee required of lawyers who appear
pro hac vice in state court proceedings.
Pro hac vice admission in federal court, like in
state court, is limited to attorneys who do not reside in
Nevada and are not regularly employed or engaged in "substantial
business, professional, or other activities" in Nevada.
Although unclear, the limitation presumably does not exclude
lawyers who visit for recreation.
In the verified petition, counsel must identify any applications
for admission under Local Rule IA 10-2 made within the prior
three years. This includes applications submitted by the attorney
and by other members of his or her firm who are based in the
same office. The federal rule presumptively limits the number
of pro hac vice applications per attorney and firm
to five every three years in U.S. District Court. Out-of-state
lawyers and firms are allowed up to 10 admissions per year
in the Bankruptcy Court. Because Rule 10-2 requires firms
to report on an office-by-office basis, as opposed to a firmwide
basis, large firms have more latitude to practice in Nevada
federal courts than in state courts.
While the petition is pending in federal court, the attorney
shall take no action in the case beyond filing the first pleading
or motion. In civil matters, attorneys have 45 calendar days
after their first appearance to comply with the rule. In criminal
and bankruptcy cases, attorneys have only 10 court days to
comply.
Most important, the out-of-state attorney must associate with
a resident member of the District Court bar as co-counsel.
This does not simply involve listing a Nevada attorney on
the form - rather, local counsel must have the authority to
sign binding stipulations in the case. Unless ordered by the
court, however, the Nevada attorney does not need to attend
all proceedings.
Litigators are not the only out-of-state lawyers who must
register to lawfully practice in Nevada.
Lawyers who provide service to a Nevada client in connection
with transactional or other extrajudicial matters pending
in or substantially related to Nevada must register under
Nevada Rule of Professional Conduct 5.5A. A "Nevada client"
refers to a natural person residing in the state, a business
entity doing business in the state or a Nevada governmental
entity. Lawyers subject to this rule must file an annual report
with the Nevada State Bar by Jan. 31 following the year in
which the work was performed. The reports need not name the
clients, however, and they are not accessible to the public.
In addition, Nevada Supreme Court Rule 49.10 allows for limited
practice by lawyers not licensed in Nevada who work for a
single governmental entity or as in-house counsel for a business
entity situated or qualified to do business in Nevada. Such
lawyers may render legal advice and services to their employers,
and may negotiate with third parties, but cannot appear as
counsel of record in state court or agency proceedings. A
lawyer who seeks to practice under Rule 49.10 must apply to
the Nevada Bar and include a supporting affidavit from his
or her employer.
Some Nevada-related legal activities do not require membership
in the Nevada Bar or the filing of any report or application.
The safe harbors are detailed in Nevada Rule of Professional
Conduct 5.5(b). Among them are preparations for a Nevada court
proceeding in which the lawyer reasonably expects to be authorized
to appear, participation in investigation or discovery incident
to litigation that has been or will be instituted outside
Nevada and occasional work by in-house counsel. Out-of-state
lawyers may also give occasional advice in areas governed
primarily by federal law, international law or foreign law,
and may act as a neutral in alternative dispute resolution.
Jeffrey S. Galvin and Craig S. Denney
are attorneys with Downey Brand and are based in
Sacramento and Reno, respectively. They are admitted to practice
in Nevada and California .
|