It's more of an issue with transactional work. I practice commercial real estate law out of DC, but I do deals all over the country (and the world). I'm only admitted in two states plus DC, but I don't violate any ethical rules or laws by working on a transaction in one of the 48 other states where I am not barred.
“I’m only admitted in two states plus DC, but I don’t violate any ethical rules or laws by working on a transaction in one of the 48 other states where I am not barred.”
Well, see, that’s the problem, actually you are. In my state you at a minimum would have to affiliate with local counsel to review the documents for legal compliance with my state’s laws. But that’s not happening. The firms play the game of doing all the work out of state and then escrowing the transaction out of the state to claim they are not practicing law here. They actually have couriers of a local title company fly to the closing in Chicago, or wherever, and then fly back here just to record.
Unfortunately, the ABA (which is no friend of the legal practice) has made it worse with their “model rules” on multi-jurisdictional practice, which are treated as if they have blessed what’s going on even though states, including mine, have not approved them. But what it has done is give the large national firms the cover to drive the local firms out of business. And the absurdity is the national firms charge 3 to 4 times more than the local firm would charge to put out the same or better product.
Unfortunately, there is no way that my state is going to bring a lawsuit against a Pillsbury, or Latham & Watkins, or Schain Burney, or any of the other national law firms for illegally practicing law in my state.
As far as I know, California is the only state that has actually prosecuted out-of-state attorneys for engaging in the unauthorized practice of law. For example, an attorney here made the mistake of sending an eviction notice for her local client to tenants of property he owned in California. The California prosecutors went after her, and on the basis of that our Supreme Court then disbarred her. And for something our local state bar would not even pay the slightest attention to if it were done in reverse.