Barry Blum, chief counsel for Miami-based Burger King, recently traveled to several cities in Louisiana, Alabama and Mississippi to conduct negotiations for his company's repurchase of 60 restaurants from a major franchisee. Blum is licensed to practice law only in Florida and Pennsylvania, but that didn't stop him from handling the deals in those other states. He says he felt sufficiently familiar with the legal issues involved to handle the acquisitions without the help of a local attorney. An official of the Alabama State Bar says that while his organization doesn't encourage this, clients aren't complaining.
Some attorneys disagree.
The American Bar Association and the Florida Bar recently have established commissions that may recommend limits on the ability of lawyers to handle transactions in states where they are not licensed to practice. The impetus was a recent California Supreme Court ruling holding that New York lawyers who handled an arbitration matter in California were practicing without a license. They were worried about what could happen to their own fees. Of course, attorneys around the country routinely handle matters across state lines. These activities, known as multijurisdictional practice, are increasing as the economy becomes more global and new communications technologies make it easier for lawyers to handle complex matters remotely.