The State of Connecticut recently revised its judicial rules to require that any attorney not admitted in Connecticut be admitted pro hac vice prior to appearing on behalf of a client before any state or municipal government agency. As with any pro hac vice admission, out-of-state attorneys will be required to fill out the requisite application and retain local counsel as a condition of any appearance.
Since 1984, Connecticut Insurance Department regulations have only required an authorized representative of a party to an Insurance Department proceeding to file a Notice of Appearance. This change will increase the overall costs to the client due to the costs associated with complying with the pro hac vice application process and of hiring local counsel.
Rule 5.5 of the Rules of Professional Conduct of the State of Connecticut appears to support the rule change. The rule states in relevant part:
A lawyer admitted in another United States jurisdiction which accords similar privileges to Connecticut lawyers in its jurisdiction … may provide legal services on a temporary basis in this jurisdiction, that (1) are undertaken in association with a lawyer who is admitted to practice in this jurisdiction and who actively participates in the matter; (2) are in or reasonably related to a pending or potential proceeding before a tribunal in this or another jurisdiction, if the lawyer, or the person the lawyer is assisting, is authorized by law or order to appear in such proceeding or reasonably expects to be so authorized; (3) are in or reasonably related to a pending proceeding … in this or another jurisdiction … in which the lawyer is admitted to practice and are not services for which the forum requires pro hac vice admission; or (4) are not within subsections (c) (2) or (c) (3) and arise out of or are substantially related to the legal services provided to an existing client of the lawyer’s practice in a jurisdiction in which the lawyer is admitted to practice.
Section 2-44A (Definition of the Practice of Law) of the Connecticut Superior Court Rules defines “the practice of law” stating, in relevant part, as follows: “(4) Representing any person in a court or in a formal administrative adjudicative proceeding … in which … a record is established as the basis for judicial review.”
One question is how the state will define “proceeding,” as the rule does not formally define the term. As such, the Commissioner may have discretion in how this rule is applied. For example, the Commissioner could define “proceeding” broadly to include all actions and petitions, whether contested or uncontested; formal hearings or informal meetings with the Commissioner; a written reply to a critical report on examination or a market conduct report that does not result in a formal hearing. This may also include representation of a purchaser of a domestic insurer in filing a Form A Change of Control petition or appearance at an Insurance Department change of control hearing, and so forth.
The Connecticut Insurance Department has confirmed that it is required to amend Section 38a-8-33 by January 1, 2017 to conform to the revision in Section 2-16. However, Burton Cohen, the Chairman of the Unauthorized Practice of Law Committee of the Connecticut Bar Association, believes that any out of-state attorney who participates in an administrative proceeding now without first being admitted by the court could be viewed as engaging in the unauthorized practice of law.
For the full article, refer to page 13 in the Fall 2016 issue. https://www.airroc.org/assets/docs/matters/airroc%20fall%202016%20vol%2012%20no%203.pdf