Lonely no more: Lone Star State throws open its doors to foreign lawyers

Liberalisation: new regime tipped to draw international law firms to Texas

Texas is to become the latest US state to open to foreign lawyers by adopting a more liberal foreign legal consultant (FLC) regime on 1 December 2005, the Gazette's new sister publication Law Gazette International has revealed this month.


While Texas has had an FLC rule since 1992, it is more restrictive than many states and the American Bar Association's (ABA) model rule.


Each state sets its own professional conduct rules, and to date only 24 states and the District of Columbia have rules governing foreign lawyers working in the country. The ABA, which among other things is a purely voluntary body, produces model rules that it encourages state authorities to use.


According to Larry Pascal, chairman of the State Bar of Texas's international law section and a partner at Dallas firm Haynes & Boone, the current Texas arrangement 'does not reflect professional practices or needs, and perhaps more importantly has failed to attract foreign law firms and their work to the Lone Star State', despite it having a large and sophisticated legal market.


As a consequence, there has been a growing recognition in Texas, the second largest state in the country, that it must modernise its FLC rule and other international practice rules.


There is also the wider fear that the ability of the US to negotiate liberalisation of legal services in other countries may be compromised by its own regulation of foreign lawyers and law firms.


Under the new rule, foreign lawyers with a minimum age of 26 who are members of their home bar and have practised for at least three of the five years preceding their application will be able to practise as FLCs and establish an office in Texas for that purpose.


The new rule will also increase the scope of legal practice for FLCs, making Texas a more attractive marketplace not only for individual FLCs, but also for international law firms looking to open an office in the state.


FLCs will be able to practise under home title, provide advice on third country law, and in partnership, affiliation or as part of the same firm, offer advice on Texas and US law - except in a number of reserved areas of practice, such as appearances in local courts, family law, and real estate conveyances.


Mr Pascal said: 'Given its new liberalisation of FLC rules, its lure as the biggest energy centre in the world, extended border and economic and cultural contacts with Mexico, and gateway position to Latin America, Texas may soon find itself an increasingly interesting destination for international law firms wishing to work both in the US and gain access to Latin American markets.'



Alison Hook, head of international law at the Law Society, said: 'The Texas bar has set a model example for other US states to follow. It realised that limiting the scope of foreign legal practice was not helping local lawyers or the economy of Texas. We hope that others take note.'