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Ranta v. McCarney, 391 N.W.2d 161

Facts

Esko E. Ranta, an attorney licensed in Minnesota, provided legal advice to Robert P. McCarney in North Dakota primarily concerning taxation since 1966. Ranta had never been licensed to practice law in North Dakota but had built a client base there, including McCarney, who hired him in 1977 for the sale of his business. After Ranta billed McCarney $22,500 for his services, McCarney contested the fees, arguing that Ranta's lack of licensure in North Dakota precluded him from recovering any compensation.

Ranta is an attorney licensed to practice in Minnesota. Since 1966 he has travelled to North Dakota to provide various legal advice to McCarney, primarily in the area of taxation. He never has been licensed to practice law in the State of North Dakota. Details of the fees to be charged were traditionally left open, with Ranta billing McCarney the amount Ranta believed was fair and reasonable for the services rendered.

Issue

Whether an out-of-state attorney not licensed to practice law in North Dakota can recover compensation for legal services rendered in the state.

Whether an out-of-state attorney not licensed to practice law in North Dakota can recover compensation for legal services rendered in the state.

Rule

An out-of-state attorney who is not licensed to practice law in North Dakota cannot recover compensation for services rendered in the state, as per Section 27–11–01, N.D.C.C., which prohibits unauthorized practice of law.

An out-of-state attorney who is not licensed to practice law in this State cannot recover compensation for services rendered in the State of North Dakota.

Analysis

The court applied the rule by determining that Ranta's actions constituted the practice of law in North Dakota, despite his claims of competence. The court emphasized that the statute aims to protect citizens from unlicensed legal services and that Ranta's long-term unauthorized practice, including opening a branch office in Bismarck, violated the law. The court also noted that equitable principles could not be applied due to Ranta's unclean hands.

The court applied the rule by determining that Ranta's actions constituted the practice of law in North Dakota, despite his claims of competence. The court emphasized that the statute aims to protect citizens from unlicensed legal services and that Ranta's long-term unauthorized practice, including opening a branch office in Bismarck, violated the law.

Conclusion

The North Dakota Supreme Court reversed the lower court's judgment and remanded the case to determine if any fees were related to legal practice conducted outside of North Dakota.

The judgment is reversed and remanded.

Who won?

The prevailing party was Robert P. McCarney, as the court ruled in his favor by reversing the judgment against him and establishing that Ranta could not recover fees for services rendered in North Dakota.

The prevailing party was Robert P. McCarney, as the court ruled in his favor by reversing the judgment against him and establishing that Ranta could not recover fees for services rendered in North Dakota.

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