Federal Court Upholds New York's Limits on Unauthorized Practice of Law

A recent federal court decision in New York has reinforced longstanding restrictions on the unauthorized practice of law, highlighting the balance between access to justice and protecting the public from unqualified legal advice. The case, Upsolve Inc. v. James, centered on a nonprofit organization's effort to use non-lawyers to provide free legal guidance in debt-collection lawsuits. The program trained non-lawyers, called Justice Advocates, to help low-income individuals complete a standard one-page answer form in response to debt-collection suits, where default judgments occur in up to 90% of cases.

The litigation began in January 2022 when Upsolve filed suit against New York Attorney General Letitia James in the U.S. District Court for the Southern District of New York. Upsolve, along with the Rev. John Udo-Okon, challenged New York's unauthorized practice of law rules, arguing they violated First Amendment rights by limiting their American Justice Movement program. In May 2022, U.S. District Judge Paul Crotty granted a preliminary injunction, finding the rules likely unconstitutional as content-based restrictions on speech, subject to strict scrutiny.

The judge noted the program's safeguards, including training, ethical guidelines and referrals for complex matters, and concluded the rules were overbroad.

The state appealed, and in September 2025, the 2nd U.S. Circuit Court of Appeals vacated the injunction. The appeals court ruled the unauthorized practice rules were content-neutral and should be reviewed under intermediate scrutiny, a less stringent standard. The case was sent back to the district court for further review. On March 5, 2026, U.S. District Judge Lewis Kaplan dismissed the complaint, upholding the rules. Kaplan found the restrictions advanced important government interests without unduly burdening speech.

This outcome underscores key public policy reasons for maintaining limits on unauthorized legal practice. New York's rules, enforced through civil, criminal and contempt proceedings, require legal practitioners to meet rigorous standards: a law degree, passage of the bar exam and demonstration of good character. These measures protect consumers from incompetent, inexperienced or unethical advice, particularly in individualized cases like debt disputes, where poor guidance can lead to severe financial harm. The rules also safeguard the integrity of the justice system by ensuring ethical behavior and independence among those providing legal services. Court have long recognized that unregulated advice poses risks, especially in organized programs where non-lawyers might face conflicts or lack accountability.

While programs like Upsolve's aim to improve access to justice, the decision emphasizes that such goals must not compromise public protection.

For those needing legal help, options abound beyond unauthorized sources. Individuals should contact the New York State Bar Association's lawyer referral service, a local indigent legal services provider or a competent local attorney of their own choosing.

Second Amendment Legal Update, January 2023

A monthly update, prepared for the Schuyler County Chapter of S.C.O.P.E. NY, a statewide 501(c)4 organization dedicated to preserving the 2nd Amendment rights for the residents of New York State. For a complete copy of this month's report, click here.

Schuyler County joins class action lawsuit against U.S. Department of Interior

Watkins Glen, NY—Schuyler County has successfully opted into a class action lawsuit against the federal government to recover payments in lieu of property taxes on federal lands within the county.

According to Schuyler County Attorney Steven Getman, the county was notified Friday (August 31) that its claim had been accepted in the Kane County, Utah v. United States class action lawsuit to recover federal Payment in Lieu of Taxes (PILT) underpayments for fiscal years 2015 through 2017.

The County Legislature voted August 13 to authorize Getman to file papers joining the lawsuit.

The United States Court of Claims has held that underpayments by the Department of Interior on federal PILT programs in Kane County and other local governments may have occurred during 2015 to 2017, Getman explained.   The PILT Act is intended to compensate local governments for tax revenues lost from federal lands in their jurisdictions, and the costs of providing services to those lands, Getman said.

That could include the part of the Finger Lakes National Forest in the Town of Hector, Getman said.

“If court determines the county was underpaid under PILT agreements for lands in the National Forest, the county can recover additional money” Getman said.   “There is no cost to participate in the lawsuit and no disadvantage to the county to do so.”

According to County Administrator Tim O’Hearn, “any money collected would go to the county as direct revenue to offset the cost of services to the forest and lost tax revenue, in order to reduce the local tax burden.”

“Given the fiscal stresses placed on local governments by state and federal mandates, county officials have a duty to make sure that any funds due Schuyler County taxpayers come back to Schuyler County to pay for necessary services,” Getman noted.

County Treasurer Harriett Vickio has reported that the County received payments for the affected years as follows:  2015, $16,526.00; 2016, $17,244.00; 2017, $17,091.00.   

Any additional amounts for those years obtained from the lawsuit would be calculated by the court, Getman said.

Schuyler County may join lawsuit against Federal Government

The U.S. Department of Interior may have underpaid Schuyler County for payments in lieu of property taxes on federal lands within the county.

In response, the County Legislature’s Legislative Resolution Review Committee moved Wednesday (August 8) to authorize Schuyler County Attorney Steven Getman to file papers joining a federal class action lawsuit initiated by Kane County, Utah.

According to Getman, the United States Court of Claims has held that underpayments on federal Payment in Lieu of Taxes (PILT) programs in Kane County and other local governments may have occurred during 2015 to 2017. The PILT Act is intended to compensate local governments for tax revenues lost from federal lands in their jurisdictions, and the costs of providing services to those lands, Getman said.

That could include the part of the Finger Lakes National Forest in the Town of Hector, Getman said.

“If court determines the county was underpaid under PILT agreements for lands in the National Forest, the county can recover additional money” Getman said. “There is no cost to participate in the lawsuit and no disadvantage to the county to do so.”

According to County Administrator Tim O’Hearn, “any money collected would go to the county as direct revenue to offset the cost of services to the forest and lost tax revenue, in order to reduce the local tax burden.”

“Given the fiscal stresses placed on local governments by state and federal mandates, county officials have a duty to make sure that any funds due Schuyler County taxpayers come back to Schuyler County to pay for necessary services,” Getman noted.

County Treasurer Harriett Vickio has reported that the County received payments for the affected years as follows: 2015, $16,526.00; 2016, $17,244.00; 2017, $17,091.00.

Any additional amounts for those years obtained from the lawsuit would be calculated by the court, Getman said.

The measure now goes to the full legislature for a final vote August 13 at 6:30 pm.

Public asked to report phone scams involving Federal Court

Federal officials are alerting the public to several nationwide imposter scams involving individuals claiming to be U.S. marshals, court officers, or other law enforcement officials.

In the scam, criminals call their victims claiming the are trying to collect a fine in lieu of arrest for failing to report for jury duty or other offenses. The scammers tell victims they can avoid arrest by purchasing a prepaid debit card and read the card number over the phone to satisfy the fine.

These scammers use various tactics to sound credible, including badge numbers, names of actual law enforcement officials and federal judges, and courthouse addresses. Some will spoof their phone numbers on caller ID as appear if they are calling from a court or government agency.

Anyone who believes they were a victim of such a scam, is encouraged to report the incident to their local FBI office and to the FTC.