Unauthorized Practice of Law Amendments

36
78A-9-103
78B-2-305
0
Unauthorized Practice of Law Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Anthony E. Loubet
Senate Sponsor: Brady Brammer
LONG TITLE
General Description:
This bill addresses the unauthorized practice of law.
Highlighted Provisions:
This bill:
defines terms related to the unauthorized practice of law;
allows the court to take certain actions when a person is engaging in the unauthorized
practice of law before the court;
allows a civil action to be brought for the unauthorized practice law;
establishes a criminal penalty for the unauthorized practice of law;
clarifies that the statutory provisions regarding the unauthorized practice of law do not
limit the Supreme Court's authority to regulate the practice of law;
provides a three-year statute of limitations for a civil action for the unauthorized practice
of law and the exceptions to the statute of limitations;
reorganizes the three-year statute of limitations for certain actions; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
78A-9-103
, as last amended by Laws of Utah 2013, First Special Session, Chapters 2, 2
REPEALS AND REENACTS:
78B-2-305
, as last amended by Laws of Utah 2023, Chapter 185
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
78A-9-103
is amended to read:
78A-9-103
. Unauthorized practice of law -- Action by court -- Civil action --
Criminal penalty.
(1)
As used in this section:
(a)
"Board" means the Board of Commissioners for the Utah State Bar.
(b)
"Client" means a person that is provided, or has been provided, a service constituting
the practice of law.
(c)
"Practice of law" means the same as that term is defined in Utah Code of Judicial
Administration, Rule 14-802.
(d)
"Unauthorized practice of law" means conduct that is a violation of Subsection
(2)
.
(1)
(2)
Unless otherwise provided by law or court rule,
an individual
a person
may not
practice law or assume to act or hold
himself or herself
oneself
out to the public as
an
individual
a person
qualified to practice law within this state if
that individual
the
person
:
(a)
is not admitted and licensed to practice law within this state;
(b)
has been disbarred or suspended from the practice of law; or
(c)
is prohibited from practicing law by court order entered pursuant to the courts'
inherent powers or published court rule.
(2)
The prohibition against the practice of law described in Subsection
(1)
shall be
enforced by any civil action or proceeding instituted by the Board of Commissioners of
the Utah State Bar.
(3)
(a)
If a court determines, by a preponderance of the evidence, that a person engaged
in the unauthorized practice of law in a proceeding before the court:
(i)
the court shall award attorney fees and costs incurred by any party as a result of
the person's unauthorized practice of law; and
(ii)
the court may:
(A)
strike any filing by the person;
(B)
subject to Subsection
(7)
, issue an injunction enjoining the person from
engaging in the unauthorized practice of law before the court; or
(C)
refer the matter to the board for civil action or to a prosecuting attorney for
criminal action.
(b)
A court may make a determination described in Subsection
(3)(a)
upon a motion by a
party or the court's own motion.
(4)
(a)
The board may bring a civil action against a person for engaging in the
unauthorized practice of law.
(b)
If the board prevails on the civil action described in Subsection
(4)(a)
, the court may:
(i)
subject to Subsection
(7)
, issue an injunction enjoining the person from engaging
in the unauthorized practice of law;
(ii)
order the person to return any payment that the person received from a client for
any service that constituted the unauthorized practice of law;
(iii)
order the person to pay up to $10,000 to a fund that reimburses clients for losses
caused by dishonest persons admitted to the practice of law;
(iv)
award reasonable attorney fees and costs to the board; or
(v)
order any other relief necessary to prevent the person from engaging in the
unauthorized practice of law.
(5)
(a)
A client has a right of action against a person if the client sustains damages or
other harm as a result of the person engaging in the unauthorized practice of law.
(b)
If a client bringing a right of action described in Subsection
(5)(a)
prevails in that
action:
(i)
the court shall award reasonable attorney fees and costs to the client; and
(ii)
the court may award the following remedies to the client:
(A)
general damages;
(B)
special damages; or
(C)
equitable relief, including an injunction described in Subsection
(7)
.
(6)
An action described in Subsection
(4)
or
(5)
may only be brought within the time period
described in Section
78B-2-305
.
(7)
(a)
The court may only issue an injunction described in Subsection
(3)
,
(4)
, or
(5
)
upon a showing, by a preponderance of the evidence, that a person engaged in, or is
engaging in, the unauthorized practice of law.
(b)
An injunction described in Subsection
(7)(a)
shall include terms that the court
considers equitable and reasonable.
(c)
Proof of monetary damages is not necessary for a court to issue an injunction under
this Subsection
(7)
.
(8)
(a)
Except as provided in Subsection
(8)(b)
, a person who engages in the
unauthorized practice of law is guilty of a class A misdemeanor.
(b)
A person who engages in the unauthorized practice of law is guilty of a third degree
felony if:
(i)
the person falsely represents to a client that the person is licensed or otherwise
authorized to engage in the practice of law in this state;
(ii)
the person's unauthorized practice of law causes a client to suffer:
(A)
monetary loss or damages exceeding $1,000; or
(B)
a significant impairment of a legal right; or
(iii)
the person has been previously convicted of the unauthorized practice of law.
(c)
The attorney general, or a county or district attorney, may investigate and prosecute
the unauthorized practice of law.
(3)
(9)
Nothing in this section prohibits an individual from personally and fully
representing that individual's own interests in a cause to which that individual is a party
in the individual's own right and not as an assignee.
(10)
Nothing in this section limits the authority of the Supreme Court to regulate the
practice of law.
Section 2. Section
78B-2-305
is repealed and reenacted to read:
78B-2-305
. Actions with a statute of limitations of three years -- Exceptions.
(1)
(a)
Except as otherwise provided in this Subsection
(1)
, an action may only be
brought within three years:
(i)
for waste, trespass upon, or injury to real property;
(ii)
for taking, detaining, or injuring personal property, including actions for specific
recovery;
(iii)
for relief on the ground of fraud or mistake;
(iv)
for liability created by statutes of this state other than for a penalty or forfeiture
under the laws of this state; or
(v)
to enforce liability imposed by Section
78B-3-603
or for damages under Section
78B-6-1701
.
(b)
An action under Subsection
(1)(a)(i)
does not accrue until the discovery by the
aggrieved party of the facts constituting the waste or trespass if the waste or trespass
is committed by means of underground works upon any mining claim.
(c)
(i)
An action described in Subsection
(1)(a)(ii)
does not accrue until the owner has
actual knowledge of facts that would put a reasonable person upon inquiry as to
the possession of the animal by the defendant if:
(A)
the subject of the action is a domestic animal usually included in the term
"livestock" which at the time of the animal's loss has a recorded mark or brand;
and
(B)
the animal strayed or was stolen from the true owner without the owner's fault.
(ii)
An action described in Subsection
(1)(a)(ii)
may be brought within four years in
accordance with Subsection
78B-2-307(3)
for a claim involving damage to
personal property from an accident involving a motor vehicle, as defined in
Section
41-6a-102
, including an accident involving a motor vehicle and bicycle.
(d)
An action described in Subsection
(1)(a)(iii)
does not accrue until the discovery by
the aggrieved party of the facts constituting the fraud or mistake.
(e)
For an action described in Subsection
(1)(a)(iv)
, the three-year limitation period does
not apply if there is a different limitation period provided by the Utah Code.
(f)
An action described in Subsection
(1)(a)(v)
does not accrue until the aggrieved party
knows or reasonably should know of the harm suffered.
(2)
(a)
As used in this Subsection
(2)
:
(i)
"Client" means the same as that term is defined in Section
78A-9-103
.
(ii)
"Unauthorized practice of law" means the same as that term is defined in Section
78A-9-103
.
(b)
(i)
The Board of Commissioners for the Utah State Bar may only bring an action
for the unauthorized practice of law described in Subsection
78B-9-103(4)
within
three years after the day on which the person engaged in the unauthorized practice
of law.
(ii)
If a person engages in continuous conduct that constitutes the unauthorized
practice of law, the day on which the limitation period described in Subsection
(2)(b)(i)
begins when the person ceases to engage in the unauthorized practice of
law.
(c)
A client may only bring an action for the unauthorized practice of law described in
Subsection
78B-9-103(5)
within three years after the day on which the client
discovers, or through the use of reasonable diligence should have discovered, that the
person engaged in the unauthorized practice of law.
Section 3.
Effective Date.
This bill takes effect:
(1)
except as provided in Subsection (2),
May 6, 2026
; or
(2)
if approved by two-thirds of all members elected to each house:
(a)
upon approval by the governor;
(b)
without the governor's signature, the day following the constitutional time limit of
Utah Constitution, Article VII, Section 8; or
(c)
in the case of a veto, the date of veto override.
3-12-26 11:11 AM