Re-Regulating UPL in an Age of AI
Like many states, New York has a justice problem. Debt collectors bring “clearly meritless” lawsuits against defendants who do not actually owe the amounts claimed, who do not receive notice of the suits, and who default an estimated 70-90% of the time.1 Citizens of New York discover these meritless default judgments when their wages are garnered or their credit scores plummet, and some must file for personal bankruptcy as a result.2 Even when defendants have notice of such lawsuits, the amounts in controversy are often too small to justify hiring a lawyer, even if defendants could afford one.
New York nonprofit Upsolve has a potential solution to this justice problem. The group created software and a training program for volunteers to help these defendants fill out New York’s one-page answer form, asserting defenses such as improper service, lack of standing, or unconscionability.3 The software is good news for defendants in debt collection cases, who are often novices in judicial procedure and commonly lose in court without assistance.4 But there is one major problem: Upsolve’s assistance might be illegal under New York law.
Also like many states, New York prohibits the unauthorized practice of law (or “UPL). Under New York law, the state attorney general may bring a civil action against a person or company not licensed to practice law in the state for the “unlawful practice of law.”5
Ed Walters
Adjunct professor at the Georgetown University Law Center and at Cornell Law School. J.D. University of Chicago, The Law School, 1996; A.B. Georgetown University, 1992. The views expressed here are the author’s own and do not represent the views of his employer.