Summary
The Supreme Court of Ohio accepted a consent decree concerning the unauthorized practice of law by Stuart Jansen and American Mediation & Alternative Resolutions. The decree permanently enjoined the respondents from disputing or negotiating creditors’ claims on behalf of Ohio clients and prohibited them from otherwise representing debtors or engaging in the unauthorized practice of law.
Topics
Practice areas
Questions Presented
- Whether the Supreme Court of Ohio should approve the consent decree resolving the alleged unauthorized practice of law.
- Whether respondents' communications disputing or questioning the validity or amount of creditors' claims and negotiating debt resolutions constituted the unauthorized practice of law.
Holdings
- The court accepted the Board on the Unauthorized Practice of Law's recommendation and approved the parties' proposed consent decree.
- Respondents were enjoined from sending communications on behalf of Ohio clients to creditors that dispute or otherwise call into question the validity or amount of a creditor's claim, except regarding an incorrectly computed amount. Respondents also were prohibited from representing Ohio debtors by advising, counseling, or negotiating resolution of their debts with creditors or creditors' counsel and from otherwise engaging in the unauthorized practice of law.
Key quotations
“We accept the board’s recommendation and approve the proposed consent decree submitted by the parties, as follows:” (¶ 1)
“The Respondents permanently shall cease and desist from sending on behalf of any client of the Respondents located in the State of Ohio any correspondence, email message, memorandum or any other written or oral communication to any creditor of such client which communication disputes or otherwise calls into question the validity or amount of the creditor’s claim against such client” (¶ 15)
Factual background
Jansen and AMAR offered mediation and nonbinding arbitration services and acted for debtors in communications with creditors. In one matter, Baer executed a limited power of attorney appointing AMAR as attorney-in-fact, and Jansen sent a creditor's attorney a letter offering to settle a $2,411.82 debt for $1,300 while raising defenses and mitigation. Jansen sent at least seven similar letters for other clients. The relator alleged, and respondents agreed, that these communications constituted the unauthorized practice of law.
Procedural history
The Cincinnati Bar Association investigated alleged unauthorized practice of law by Stuart Jansen and American Mediation & Alternative Resolutions and filed a complaint with the Board on the Unauthorized Practice of Law. The parties waived notice of and a hearing before the board and submitted an agreed consent decree. The board recommended approval, and the Supreme Court of Ohio accepted the recommendation, approved the decree, and issued the stated cease-and-desist injunction.