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GAZETTE

AUGUST/SEPTEMBER

1994

to the legitimate aim of protection of

the consumer.

We will now examine the legislation

and draft legislation to determine the

current state of lawyers' rights to

establish and provide services.

The Provision of Services

Council Directive (EEC) No 77/249 of

22 March 1977 to facilitate the

effective exercise by lawyers of

freedom to provide sefvices was

adopted in direct response to the

Reyners

case. This short and simple

Directive covers the situation where a

lawyer established in one Member

State, the home state, provides

services in another Member State, the

"host" Member State.

Some controversies, however, remain.

Article 5 of the Directive provides

that Member States may require the

visiting lawyer to be introduced to the

Court and Bar where the services are

to be provided and to work in

conjunction with a lawyer practising

within that Court's jurisdiction. All

Member States have exercised the

"working in conjunction"

requirement. The provision was

litigated in

Commission -v- Germany,

Case 427/85 [1988] ECR 1123 where

the Commission challenged the

legality of the German implementing

legislation as being too restrictive on

the visiting lawyer and too generous

! to the local lawyer,

i

The Court held that:

"(. . .) whilst the Directive allows

national legislation to require a

lawyer providing services to work in

conjunction with a local lawyer, it is

intended to make it possible for the

former to carry out the tasks

entrusted to him by his client, whilst

at the same time having due regard

j

for the proper administration of

justice. Seen from that point of

view, the obligation imposed upon

him to act in conjunction with a

local lawyer is intended to provide

him with the support necessary to

enable him to act within a judicial

system different from that to which

i he is accustomed and to assure the

judicial authority concerned that the

lawyer providing services actually

has that support and is thus in a

position fully to comply with the

procedural and ethical rules that

apply (. . .)."

The Court found that the requirements

that:

• the visiting lawyer should work

with a local lawyer even where

there was no local requirement for

legal representation;

• the local lawyer has to be appointed

representative of the visiting

lawyer's client;

• the visiting lawyer could not present

oral argument unless the local

lawyer was present;

• the local lawyer had to accompany

the visitor on prison visits; and

• the visiting lawyer needed a local

lawyer for each different Court

District

were all incompatible with Article 5.

In

Commission -v- France,

Case

294/89 [1991] 1 ECR 3591, the Court

again examined national

implementing legislation under

Article 5 and struck down the

requirements:

• that the visiting lawyer must not be

a French national;

• that the visiting lawyer must act in

conjunction with a local lawyer

even where the authority or agency

in question did not exercise judicial

functions; and

• that the visitor must always act with

a local lawyer of the Bar of the

particular Court District.

This last finding of the Court puts the

visiting lawyer in a much better

position than the local lawyer in that

he can move freely within France,

Germany, Italy, Spain and other

jurisdictions which restrict lawyers to

| practice in a particular region. This

form of reverse discrimination is well

known in the law on the free

movement of goods.

Visiting lawyers must use the title of

' the home Member State, so once a

solicitor always a solicitor. However,

the visitor must observe the rules of

professional conduct of the host state

without prejudice to his obligations in

the home state.

What then of home rules which allow

the visitor to advertise and host rules

which prohibit it. If the Court of

Justice were asked to review this

conflict, it is likely to examine

whether or not the host prohibition is

proportionate and would, I suggest

follow the line of reasoning adopted in

the Irish abortion information case

(Case C-159/90,

The Society for the

Protection of the Unborn Child

-v-

Grogan

[1991] ECR 4685).

There are no provisions on the

quantity of services to be provided.

However, in one case, the

Commission objected to a provision in

the Spanish implementing legislation

which sought to restrict to five

the number of times each year

services could be provided and the

provision was removed from the

Spanish law.

At the same time, it is clear that the

Directive was not intended to

provide for establishment in the

host Member State. It remains a fine

line of law to distinguish between an

office in the host state used to

facilitate the provision of

services and an establishment in

the host state.

The Right of Establishment

The first issue to be addressed under

the right to establishment topic is

what services the lawyer establishing

himself in the host state intends to

provide and secondly, is there a

provision in the host state law

reserving the right to give legal advice

to local lawyers.

Monopolies on legal advice exist in

Spain, France, Luxembourg, Greece

and Portugal and until 1990 existed in

Germany. No monopolies on legal

advice exist, as far as I am aware, in

Ireland, the UK, Belgium, the

Netherlands and Italy.

All Member States, on the other hand,

reserve to nationally established

lawyers the right to appear before the

Courts, to draw up certain types of

377