New California Law Would Draw International Arbitrations To State

Mayer Brown Legal Update

California is expected to pass a new law, SB 766, clarifying that lawyers who are not members of the California bar may appear in international arbitrations seated in California without local counsel. The law, which has been passed by the California Assembly and is awaiting the signature of Governor Jerry Brown, is part of the state's effort to increase its visibility as a center for international arbitration.

Currently, foreign lawyers are required to engage local co-counsel to appear in international arbitrations seated in the state because of uncertainty created by a 1998 California Supreme Court decision. In Birbrower v. Superior Court of Santa Clara County, 949 P.2d 1 (Cal. 1998), the court ruled that a New York law firm had engaged in the unauthorized practice of law through various activities in the state, including arbitration-related activities. The court specifically declined to create an exception for arbitrations. The