Bates v. State Bar of Arizona

433 U.S. 350, 51 Ohio Misc. 1
CourtSupreme Court of the United States
DecidedJune 27, 1977
DocketNo. 76-316
StatusPublished
Cited by975 cases

This text of 433 U.S. 350 (Bates v. State Bar of Arizona) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bates v. State Bar of Arizona, 433 U.S. 350, 51 Ohio Misc. 1 (1977).

Opinions

Mr. Justice Blackmun

delivered the opinion of the court.

As part of its regulation of the Arizona Bar, the Supreme Court of that state has imposed and enforces a disciplinary rule that restricts advertising by attorneys. This case presents two issues: whether Secs. 1 and 2 of the Sherman Act, 15 U. S. Code Secs. 1 and 2, forbid such state regulation, and whether the operation of the rule violates the First Amendment, made applicable to the states through the Fourteenth.1

[2]*2I

Appellants John B. Bates and Van O’Steen are attorneys licensed to practice law in the State of Arizona.2' As such, they are members of the appellee, the State Bar of Arizona.3 After admission to the bar in 1972, appellants worked as attorneys with the Maricopa County Legal Aid Society. App. 221.

In March 1974, appellants left the society and opened a law office, which they call a “legal clinic,” in Phoenix. Their aim was to provide legal services at modest fees to persons of moderate income who did not qualify for governmental legal aid. Id., at 75. In order to achieve this end, they would accept only routine matters, such as uncontested divorces, uncontested adoptions, simple personal bankruptcies, and changes of name, for which costs could be kept down by extensive use of paralegals, automatic typewriting equipment, and standardized forms and office procedures. More complicated cases, such as contested divorces, would not be accepted. Id., at 97. Because appellants set their prices so as to have a relatively low return on each case they handled, they depended on substantial volume. Id., at 122-123.

[3]*3After conducting their practice in this manner for two years, appellants concluded that their practice and clinical concept could not survive unless the availability of legal services at low cost was advertised and, in particular, fees were advertised. Id., at 120-123. Consequently, in order to generate the necessary flow of business, that is, “to attract clients,” id., at 121; Tr. of Oral Arg. 4, appellants on February 22, 1976, placed an advertisement (reproduced in the Appendix, post, p. 50) in the Arizona, Republic, a daily newspaper of general circulation in the Phoenix metropolitan area. As may be seen, the advertisement stated that appellants were offering “legal services at very reasonable fees,” and listed their fees for certain services.*

Appellants concede that the advertisement constituted a clear violation of Disciplinary Rule 2-101 (B), embodied in Rule 29(a) of the Supreme Court of Arizona, 17A Ariz. Rev. Stat. (1976 Supp.), p. 26. The disciplinary rule provides in part:

“(B) A lawyer shall not publicize himself, or his partner, or association, or any other lawyer affiliated with him or his firm, as a lawyer through newspaper or magazine advertisements, radio or television announcements, display advertisements in the city or telephone directories or other means of commercial publicity, nor shall he authorize or permit others to do so in his behalf.”5

4The office benefited from an increase in business after the appearance of the advertisement. App. 235-236, 479-480. It is doubtful, however, whether the increase was due solely to the advertisement, for the advertising itself prompted several news stories. App. 229. It might be expected, nonetheless, that advertising will increase business. See Hobbs, Lawyer Advertising: A Good Beginning but Not Enough, 62 A. B. A. J. 735, 736 (1976) (lawyer referral service that advertised referred more than 11 times as many clients as one that did not advertise in another city of comparable size).

[4]*4Upon the filing of a complaint initiated by the president of the State Bar, App. 350, a hearing was held before a three-member Special Local Administrative Committee, as prescribed by Arizona Supreme Court Rule 33. App. 16. Although the committee took the position that it could not consider an attack on the validity of the rule, it allowed the parties to develop a record on which such a challenge could be based. The committee recommended that each of the appellants be suspended from the practice of law for not less than six months. Id., at 482. Upon further review by the Board of Governors of the State Bar, pursuant to the Supreme Court’s Buie 36, the board recommended only a one-week suspension for each appellant, the weeks to run consecutively. App. 486-487.

Appellants, as permitted by the Supreme Court’s Buie 37, then sought review in the Supreme Court of Arizona, arguing, among other things, that the disciplinary rule violated Secs. 1 and 2 of the Sherman Act because of its tendency to limit competition, and that the rule infringed their First Amendment rights. The court rejected both claims. Matter of Bates (1976), 113 Ariz. 394, 555 P. 2d 640. The Plurality6 may have viewed with some skepti[5]*5cism the claim that a restraint on advertising might have an adverse effect on competition.7 But, even if the rule might otherwise violate the act, the plurality concluded that the regulation was exempt from Sherman Act attack because the rule “is an activity of the State of Arizona acting as sovereign.” Id., at-, 555 P. 2d, at 643. The regulation thus was held to be shielded from the Sherman Act by the state-action exemption of Parker v. Brown (1943), 317 U. S. 341.

Turning to the First Amendment issue, the plurality noted that restrictions on professional advertising have survived constitutional challenge in the past, citing, along with other cases, Williamson v. Lee Optical Co. (1955), 348 U. S. 483, and Semler v. Dental Examiners (1935)8, 294 U. S. 608. Although recognizing that Virginia Pharmacy Board v. Virginia Consumer Council (1976), 425 U. S. 748 and Bigelow v. Virginia (1975), 421 U. S. 809, held that commercial speech was entitled to certain protection under the First Amendment, the plurality focused on passages [6]*6in those opinions acknowledging that special considerations might bear on the advertising of professional services by lawyers. See Virginia Pharmacy Board v. Virginia Consumer Council, 425 U. S., at 773 n. 25; id., at 773-775 (concurring opinion); Bigelow v. Virginia, 421 U. S., at 825 n. 10. The plurality apparently was of the view that the older decisions dealing with professional advertising survived these recent cases unscathed, and held that Disciplinary Eule 2-101 (B) passed First Amendment muster.9 Because the court, in agreement with the Board of Governors, felt that appellants’ advertising “was done in good faith to test the constitutionality of DE 2-101 (B),” it reduced the sanction to censure only.10 113 Ariz., at -, 555 P. 2d, at 646.

Of particular interest here is the opinion of Mr. Justice Holohan in dissent.

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Bluebook (online)
433 U.S. 350, 51 Ohio Misc. 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bates-v-state-bar-of-arizona-scotus-1977.