In re James B. Hobi

CourtSupreme Court of Delaware
DecidedJune 25, 2024
Docket171, 2024
StatusPublished

This text of In re James B. Hobi (In re James B. Hobi) is published on Counsel Stack Legal Research, covering Supreme Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re James B. Hobi, (Del. 2024).

Opinion

IN THE SUPREME COURT OF THE STATE OF DELAWARE

IN RE JAMES B. HOBI, § § No. 171, 2024 Respondent, § Rule 55.1 In-House Counsel. §

Submitted: June 17, 2024 Decided: June 25, 2024

Before VALIHURA, TRAYNOR, and LEGROW, Justices.

PER CURIAM: ORDER

After consideration of the rule to show cause and the responses, it

appears to the Court that:

(1) On April 26, 2024, the Court ordered that James B. Hobi’s

authority to practice under Supreme Court Rule 55.1 be automatically

suspended because he had failed to comply with the provisions of Rule 55.1.

Namely, Hobi was not employed in Delaware as a lawyer working exclusively

for a company whose business was not the practice of law or provision of legal

services as required by Rule 55.1(a) and he had failed to notify the Court Clerk

that there was a change in circumstances making him ineligible for limited

practice as required by Rule 55.1(h)(1). The Court further ordered that Hobi

show cause within thirty days why his Delaware Certificate of Limited

Practice under Rule 55.1 should not be terminated and ineligible for reinstatement except in accordance with Rule 22 of the Delaware Lawyers’

Rules of Disciplinary Procedure.

(2) In his subsequent filings with the Court, Hobi has purported to

resign as Rule 55.1 in-house counsel. He asks to be eligible for reinstatement

without being subject to Rule 22 of the Delaware Lawyers’ Rules of

Disciplinary Procedure, claiming that he did not understand the requirements

of Rule 55.1.

(3) Under Rule 55.1, “[a] lawyer admitted to the practice of law in a

jurisdiction other than this state, of the United States, may apply for a

Delaware Certificate of Limited Practice, which will allow the lawyer to

practice law as in-house counsel in this state.”1 An eligible lawyer “must be

employed in the state as a lawyer working exclusively for a for-profit or a

non-profit corporation, association, or other organizational entity…the

business of which is lawful and is other than the practice of law or the

provision of legal services.”2

(4) To obtain his Certificate of Limited Practice, Hobi had to submit

an application certifying that he was employed exclusively by an employer

1 Supr. Ct. R. 55.1(a). See also Hanson v. Morton, 67 A.3d 437, 443 (Del. 2013) (“Delaware Supreme Court Rule 55.1 allows attorneys admitted in other jurisdictions to practice as inhouse corporate counsel in Delaware, with the caveat that such attorneys cannot appear in court.”). 2 Supr. Ct. R. 55.1(a).

2 whose business was other than the practice of law or the provision of legal

services.3 He also had to submit the affidavit of an officer of his employer

identifying the employer’s principal place of business in Delaware and

certifying that Hobi was employed as in-house counsel and worked

exclusively for the employer.4

(5) After an attorney contacted the Office of Disciplinary Counsel

(“ODC”) in April 2024 to express concerns regarding Hobi’s representation

of a party in litigation pending in the United States District Court for the

District of Columbia, ODC conducted an investigation. ODC determined,

among other things, that Hobi’s employer, Buchanan Enterprises, LLC, had

provided the address of a Mail Express location in Middletown as its principal

place of business in Delaware. In his response to the rule to show cause, Hobi

describes the Middletown address as a mailing address and claims that there

is access to “office suites used by other law firms, state companies and multi

state companies in Wilmington.”5 It is unclear when this access was obtained

or whether the office suites were ever used by Hobi or Buchanan. Hobi

describes his work for Buchanan, an “emerging concept company planning

3 Id. R. 55.1(b); Form 1. 4 Supr. Ct. R. 55.1(b); Form 4. 5 Response to Show Cause Order ¶ 1.

3 Veterans Housing,” as “part time and hybrid,” but does not explain what

business he or Buchanan does in Delaware.6

(6) ODC also learned that Hobi used his Delaware Certificate of

Limited Practice to obtain admission to the United States District and

Bankruptcy Courts for the District of Columbia, which Hobi does not dispute.

Nor does Hobi dispute that the website for American Law & Tax Counsel,

PLLC describes Hobi as an attorney “[h]elping clients with Tax, Bankruptcy,

Immigration, Federal Agency Compliance, Federal/National Bank Law, and

Federal Employment Law” and includes testimonials from multiple clients

(none of which are identified as Buchanan) about the legal services they

received from Hobi and his firm.7 Hobi admits that he has been representing

clients other than Buchanan Enterprises in the District of Columbia federal

courts.8

6 Response ¶ 3. 7 American Law & Tax Counsel, PLLC, https://amlawyer.us/; Strategic Legal Plans & Tax Optimization, https://amlawyer.us/testimonials-contact-info-1 (last visited June 24, 2024). Hobi claims that he has not joined a law firm, but the website testimonials repeatedly refer to Hobi and a firm. 8 Response ¶¶ 1, 7. See also In re Pe, 2022 WL 4488183 (Bankr. D.C. Sept. 27, 2022) (listing Hobi as counsel for the debtor and individual defendant). Hobi describes his work for one client as “unpaid…that will only be paid on contingency.” Response ¶ 7. According to the website, American Law & Tax Counsel, PLLC will accept various forms of payment, including credit and debit cards. American Law & Tax Counsel, PLLC, https://amlawyer.us/ (last visited June 24, 2024).

4 (7) Despite representing clients in the District of Columbia and not

exclusively providing legal services to Buchanan, Hobi failed to inform the

Court that he was no longer eligible (assuming he ever was) to practice under

Rule 55.1. Hobi claims that he was “unaware that exclusivity extended to

other jurisdictions” and “can find no clear language in the rules prohibiting

work in another jurisdiction.”9 In making this claim, Hobi ignores the plain

text of Rule 55.1(a), which provides that “[i]n-house counsel who is eligible

for this certificate must be employed in the state as a lawyer working

exclusively for a for-profit or a non-profit” company,10 and Rule 55.1(b)(3),

which requires the lawyer’s employer to attest that “the applicant is employed

as a lawyer to provide legal services exclusively to the Employer.” 11 He also

ignores the plain language of the forms he had to submit for permission to

practice under Rule 55.1.12

(8) Because the Supreme Court Rules do not define “exclusive” or

“exclusively,” ODC recommends that the Court consider dictionary

9 Response at 1. 10 Supr. Ct. R. 55.1(a) (emphasis added). 11 Id. R. 55.1(b)(3) (emphasis added). 12 Form 1 (“I certify that I am employed exclusively as legal counsel for the [Full Name of Company or Business Entity] whose business is other than the practice of law or the provision of legal services.”) (emphasis added); Form 4 (“I certify that Applicant works exclusively for [NAME OF COMPANY] or one of more of its subsidiaries or affiliates whose business is other than the practice of law or the provision of legal services.”) (emphasis added).

5 definitions to ascertain the plain meaning of those terms.13 Black’s Law

Dictionary defines “exclusive” as “limited to a particular person, group,

entity, or thing” and “unable to be true if something else is true.”14 Merriam-

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Related

Hanson v. Morton
67 A.3d 437 (Supreme Court of Delaware, 2013)

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