Act Now Advisory: Companies Must Retain Counsel to Answer Garnishments in Georgia

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On September 12, 2011, the Supreme Court of Georgia approved UPL Advisory Opinion No. 2010-1 (“Advisory Opinion”), which was issued by the State Bar of Georgia’s Standing Committee on the Unlicensed Practice of Law (“Standing Committee”). As a result of the Supreme Court’s thinly worded decision, companies must now use an attorney to answer certain garnishment actions in Georgia. Proponents of the Supreme Court’s decision contend that requiring attorneys to answer garnishments means that fewer mistakes will be made. Opponents contend that requiring attorneys to file answers to garnishments will only drive up costs for businesses and create more work for attorneys.

The Supreme Court’s decision contained a concurring opinion by Justice David E. Nahmias that sets forth a step-by-step plan for the opponents of the decision to undo the new garnishment rule. Specifically, the concurring opinion suggests that opponents of the decision may seek relief through a possible rule change by the Judicial Council of the State Bar or seek relief from the General Assembly.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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