The appellant, Anthony Sestric, is a member of the Missouri bar living and practicing law in St. Louis. He brought this suit against the responsible Illinois officials to invalidate, primarily on federal constitutional grounds, the requirement that a nonresident who wants to practice law in Illinois pass the Illinois bar exam. If Sestric became a resident of Illinois, he could be admitted to the Illinois bar on motion, without taking the bar exam. St. Louis is just across the Mississippi River from Illinois, and Sestric would like to practice law in Illinois without moving to Illinois and without taking the Illinois bar exam. Although his complaint was dismissed on the defendants’ motion for summary judgment, he does not argue that the factual record is insufficient to resolve the issues he has raised on appeal.
Sestric bases his case on the privileges and immunities clause of Article IV of the Constitution (“The Citizens of each State shall be entitled to all Privileges and Immunities of Citizens in the several States”), and also on the better-known commerce and equal protection clauses. (His additional claim, that the refusal to admit him violated Illinois law, clearly has no merit, for the reasons stated by the district judge.) If the privileges and immunities clause could be viewed as a general guaranty against discrimination by states against nonresidents, then it and the commerce clause — viewed not as a grant of power to Congress but as a prohibition against state action inconsistent with free trade among the states (the “negative” or “dormant” commerce clause) — would occupy the same ground, and we would not have to discuss both clauses. As a matter of fact the framers of the Constitution may have intended the privileges and immuni
Illinois does not require that members of its bar be residents of the
state
— a requirement that the U.S. Supreme Court held, after argument in this case, violates the privileges and immunities clause. See
Supreme Court of New Hampshire v. Piper,
— U.S. -,
If Sestric moved to Illinois he would be excused from having to take the Illinois bar exam, provided he had practiced continuously for five of the last seven years in a jurisdiction to whose bar he had been admitted, Ill.S.Ct.R. 705, as Sestric has (we shall call this the “continuous practice” requirement). Therefore he is treated less favorably than a class of (new) Illinois residents. This difference is the basis of Ses-tric’s present claim under the privileges and immunities clause. Whether such a difference violates the clause, or any other provision of the Constitution, is one of first impression at the federal appellate level, although the Massachusetts Supreme Court has held a similar regulation to be in violation of the clause.
In re Jadd,
In any event, Piper, though it is, as we shall see, distinguishable from this case, requires us to take a fresh look at the issue, and not just rest on dicta in lower-court decisions, our own or others’. The Supreme Court stated in Piper that discrimination against a nonresident who wants to practice law violates the privileges and immunities clause unless “(i) there is a substantial reason for the difference in treatment; and (ii) the discrimination practiced against nonresidents bears a substantial relationship to the State’s objective. In deciding whether the discrimination bears a close or substantial relationship to the State’s objective, the Court has considered the availability of less restrictive means.” Id. at 1279 (citation and footnote omitted). This is a tough test to pass, but before applying it to the “discrimination” of which Sestric complains we must ask whether the Supreme Court intended the test to apply to such a claim. Sestric’s claim is different from Piper’s. It is not clear that Sestric has been deprived of a privilege or an immunity within the meaning of the clause or that he is the victim of a discrimination in favor of residents and against nonresidents — or indeed that there is any discrimination between any two groups. Thus he may not even have a prima facie claim under the privileges and immunities clause, or he may have a claim more easily rebutted than Piper’s.
In the usual privileges and immunities case a state conditions a substantial opportunity or “privilege” — such as, in
Piper
itself, the practice of law — on the status of being a resident of the state. Thus in our
Bernardi
case, or in
Hicklin v. Orbeck,
Put differently, if practical exclusion from a socially marginal activity such as hunting elk is not within the scope of the privileges and immunities clause (the nonresident license fee was as much as 25 times higher than the resident license fee, see
The other respect in which this case breaks the mold of previous privileges and immunities cases is that it does not involve a clear-cut preference for residents, most of whom of course have to take the bar exam too; it is a preference for new residents over both old residents and nonresidents. As a matter of fact, the elimination of the preference of which Sestric complains could harm new residents without helping nonresidents. This can be seen by imagining that Illinois bowed to Sestric’s view of his rights under the privileges and immunities clause by requiring everyone— old resident, new resident, nonresident— wanting to practice law in Illinois to take the bar exam. As of course it could do: “Our holding in this case does not interfere with the ability of the states to regulate their bars. The nonresident who seeks to join a bar, unlike- the
pro hae vice
applicant, must have the same professional and personal qualifications required of resident lawyers.”
Supreme Court of New Hampshire v. Piper, supra,
This suggests that there is something amiss with Sestric’s claim. And, indeed, even at the purely verbal level of constitutional interpretation a nonresident’s complaint about a burden (taking the bar exam) that also rests on many residents (all but new residents) does not fit the privileges and immunities clause comfortably. The clause speaks of the privileges and immunities “of Citizens in the several States,” and in this case it may be asked: which citizens of Illinois — old ones or new ones — provide the measure of Sestric’s rights? There is also a substantial argument of policy. If (unlike the present case) the State of Illinois, while allowing nonresidents to practice law if they passed the bar exam, allowed any resident to practice law without having to pass the bar exam, it would be discriminating in favor of residents and against nonresidents. There would be a suspicion that the discrimination was unjustified — a needless though far from insurmountable obstacle to interstate mobility of lawyers — because the burden would be borne by nonresidents, who have no voice in the public policy of the state. Cf.
Toomer v. Witsell, supra,
Discrimination against new residents has been a frequent target of constitutional attack; one has only to recall
Shapiro v. Thompson,
Not only has Illinois not denied a privilege to nonresidents that is generally available to residents, but it may not have imposed a net burden on nonresidents even compared to the favored resident group— the new residents. The Florida lawyer (say) who by moving to Illinois can be admitted to the Illinois bar without having to take the Illinois bar exam would probably be giving up his Florida practice. He would not have to give it up, but even today most lawyers have a local rather than multistate practice, and therefore most lawyers who change states abandon their former practice. If he had remained in Florida and sought admission to the Illinois bar as a nonresident, he would have to take the bar exam, but on the other hand he would be retaining his Florida practice; he would not stay in Florida if he wanted to practice law full-time in Illinois. Thus, though he would have taken (so far in his professional lifetime) two bar exams, he would have done so in order to practice in two states, not in one state as in our first example. Sestric does not propose to give up his Missouri practice for an Illinois practice. He wants to practice in both states though he has passed only one bar. If allowed to do this he will be better off than a lawyer who pulls up stakes in Missouri and relocates to Illinois. Of course if that lawyer retains his Missouri practice, as he could do since he would still be a member of the Missouri bar, his position would be symmetrical with what Sestric is seeking for himself. But as is usually the case in law, we are dealing with probabilities rather than certainties. A person who moves to another state is unlikely to have a multi-state practice, while a person who applies for admission to a state’s bar as a nonresident must be seeking to have at least a two-state practice. It is not obviously unreasonable to make him take a second bar exam.
As we cannot say that Illinois’ rule is more likely to impede than to increase the interstate mobility of lawyers, it is apparent that Illinois has not violated the commerce clause. A state may not place unreasonable burdens on free trade among the states; and among the markets that the states must not attempt to balkanize through tariffs or regulation are labor markets, see, e.g.,
W.C.M. Window Co. v. Bernardi, supra,
It is true that explicitly reciprocal trade barriers have been knocked down under the commerce clause, see, e.g.,
A & P Tea Co. v. Cottrell,
The plaintiff’s real objection, as it seems to us, is not that the Illinois rule keeps him, as a nonresident, from practicing law in Illinois but that it creates an arbitrary distinction between experienced new residents and equally experienced nonresidents by excusing the former from the bar exam required of the latter. This is a claim most naturally assessed under the equal protection clause of the Fourteenth Amendment. One response, already suggested, is that there is no discrimination— no (net) difference of treatment between persons similarly situated. But if there is, it is a rational discrimination, and that is all the justification that the equal protection clause requires for such a distinction.
Schware v. Board of Bar Examiners,
The plaintiff is claiming a right to practice law in Illinois without being a resident and without taking a bar exam. There can be no assurance that he knows Illinois law well enough to represent clients in Illinois competently. Although there might seem to be no greater assurance regarding lawyers who move to Illinois and are admitted without having to take a bar exam, they at least are making a greater commitment to the state. By becoming residents of Illinois they place themselves in a situation where in all likelihood the bulk of their clients will be Illinois clients; the bulk of the law they practice will be Illinois law; and they will learn through doing. (Of course this is not so in every case; some Illinois lawyers, especially in the large firms in Chicago, have a federal or multi-state rather than Illinois practice.) A nonresident who practices law in Illinois might do so on a most intermittent basis. He has not made the commitment entailed in becoming a resident. The focus of his practice being elsewhere, his incentive to master Illinois law is less than that of a resident who expects to practice Illinois law full time. Taking and passing the bar exam is thus a substitute commitment for residence; it forces the nonresident to bone up on Illinois law. And it is a far less burdensome commitment than moving into
Of course one can find — and readily, too — holes in Illinois’ defense to the charge of undue favoritism to new residents:
1. It has long been argued that bar exams test skill in “cramming,” rather than knowledge of state law, and that by never reexamining those who are admitted to the bar a state gives no protection against the loss of legal skills through disuse or forgetting. But this argument is too powerful. It is an argument against ever making the bar exam a condition of admission to the bar. The universality of the requirement makes this a dubious argument. (In contrast, in
Piper
the Supreme Court pointed out that a number of states —including, of course, Illinois — had stopped requiring residence as a condition of admission to the bar. See
2. A lawyer might move to Illinois, become a member of the Illinois bar without taking the bar exam, and a few weeks later leave Illinois, so that although he would remain a member of the Illinois bar his situation would be realistically the same as that of a nonresident lawyer. But such cases are rare. Although the word “resident” is a chameleon, see, e.g.,
Lister v. Hoover,
3. There are alternative methods to the bar exam for assuring that nonresidents know enough local law to practice competently, such as “a continuing practice requirement measured by a minimum volume of local work per year,” “mandatory continuing legal education for all licensed attorneys,” and “periodic reexamination of
4. The economic analysis of professional licensure in general, see, e.g., Friedman, Capitalism and Freedom 137-60 (1962); Sti-gler, The Theory of Economic Regulation, 2 Bell J. Econ. & Management Sci. 3, 13-17 (1971); Occupational Licensure and Regulation (Rottenberg ed. 1980); Shepard, Licensing Restrictions and the Cost of Dental Care, 21 J.Law & Econ. 187 (1978), and of the licensing of lawyers in particular, see, e.g., Pashigian, Occupational Licensing and the Interstate Mobility of Professionals, 22 J.Law & Econ. 1 (1979), teaches that the licensing of lawyers is an anachronism, or worse; that a free market in legal services will yield the optimal quality at the optimal price; and that a bar exam, administered once in a lawyer’s lifetime, gives no assurance of minimum quality over the lawyer’s professional lifetime— and indeed has no other purpose than to limit the number of lawyers and hence keep the prices of their services up. One who is persuaded of these theses will doubt that Illinois should be allowed to make anyone take a bar exam — even a lawyer from Hawaii who has one piece of business in Illinois every decade but wants to tell his clients that he is qualified to practice law in every state. Although having to pass a bar exam would indeed discourage such birds of passage, skeptics of lawyer licensing will argue that all that is important (if that — maybe the discipline of the market is enough) is that the lawyer be subject to discipline by the state, as any member of the Illinois bar is no matter where he lives. But we do not think that the equal protection clause ordains in effect a national bar, whereby admission to one state’s bar is admission to every other’s unless the other state refuses to admit new residents on the basis of their license in the state where they have practiced continuously for a period of time in the recent past. A majority of states, and the District of Columbia, allow admission of new residents on the basis of practice in another state. See American Bar Ass’n, Comprehensive Guide to Bar Admission Requirements 30-31 (1984) (Chart VIII). If Sestric’s claim prevails, these states will have to decide whether to end this privilege or stand willing to admit on motion most lawyers in the country.
The Supreme Court has said that the high costs of information that many clients face in choosing among lawyers and monitoring the performance of the lawyer they have chosen justify the states in regulating the advertising of legal services with an even freer hand than the First Amendment allows government in regulating the advertising of ordinary goods and services. See
Bates v. State Bar of Arizona,
This is enough to show that the challenged rule does not deny Sestrie the equal protection of the laws, even if (as we
Although the cases discuss issues under the privileges and immunities and commerce clauses separately, reflecting the historical divergence in the interpretation of these closely related provisions, we do not find in the cases the expression of a desire to set a higher standard for justifying the identical “discrimination” when it is challenged under the privileges and immunities clause than when it is challenged under the commerce clause. Indeed, when the discrimination is within the scope of both clauses, the courts typically cite decisions under either interchangeably. See, e.g.,
Hicklin v. Orbeck, supra,
Where, as in Piper (had it been brought as a commerce clause case), the interference with free trade consists of totally barring nonresidents from a trade or calling, the burden of justification is great. Where the interference is small and maybe nonexistent (we said earlier that the Illinois rules actually increase the interstate mobility of lawyers, but here we are concerned with the standard of justification — if justification were necessary), a lighter burden of justification is appropriate. This is so whether the challenge is cast in privileges and immunities terms or in commerce clause terms. The two clauses are part of the same document, drafted by very intelligent and careful men; why would they have wanted the same discrimination against nonresidents to be tested by a different standard, depending on which clause was cited in the complaint? We do not read Piper to create such a distinction. The rigorous test of justification that it lays down is designed for cases where a trade or calling is confined to residents, and that is not this case.
But if all this is wrong we still think Sestric must lose, because Illinois’ rule passes even the test in
Piper.
The requirement of taking and passing the bar exam must be regarded, in light of its universality, as having a “close or substantial” relationship to a state’s legitimate objective of keeping up the quality of its bar. While alternative methods of keeping up that quality can easily be imagined, it is not clear, as we have said, that they would be any less restrictive than the bar exam. Constant judicial policing might be necessary to ensure that they were less restrictive. We might see the emergence of a judge-made counterpart to the Equal Employment Opportunity Commission’s guidelines for tests and other methods of selecting employees. See 29 C.F.R. Part 1607.
As the last point suggests, Sestric’s appeal is a challenge to the widespread practice of bar reciprocity, which typically favors (though perhaps superficially, as we have seen) new residents over nonresidents. The alternatives to reciprocity are a national bar or no reciprocity at all. The former might be superior to the system we have in this country for regulating the bar. But it is not even clear that reversing the district court would bring us closer to the national bar, rather than just destroy reciprocity. And if it would do the former, still not every good thing is constitutionally required; we think this particular good thing (if it is a good thing) is not.
Affirmed.
