In July, the Judicial Reform Council commenced. Although topics to be
discussed in the Council are still undecided, whether they would debate the
issue of foreign attorneys is unknown. Therefore, we asked Mr. Grondine
his thoughts on several issues, including foreign attorneys in Japan.
First of all, can we ask what you are currently working on?
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Mainly I conduct business that cross borders. Recently, I have been
handling more M&A cases. In addition, I advise foreign investors on
delinquent loans on property related deals.
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I assume that the contracts are based upon Japanese law?
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They include both American and Japanese law. Even though the proper
law is Japanese law, since most of my clients are foreign investors, we
sometimes attend contract negotiations to provide satisfactory explanations
of the negotiations in English.
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Are there any inconveniences that you face as a foreign attorney
practicing in Japan?
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The Japan Federation of Bar Associations stipulates in detail on how we
can operate in Japan. Although it designates us as special members, we are
only considered administrative attorneys and are not given equal status.
This is the core of the problem.
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In a "specified joint business," Japanese attorneys act as the main
counsel, don't they?
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In our job, we only work as a team. We all need to act as practicing
attorneys and it is essential for everyone to grasp the entire situation.
Therefore, it does not really matter who acts as the main counsel.
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Can you explain why you are critical of Foreign Practicing Attorneys
Act, Article 49 which stipulates that foreign attorneys cannot hire
Japanese attorneys because it violates the basic principle of the Act which
prohibits foreign attorneys from occupying the commanding role ?
This is one of those distinctive Japanese concepts that is
stereotypical of Japanese culture. In this profession, the concept of
"command structure" should not exist because each attorney has his/her own
ethical obligations. Attorneys are obligated to refuse client requests if
they feel there is an ethical contradiction. However, the Japan Federation
of Bar Associations attached some nonsense to this. They think that when
foreigners who have arrived in Japan conduct dubious business, it would
impede the opinion of the pure Japanese that work for them. I wish they
would stop thinking that way. In fact, if anyone did do something wrong,
all they have to do is deal with that particular problem.
Nonetheless, it is acceptable for Japanese attorneys to hire foreign
attorneys. Since Japanese attorneys are respectable, it is presumed that
they will always abide by the code of ethics. Therefore, they can employ
foreign attorneys. On the other hand, foreigners are considered to have
perverted personalities and are therefore unreliable. Based on this notion,
foreign attorneys are likely to give distorted commands to their employees.
No matter what you think, this is proof that we are not considered as
equals.
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