Bar Ass'n of Dallas v. Hexter Title & Abstract Co.

175 S.W.2d 108
CourtCourt of Appeals of Texas
DecidedOctober 8, 1943
DocketNo. 14566.
StatusPublished
Cited by10 cases

This text of 175 S.W.2d 108 (Bar Ass'n of Dallas v. Hexter Title & Abstract Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bar Ass'n of Dallas v. Hexter Title & Abstract Co., 175 S.W.2d 108 (Tex. Ct. App. 1943).

Opinion

SPEER, Justice.

This suit was brought for the purpose of enjoining the defendant, Hexter Title and Abstract Company, a private corporation, from doing certain acts which are alleged to be in violation of the provisions of Article 430a of Vernon’s Penal Statutes of Texas; such statute having for its purpose the prevention of any corporation, person, firm, or association of persons from practicing law in Texas, excepting natural persons who are regularly admitted and licensed members of the bar.

The defendant, in the conduct of its business, is the lawful agent of an insurance company that issues title insurance policies. on properties in Texas.

The record discloses that the first suit brought against the defendant was instituted in the name of The Bar Association of Dallas, a corporation, and joining in the petition were David B. Love, Sam Boren and A. J. Roberts, all being resident lawyers, duly licensed to practice law in Texas.

Boren and Roberts withdrew as plaintiffs before trial was had.

The second suit was instituted by the Grievance Committee of the State Bar of Texas for the Fifth Congressional District, composed of Wm. P. Goar, C. K. Bullard, David B. Love, M. M. Crane, Jr., Norman Hamilton, C. J. Shaeffer, Frank Cain, Dallas Blankenship and Adair Dyer, who are admittedly duly licensed and practicing lawyers of Dallas, Texas.

Pleas in abatement were addressed to both of the petitions and, after the trial court consolidated the causes, the plea was sustained as to the first petition.

The order on the plea recites that the suit was filed without authority from the corporate plaintiff, The Bar Association of Dallas, and that such corporation has no legal authority to prosecute the suit; that the grounds of the plea in abatement constitute matters which may not be cured by amendment; and the trial court taxed all costs incurred in such suit against the individual plaintiffs who joined the Bar Association in the suit.

We gather from the trial court’s order that the suit was left pending with the natural person, David P. Love, as plaintiff.

The plea in abatement addressed to the second suit was overruled, and the cause was tried to the court without the assistance of a jury.

The parties stipulated as to the facts, and the defendant admitted the following:

“1. Plaintiff The Bar Association of Dallas is a non-stock corporation organized and existing under and by virtue of the laws of the State of Texas with its principal office and place of business in Dallas, Dallas County, Texas, having as members only persons licensed to practice law in Texas; plaintiffs David B. Love, Sam Boren and A. J. Roberts are members of the Unauthorized Practice Committee of the Bar Association of Dallas, and are each individuals licensed to practice law and arc residents of Dallas, Dallas County, Texas; and defendant Hexter Title & Abstract Co., Inc., is a corporation organized and existing under and by virtue of the laws of the State of Texas ‘to make, compile and own abstracts of title to land and liens of any character on any property or any other abstracts of record in this state or county thereof required by law’ with its principal office and place of business, in Dallas, Dallas County, Texas, where it has an agent upon whom service may be had.

“2. Defendant has heretofore furnished opinions as to conditions of title to real estate but has discontinued such practice more than three months prior to the filing *111 of this cause and does not intend or purpose to engage in such course of conduct.

“3. Defendant’s officers, agents and employees, with its approval and authority, have heretofore prepared, and are now preparing and, unless restrained, will in the future prepare for execution by persons not employed in its business (a) deeds conveying land in which it owns no interest and does not acquire an interest by such deeds, (b) notes, mortgages and deeds of trust in which it has no interest as borrower or lender, (c) mechanic’s and materialman’s lien contracts to which it is not a party, (d) releases, transfers, subordination agreements and other instruments affecting the title to real estate and liens thereon in which it does not own and is not acquiring an interest therein, and (e) such additional instruments as may be necessary in connection with perfecting the titles upon which it is issuing or plans to issue title policies. Most of such instruments have been and hereafter will be prepared in connection with transactions in the course of which defendant issues or obligates itself to issue policies of title insurance. The defendant has occasionally in the past and will occasionally in the future prepare some or all of the foregoing instruments for execution by persons not employed in its business in connection with transactions in which it does not issue or is not obligated to issue policies of title insurance but has prepared an abstract of title.

“4. No separate charge is made by defendant for such service set forth in paragraph 3 but defendant is obligated to and does charge premium rates for title insurance policies as fixed by the Insurance Commissioners of Texas. Such regulations prescribing the schedule of fees for title insurance include a provision that such charges include ‘the fee for insurance, title examination and closing of deal, no other services.’ and that ‘fees for all other services such as conveyancing, escrow and inspection shall be the customary fee for such services in the particular county in which the service is being rendered.’

“5. Defendant has in its employ four licensed attorneys who supervise the preparation and execution of the instruments listed in paragraph 3 hereof and advise the interested parties the purpose and effect thereof but who do not perform any other legal services on behalf of defendant for patrons and customers of defendants.

“6. Defendant does not advise persons, firms and corporations as to their legal rights except as to the purpose and effect of the instruments drawn as set out in paragraph 3 and in the manner set out in paragraph 5.

“7. Defendant holds itself out to perform such services for its customers and as possessing authority to render services for them, as set forth in paragraph 3 hereof, which services defendant does not agree constitute ‘legal services’, but other than such services, defendant does not hold itself out to perform legal services for its customers and as possessing authority to render legal services for them which require the use of legal knowledge or skill.

“8. Defendant openly solicits employment verbally and by advertisement, for the preparation of abstracts and the issuance of title policies and in connection with the issuance of title policies represents that it will prepare, in connection therewith, instruments set forth in paragraph 3, but does not otherwise solicit legal employment nor does it induce its customers and the public to place themselves at the mercy of defendant and its employed legal staff.

“9. The individual plaintiffs, as individuals and in the name of the corporate plaintiff, have requested defendant to cease and desist from further commission of the acts set forth in paragraphs 3, S, 7 and 8, but defendant has refused to desist and has advised plaintiff that it would continue such course of conduct.

“10.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Robert C. Morris v. Sherri Milligan
Court of Appeals of Texas, 2016
Michael J. DeLitta v. Nancy Schaefer
Court of Appeals of Texas, 2015
American Home Assurance Co. v. Unauthorized Practice of Law Committee
121 S.W.3d 831 (Court of Appeals of Texas, 2004)
Darby v. Mississippi State Board of Bar Admissions
185 So. 2d 684 (Mississippi Supreme Court, 1966)
North Dade Bar Ass'n v. Dade-Commonwealth Title Insurance
143 So. 2d 201 (District Court of Appeal of Florida, 1962)
Untitled Texas Attorney General Opinion
Texas Attorney General Reports, 1957
Rattikin Title Co. v. Grievance Committee of State Bar of Texas
272 S.W.2d 948 (Court of Appeals of Texas, 1954)
Hexter Title & Abstract Co. v. Grievance Committee
179 S.W.2d 946 (Texas Supreme Court, 1944)

Cite This Page — Counsel Stack

Bluebook (online)
175 S.W.2d 108, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bar-assn-of-dallas-v-hexter-title-abstract-co-texapp-1943.