COFFEE CTY. ABSTRACT AND TITLE CO. v. State Ex Rel. Norwood

445 So. 2d 852
CourtSupreme Court of Alabama
DecidedDecember 2, 1983
Docket81-838
StatusPublished
Cited by7 cases

This text of 445 So. 2d 852 (COFFEE CTY. ABSTRACT AND TITLE CO. v. State Ex Rel. Norwood) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
COFFEE CTY. ABSTRACT AND TITLE CO. v. State Ex Rel. Norwood, 445 So. 2d 852 (Ala. 1983).

Opinion

445 So.2d 852 (1983)

COFFEE COUNTY ABSTRACT AND TITLE CO., and Frank E. Hearn
v.
STATE of Alabama ex rel. Phillip W. NORWOOD, etc.

81-838.

Supreme Court of Alabama.

September 23, 1983.
As Modified On Rehearing December 2, 1983.
Rehearing Denied February 3, 1984.

*853 Joel F. Dubina and Robert E. Sasser of Jones, Murray, Stewart & Yarbrough, Montgomery, for appellants.

William H. Morrow, Jr., Gen. Counsel, Alabama State Bar, Montgomery, for appellee.

Patricia D. Gurne and Albert A. Foer of Jackson, Campbell & Parkinson, Washington, D.C., and M. Roland Nachman, Jr. for Steiner, Crum & Baker, Montgomery, for amicus curiae American Land Title Ass'n.

ALMON, Justice.

This appeal arises from a judgment granted on a petition for writ of quo warranto filed in the Circuit Court of Coffee County. The State of Alabama, on the relation of Phillip W. Norwood, individually and as chairman of the Unauthorized Practice of Law Committee of the Alabama State Bar, sought the writ against Coffee County Abstract and Title Company, Inc., James C. Key, and Frank E. Hearn, Jr. The complaint charged the defendants with the unauthorized practice of law and sought to have them enjoined from further acts constituting the practice of law.

The circuit court held that James C. Key had not unlawfully engaged in the practice of law, but that Coffee County Abstract and Title Company and Frank E. Hearn, Jr. were unlawfully intruding into the profession and practice of law. The court dismissed Key as a defendant and excluded Hearn and Coffee County Abstract and Title from the profession and prohibited them from practicing law in Alabama. The judgment enjoined these two defendants from:

"a. Preparing, drawing, assisting in preparing or drawing or filling out blanks of deeds, mortgages or other instruments of conveyancing for others which affect or relate to secular rights unless defendants have a proprietary interest in such property; and
"b. Conducting real estate closings in Alabama whether or not the closing is incidental to issuance of title insurance or no fee is made other than the title insurance premium."

The following facts led to the filing of this proceeding: on June 27, 1980, Dennis R. Sundell and John Michael Tomkovich purchased a townhouse in Enterprise, Alabama. They were lieutenants in the United States Army stationed at Fort Rucker and wanted the house as a residence and an investment. Both men were single. Upon arriving in Enterprise, they had gone to Whittaker-Warren Realtors, where Suzanne Byars agreed to show them available houses. They agreed to buy the townhouse at 13 Anthony Circle and signed an agreement of purchase on May 31, 1980. James C. Key signed the agreement as seller. K & G Development owned the property, and Key was the president of K & G.

*854 The sale was closed on June 27, 1980, at the office of Coffee County Abstract and Title. Sundell, Tomkovich, Hearn, and Byars were present, as were Marti Foster, a broker for K & G Development, and Mr. Warren of Whittaker-Warren Realtors. Hearn conducted the closing and at the conclusion thereof invited Sundell and Tomkovich to call him if they had any questions. During the closing, Tomkovich asked Hearn if title was passing in such a way that, should either grantee die, that grantee's heirs would take his interest. Hearn told them that was the case, but the deed in fact passed title to them jointly with right of survivorship.

Shortly after the closing, Sundell and Tomkovich received a telephone call from a local lawyer who informed them he had seen their deed at the courthouse and thought it unusual that two single men had taken title jointly with right of survivorship. Sundell and Tomkovich telephoned Hearn, who continued to advise them that they had received title so that if either died his interest would pass to his heirs at law rather than to the surviving grantee.

The State brought this action charging Key, Hearn, and Coffee County Abstract and Title with practicing law in violation of state statutes and judicial decisions. The practice of law is defined in Alabama at Code 1975, § 34-3-6:

"§ 34-3-6. Who may practice as attorneys.
"(a) Only such persons as are regularly licensed have authority to practice law.
"(b) For the purposes of this chapter, the practice of law is defined as follows:
"Whoever,
". . .
"(2) For a consideration, reward or pecuniary benefit, present or anticipated, direct or indirect, advises or counsels another as to secular law, or draws or procures or assists in the drawing of a paper, document or instrument affecting or relating to secular rights; ...
". . .
"is practicing law.
"(c) Nothing in this section shall be construed to prohibit any person, firm or corporation from attending to and caring for his or its own business, claims or demands, nor from preparing abstracts of title, certifying, guaranteeing or insuring titles to property, real or personal, or an interest therein, or a lien or encumbrance thereon, but any such person, firm or corporation engaged in preparing abstracts of title, certifying, guaranteeing or insuring titles to real or personal property are prohibited from preparing or drawing or procuring or assisting in the drawing or preparation of deeds, conveyances, mortgages and any paper, document or instrument affecting or relating to secular rights, which acts are hereby defined to be an act of practicing law, unless such person, firm or corporation shall have a proprietary interest in such property; however, any such person, firm or corporation so engaged in preparing abstracts of title, certifying, guaranteeing or insuring titles shall be permitted to prepare or draw or procure or assist in the drawing or preparation of simple affidavits or statements of fact to be used by such person, firm or corporation in support of its title policies, to be retained in its files and not to be recorded." (Emphasis added.)

This statute quite clearly prohibits title companies such as Coffee County Abstract and Title from "preparing or drawing or procuring or assisting in the drawing or preparation of deeds." This is exactly what the trial court enjoined Hearn and Coffee County Abstract and Title from doing, with the addition of the phrase "or filling out blanks of deeds." The addition of these words is not an expansion of the statute, but only a finding that "filling out blanks of deeds" is indistinguishable from "drawing or preparing" deeds. Coffee County Abstract and Title argues that attorneys drafted the forms of the deeds which it uses, and that the task of filling in *855 blanks is essentially clerical and does not constitute the practice of law.

This argument overlooks the fact that decisions must frequently be made regarding the information to go into the blanks, the appropriateness of particular clauses in form deeds, and, most germane to this case, the choice of which deed form to use. The fact that Hearn gave Sundell and Tomkovich title as joint tenants with right of survivorship when they wanted, and he thought he had given them, title as tenants in common, amply illustrates the rationale for limiting the preparation of legal documents to licensed attorneys.

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Bluebook (online)
445 So. 2d 852, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coffee-cty-abstract-and-title-co-v-state-ex-rel-norwood-ala-1983.