Crain v. UPLC

11 S.W.3d 328
CourtCourt of Appeals of Texas
DecidedMarch 6, 2000
Docket01-98-01010-CV
StatusPublished

This text of 11 S.W.3d 328 (Crain v. UPLC) 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
Crain v. UPLC, 11 S.W.3d 328 (Tex. Ct. App. 2000).

Opinion

11 S.W.3d 328 (1999)

Ray CRAIN and Credit Management Consulting Company, Appellants,
v.
THE UNAUTHORIZED PRACTICE OF LAW COMMITTEE OF THE SUPREME COURT OF TEXAS and Jeff Lehmann, Appellees.

No. 01-98-01010-CV.

Court of Appeals of Texas, Houston (1st Dist.).

December 23, 1999.
Rehearing Overruled March 6, 2000.

*330 Chuck Portz, Portz & Portz, Houston, for Appellants.

Robert Higgason, Law Office of Robert W. Higgason, Houston, for Appellees.

Panel consists of Chief Justice SCHNEIDER and Justices ANDELL and DUGGAN.[*]

*331 OPINION

MICHAEL H. SCHNEIDER, Chief Justice.

Appellants, Ray Crain and Credit Management Consulting Company (CMCC), appeal summary judgments rendered in favor of appellees, the Unauthorized Practice of Law Committee of the Supreme Court of Texas (UPLC) and Jeff Lehmann. The summary judgment rendered in favor of UPLC enjoins Crain and CMCC from engaging in the unauthorized practice of law. By eight points of error, Crain and CMCC challenge: (1) whether the determination that an activity constitutes the unauthorized practice of law is a question of law; (2), (3), (4) whether the preparation and filing of lien affidavits and mechanic's liens constitutes the unauthorized practice of law; (5) whether laches bars the suit brought by the UPLC; (6) whether the summary judgment based on immunity granted in favor of Lehman was proper; and (7) whether the trial court's order exceeded the motions. We affirm.

Facts and Procedural History

This case revolves around the debt collection practices of Crain (who is not an attorney) and his business, CMCC. CMCC's business practices are undisputed. CMCC collects debts related to the construction industry, as well as medical and business debts. A substantial part of CMCC's business involves the preparation, signing and filing of lien affidavits on behalf of laborers, so that mechanic's and materialmen's liens against real property can be perfected and fixed. Crain also prepares and personally signs notice letters on behalf of, and as an agent of, CMCC's clients. Crain then transmits the notices and affidavits to the parties and files or causes to be filed the affidavits in the real property records in the appropriate county. Prior to the temporary injunction entered in this case, Crain also prepared and filed releases of liens in the real property records.

As protection for the public, the Supreme Court of Texas appoints the nine members of the UPLC to investigate and prosecute persons who practice law without authorization. Drew v. Unauthorized Practice of Law Comm., 970 S.W.2d 152, 153 (Tex.App.-Austin 1998, pet. denied). In 1983, the UPLC conducted an investigation of Crain's and CMCC's business practices. No action was taken against Crain or CMCC as a result of this investigation.

However, in 1995, the UPLC investigated Crain and CMCC, determined they were engaged in the unauthorized practice of law, and filed suit to enjoin Crain and CMCC from continuing such practices. The district court granted summary judgment in favor of the UPLC permanently enjoining Crain and CMCC from: (1) engaging in any practice constituting the practice of law; (2) preparing, charging, or receiving any compensation for the preparation of legal instruments affecting real property, including a mechanic's lien, materialman's lien, release of lien, or lien affidavit and claim; (3) the continuation of any ongoing or new lien notices, release of lien preparation, lien affidavit and claim preparation or filing, and negotiations with home owners, lienees, potential lienees, and insurance companies; (4) advertising they possess the ability to collect money for claimants by the use of notices of intention to file liens or lien affidavits, or to charge or receive compensation for the preparation of any legal instrument affecting title to real property; (5) filing or preparing any instrument which affects title to real property for any person other than themselves; (6) supplying legal forms to third parties, including forms for the preparation of a mechanic's lien, materialman's lien, release of lien, or lien affidavits, and/or providing advice to third parties regarding completion or filing of such forms or documents; and (7) accepting money or consideration for performing any of the services or acts that Crain or CMCC was enjoined from doing.

CMCC brought suit against Jeffrey Lehmann, the chairman of the Houston subcommittee of the UPLC, asserting he *332 tortiously interfered with CMCC's business in the course of the UPLC investigation. The court also granted a summary judgment for Lehmann based on immunity. CMCC appeals both summary judgments. The trial court stayed a portion of the injunction pending this Court's review.

Is the Determination of Whether CMCC's Acts Constitute the Unauthorized Practice of Law a Question of Law?

In its first point of error, CMCC contends the trial court erred in granting summary judgment in favor of the UPLC because it is a question of fact whether the preparation and filing of a mechanic's lien constitutes the unauthorized practice of law. We disagree.

The unauthorized practice of law is a proper subject for summary judgment. Unauthorized Practice of Law Comm. v. Cortez, 692 S.W.2d 47, 51 (Tex.1985) (holding it was for court to decide whether activities of private immigration service agency amounted to practicing law); Fadia v. Unauthorized Practice of Law Comm., 830 S.W.2d 162, 164 (Tex.App.-Dallas 1992, writ denied) (holding trial court had authority to decide as matter of law whether Fadia's distribution of will manuals constituted unauthorized practice of law). When the activities alleged to be the practice of law are undisputed, courts have the inherent power to determine on a case-by-case basis whether those activities constitute the unauthorized practice of law. Cortez, 692 S.W.2d at 50-51; Fadia, 830 S.W.2d at 164. The trial court, therefore, had the authority to decide as a matter of law whether CMCC's practices constitute the unauthorized practice of law.

Whether the Preparation and Filing of Lien Affidavits and Mechanic's Liens Constitutes the Unauthorized Practice of Law?

Standards of Review

Summary Judgment

The summary judgment rule provides a method of summarily ending a case that involves only a question of law and no fact issues. Tex.R. Civ. P. 166a(c); Nixon v. Mr. Property Management Co., 690 S.W.2d 546, 548 (Tex.1985); Cigna Ins. Co. v. Rubalcada, 960 S.W.2d 408, 411 (Tex. App.-Houston [1st Dist.] 1998, no pet.). When, as here, both sides move for summary judgment and the trial court grants one motion and denies the other, we review the summary judgment evidence presented by both sides and determine all questions presented. Commissioners Ct. of Titus Cty. v. Agan, 940 S.W.2d 77, 81 (Tex.1997); Rubalcada, 960 S.W.2d at 411-12. We render such judgment as the trial court should have rendered. Agan, 940 S.W.2d at 81; Rubalcada, 960 S.W.2d at 411-12.

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11 S.W.3d 328, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crain-v-uplc-texapp-2000.