Cuyahoga County Bar Ass'n v. Gold Shield Inc.

369 N.E.2d 1232, 52 Ohio Misc. 105, 6 Ohio Op. 3d 319, 1975 Ohio Misc. LEXIS 122
CourtCuyahoga County Common Pleas Court
DecidedNovember 19, 1975
DocketNo. 930370
StatusPublished
Cited by1 cases

This text of 369 N.E.2d 1232 (Cuyahoga County Bar Ass'n v. Gold Shield Inc.) is published on Counsel Stack Legal Research, covering Cuyahoga County Common Pleas Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cuyahoga County Bar Ass'n v. Gold Shield Inc., 369 N.E.2d 1232, 52 Ohio Misc. 105, 6 Ohio Op. 3d 319, 1975 Ohio Misc. LEXIS 122 (Ohio Super. Ct. 1975).

Opinion

McMónágle, J.

This is an action that was originally filed by the Cnyahoga Connty Bar Association against the defendants named in the complaint. . The complaint was one asking for equitable relief by way of a permanent injunction. Subsequent to the filing of the original complaint, counterclaims and cross-claims were filed. These included the addition of new' parties by way of defendants to the cross claim. A motion to sever was granted and a trial of the issues' presented by the original complaint of the plaintiff and the answers of the original defendants was held.

The evidence in the case consisted of Exhibits 1 through 9. Their admission was stipulated by the parties. Exhibit 9 consisted of the transcript of the. proceedings before the Unauthorized Practice of Law Committee of the plaintiff, The Cuyahoga County Bar Association. This commenced on Tuesday, May 8, 1974. Briefs of the parties were .filed herein. The case was argued by counsel and submitted to the court for its decision.

It is the claim of the plaintiff herein that the defendants, Gold Shield, Inc., William T. Wuliger, Esq., Herbert B. Katz, Esq., and Sander Bubin, were engaged in the unauthorized practice of law in the respects set forth in the complaint. The prayer of the complaint is one requesting an order of this court as follows: .

* (1) That it permanently enjoin the defendants, their agents and employees and anyone acting upon their behalf from engaging in any of the improper and unauthorized activities complained of; and

(2) Whatever other relief is just and equitable.

: Gold Shield, Inc., is a duly organized and existing Ohio corporation for profit. It was incorporated op. -March 11, 1974. The defendant, William T. Wuliger, is an Ohio attorney and Chairman of the Board of Gold Shield, Inc. The defendant, Herbert B. Katz, is also an Ohio attorney and President of Gold Shield, Inc. Sander Bubin is not an attorney and has been Executive Vice President of Gold Shield, Inc. " ’ ■

The defendants, Mr. Wuliger, Mr. Katz and Mr. Bubin, had conceived a plan, for a type of group legal services; [107]*107(Mr. Wuliger having written a paper on group legal services while in law school). Gold Shield was incorporated by the defendants, Wuliger, Katz ánd Rubin,, for the, purpose of carrying such a plan into effect. The plan has been called “The Gold Shield Plan.” Under the plan,, subscribers or clients to the plan were or would be selected or procured for membership by various means, including word of mouth and other type of advertising, and should be possessed of a credit card, and pay approximately $12 to $15 per year for membership. Member lawyers.who would be made available to provide legal services for ■'subscribers were enrolled. Gold Shield had signed contracts with both BankAmericard and Master Charge. The plan provides that a current roster of member lawyers be - provided to subscribers by Gold Shield, Inc. A schedule of maximum fees has been promulgated by Gold Shield which is substantially lower than those generally charged in the ■community. Member lawyers charges to the subscriber or clients of Gold Shield, Inc., may not exceed the amount specified in the fee schedule charges made available to members. The fees for services rendered by member lawyers, to Gold Shield subscribers would be paid directly to the. Gold Shield office.. Gold Shield, Inc. would receive 10 percent of the amount of the fee (which includes both credit card and services fees) and would remit 90 percent to. the. lawyer. The amount received by Gold Shield is for payment of its services and subject to change if too much or too .little. The amount of the lawyers fees, however, is guaranteed by Gold Shield, Inc., the responsibility therefor being the. ■obligation of Gold Shield and the banks.

The evidence clearly establishes that: ...

(1) Gold Shield, Inc., is not a legal, fraternal,' or social organization, nor a labor union which might .help make legal services available at a discount to its members but. is an Ohio corporation organized and existing for profit. >

(2). Its, true and sole purpose is to arrange, to' make legal services available at a discount to those who pay an-mual dues, to the, corporation. „. .

[108]*108:($} Meihber lawyers mast agree to givé something of value — legal services at a discount — to secure employment by a client.

(4) Compensation for lawyers’ legal services must be by a credit card charge arrangement or contract with publicity directed to that end and without prior approval in writing of siieh credit card contract or arrangement of an established bar association having some jurisdiction over the professional ethics of attorneys involved.1 :

(5) Only lawyers approved by Cold Shield, Inc. — not all qualified lawyers — may be the beneficiaries of the credit card arrangement.

(6) Publicity is given as to the providing of legal services and which publicity is not subject to bar association approval, but of Cold Shield, Inc., and. is for the purpose of channeling business to particular lawyers.

(7) The plan involves advertising of legal services in the form of promoting the legal service plan of maldng legal services available at a discount; such advertising is by the publication of a list of attorneys who are available to provide all types of legal services.

(8) The providing, recommending and, maldng legal services available at a discount is not incidental to the principal services of the organization but actually is the sole and only purpose of the corporation and is for the purpose of generating corporation profits..

. , (9) The corporation, Cold Shield, Inc., constitutes an intermediary between the lawyer and client with responsibility by the lawyer to Cold Shield. , 1

The alleged unauthorized activities allegedly engaged in by the said defendants are as follows:

(a) Said defendants caused advertisements soliciting law business and clients in newspapers;

(b) Have solicited persons (clients) and attorneys for the .purpose of bringing them together in ah attorney-client relationship;

(c) Have prepared and caused to be published a fee schedule;

(d) Have actively sought attorneys and entered into [109]*109contracts with them to perform unauthorized services; and

(e) Have derived or attempted to:derive income which constituted fee splitting through the device of a corporation.

The Gold Shield Plan had not been registered with the Supreme Court of Ohio.

It is the contention of the plaintiff that because of the said alleged activities of the defendants, Gold Shield, Inc., William T. Wuliger, Herbert E. Katz, and Sander Eubin, that it is entitled to the decree prayed for against the said defendants.

It is also the contention of the plaintiff herein that it is entitled to the relief prayed for against Mr. Wuliger and Mr. Katz as attorneys because of their participating in a plan to provide group legal services which had not been registered with the Supreme Court of Ohio and that such participation is violative of the Code of Professional Eesponsibility.

DE 2-103(D)(6) provides as follows:

“No attorney shall participate in a plan which provides group legal services which has not been registered as set forth herein.

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Bluebook (online)
369 N.E.2d 1232, 52 Ohio Misc. 105, 6 Ohio Op. 3d 319, 1975 Ohio Misc. LEXIS 122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cuyahoga-county-bar-assn-v-gold-shield-inc-ohctcomplcuyaho-1975.