Detroit Bar Ass'n v. Union Guardian Trust Co.

276 N.W. 365, 282 Mich. 216, 1937 Mich. LEXIS 517
CourtMichigan Supreme Court
DecidedOctober 4, 1937
DocketDocket No. 5, Calendar No. 39,124.
StatusPublished
Cited by30 cases

This text of 276 N.W. 365 (Detroit Bar Ass'n v. Union Guardian Trust Co.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Detroit Bar Ass'n v. Union Guardian Trust Co., 276 N.W. 365, 282 Mich. 216, 1937 Mich. LEXIS 517 (Mich. 1937).

Opinion

North, J.

This is an injunction suit wherein plaintiffs seek to enjoin alleged unauthorized or unlawful practice of law by the defendant trust company, a Michigan corporation. From a decree granting injunctive relief, each party has appealed.

Concededly the defendant corporation is not licensed to practice law. Instead it is specifically prohibited by statute from doing so. In part the statute reads:

“It shall be unlawful for any corporation or voluntary association to practice or appear as an attorney at law for any person other than itself in any court in this State or before any judicial body, or to make it a business to practice as an attorney at law, for any person other than itself, in any of said courts or to hold itself out to the public as being entitled to practice law, or render or furnish legal services or advice, or to furnish attorneys or counsel or to render legal services of any kind in actions or proceedings of any nature or in any other way or manner, or in any other manner to assume to be entitled to practice law. * * * The fact that such officer, trustee, director, agent or employee (of the corporation) shall be a duly and regularly admitted attorney at law shall not be held to permit or allow any such corporation or voluntary association to do the acts prohibited herein. * * * This section shall not apply to any corporation or voluntary association lawfully engaged in a business authorized by the pro *220 visions of any existing statute. * * * But no corporation shall be permitted to render any services which cannot lawfully be rendered by a person not admitted to practice law in this State nor to solicit directly or indirectly professional employment for a lawyer.” 2 Comp. Laws 1929, § 10175.

Adjudication of the issues presented in the instant case is rendered difficult because of the lack of an exact definition of what constitutes the practice of law. In their brief, plaintiffs say:

“The determination as to what constitutes ‘practice of law’is regarded as a judicial function. * * * Even if possible, it is not practical or advisable to attempt specific definition of ‘practice of law.’ The few efforts to do so have added little to general characterization. ’ ’

The supreme court of Bhode Island has said:

“Authority to admit to the bar and to disbar necessarily carries with it power to define what constitutes the practice of the law, and to exclude unauthorized persons therefrom.” Rhode Island Bar Ass’n v. Automobile Service Ass’n, 55 R. I. 122, 130 (179 Atl. 139, 100 A. L. R. 226).

See, also, Richmond Ass’n of Credit Men v. Bar Ass’n of City of Richmond, 167 Va. 327 (189 S. E. 153); Depew v. Wichita Ass’n of Credit Men, Inc., 142 Kan. 403 (49 Pac. [2d] 1041); Creditors’ Service Corp. v. Cummings, 57 R. I. 291 (190 Atl. 2).

‘ ‘ The practice of law is difficult to define. Perhaps it does not admit of exact definition. * * * That the practice of the law is a special field reserved to lawyers duly licensed by the court, no one denies.” Rhode Island Bar Ass’n v. Automobile Service Ass’n, supra, 126.

“It would be difficult to give an all-inclusive definition of the practice of law, and we will not attempt *221 to do so.” Clark v. Austin, 340 Mo. 467 (101 S. W. [2d] 977).

“This court and other courts have always been reluctant to adopt an all-inclusive definition of the term ‘practice of law.’ ” People, ex rel. Chicago Bar Ass’n, v. Goodman, 366 Ill. 346 (8 N. E. [2d] 941).

As bearing somewhat upon this phase of the instant case it may be noted that in a decision involving illegal.practice of law we have said:

“In a case in court, determination of the steps to be taken and control of procedure and proceedings to enforce the remedy are exclusively functions of an attorney at law, where a party does not appear in his own person. 6 C. J. p. 643. * * *
‘ ‘ The rights and duties arising out of the relationship of attorney and client are not measured by the yardstick of commercial or trade transactions. The relation is purely personal. The lawyer owes to his client undivided allegiance. There is no place in the relationship for its establishment by a middleman having an interest in the res or control of the procedure.” Hightower v. Detroit Edison Co., 262 Mich. 1, 9,12 (86 A. L. R. 509).

Without giving full sanction thereto, it may be noted that other courts have expressed much broader views as to what constitutes the practice of law.

“Counsel and advice, the drawing of agreements, the organization of corporations and preparing papers connected therewith, the drafting of leg’al documents of all kinds, including wills, are activities which have long been classed as law practice. ” People v. Alfani, 227 N. Y. 334, 338 (125 N. E. 671).

“Practice of law under modern conditions consists in no small part of work performed outside of any court and having no immediate relation to proceedings in court. It embraces conveyancing, the giving of legal advice on a large variety of subjects, and the preparation and execution of legal instruments *222 covering an extensive field of business and trust relations and other affairs. Although these transactions may have no direct connection with court proceedings, they are always subject to become involved in litigation. ” Opinion of the Justices to the Senate, 289 Mass. 607, 613 (194 N. E. 313).

“It is too obvious for discussion that the practice of law is not limited to the conduct of cases in courts. According to the generally understood definition of the practice of law in this country, it embraces the preparation of pleadings and other papers incident to actions and special proceedings and the management of such actions and proceeding's on behalf of clients before judges and courts, and in addition conveyancing, the preparation of legal instruments of all kinds, and in general all advice to clients and all action taken for them in matters connected with the law. An attorney at law is one who engages in any of these branches of the practice of law.” In re Duncan, 83 S. C. 186 (65 S. E. 210, 24 L. R. A. [N. S.] 750, 18 Ann. Cas. 657).

We turn now to the specific questions presented in the instant case. Counsel stipulated that three issues were presented to the trial court for adjudication. We quote and consider them in order.

1. “That it is illegal for the defendant trust company to draft or have drafted by its attorneys or attorney, or others selected or paid by it therefor, any will or proposed form, outline or suggestion thereof; ’ ’

Formerly defendant had actively engaged in the business of drafting wills. Many of such transactions were the result of defendant’s systematic solicitation of business of this character.

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Bluebook (online)
276 N.W. 365, 282 Mich. 216, 1937 Mich. LEXIS 517, Counsel Stack Legal Research, https://law.counselstack.com/opinion/detroit-bar-assn-v-union-guardian-trust-co-mich-1937.