Dworken v. Department House Owners Ass'n

28 Ohio N.P. (n.s.) 115, 1930 Ohio Misc. LEXIS 1207
CourtCuyahoga County Common Pleas Court
DecidedJune 26, 1930
StatusPublished
Cited by2 cases

This text of 28 Ohio N.P. (n.s.) 115 (Dworken v. Department House Owners Ass'n) 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
Dworken v. Department House Owners Ass'n, 28 Ohio N.P. (n.s.) 115, 1930 Ohio Misc. LEXIS 1207 (Ohio Super. Ct. 1930).

Opinion

Overmyer, J.

(of Sandusky County sitting by designation.)

This action is brought by the plaintiff, an attorney at law of this city, represented by some twenty lawyers who enter their appearance as counsel for the plaintiff, against the defendant Apartment House Owners’ Association of this city, a corporation organized not for profit, and the relief sought is an injunction “to restrain the defendant association, its officers, agents, directors, trustees and attorneys from advertising that it maintains a legal department for the benefit of its members and others, and from maintaining a legal department or carrying on the practice of law through itself, its officers, agents, directors, trustees or attorneys.”

The petition alleges that the defendant corporation has for a long time, “illegally and in violation of law and its articles of incorporation, advertised that it has a legal department for the use of others and that it maintains a law department and that it practices law by hiring attorneys at law to carry on the work of the practice of law.”

The answer of the defendant admits that it is a corporation duly organized under the laws of Ohio, and denies all other allegations of the petition.

[117]*117The cause was submitted to the court on the pleadings and the evidence, and counsel have filed elaborate and helpful briefs.

After the cause was submitted, defendant filed a general demurrer to the petition without leave, but no separate hearing has been had thereon. The court’s views on the cause submitted, as herein expressed, carry with them disposition of the demurrer.

It is admitted that the plaintiff is an attorney and counselor at law, duly admitted to practice, and has so practiced for more than seventeen years, and it is contended by the plaintiff:

1st. That as an attorney at law he has an exclusive franchise as one of a class to practice law, a franchise granted by the Supreme Court of Ohio only to persons, men and women, who can comply with the rules prescribed by the Supreme Court as to educational and moral qualifications, and pass the necessary examination held under authority of the Supreme Court as provided by law.

2d. That laymen or corporations cannot practice law either directly or indirectly.

3d. That an injunction can be issued by a court of competent jurisdiction to restrain a corporation from interfering with his franchise rights.

4th. That courts of equity have jurisdiction by injunction to protect a franchise from unlawful invasion or disturbance.

An attorney at law is the owner and holder of a franchise. The right to practice law is a special personal franchise, limited in Ohio to persons of good moral character, with special qualifications ascertained and certified after study and examination. The right or license to practice law confers a franchise as distinguished from an office.

See 6 Corpus Juris, 568-26 Corpus Juris, 1018; 190 Federal, (pages 974-1015 opinion) ; 4 Wall., 71 U. S., 333; Thornton on Attorneys at Law, Yol. 1, page 22.

Can a court of equity, by injunction, protect the owner and holder of a personal franchise from unlawful invasion or interference?

[118]*118The defendant urges that injunction does not lie, and that the plaintiffs’ remedy is quo warranto..

In the case at bar the charter of the defendant company in the purpose clause of its articles of incorporation, provides that the Association is formed “to promote the welfare of its members in the ownership, maintenance and conduct of apartment houses, stores and suites; to establish a bureau of information and service to its members; and to aid and assist in the reduction of operating expenses of said buildings; and to furnish such legal service to its members as the Association may deem advisable, and to do all things necessary and incidental thereto.”

That the Secretary of State had no authority to issue a charter for a corporation with one of its purposes and objects such as is represented in the language italisized, there can be no doubt or dispute.

. Section 8623-3 General Code provides, “A corporation for profit may be formed hereunder for any purpose or purposes other than for carrying on the practice of awy profession,” etc.

Section 8623-97 provides for the incorporation of corporations not for profit, and the italicized inhibition above does not appear in this section, and the defendant argues that there is no inhibition against forming a corporation not for profit with a purpose clause authorizing the practice of law. This argument answers itself. Under what conceivable conditions or circumstances would a band of men or women associate themselves together into a corporation not for profit for the purpose of practicing law? It is the opinion of this court that in Ohio no corporation can practice law, and that only natural persons, men and women who have complied with the rules and regulations prescribed by the Supreme Court and have been duly admitted to practice by that court after an examination, can practice law in this state.

The defendant corporation is alleged to be a corporation not for profit and was so incorporated, and the evidence discloses a membership of about 1,250, and that each member pays dues ranging from $10 per year to $200 [119]*119per year, rated according to suites in the respective apartments. At an average of $50 per year its income would be $62,500, or at $75 it would amount to $93,750. It is not shown what is done with this income, although the president testified he receives no. salary. Whether a surplus is left after paying operating expenses was not shown.

Now if a corporation cannot be formed in Ohio for the purpose of practicing law directly, it cannot practice law indirectly by employing lawyers to practice for it, as that would be an evasion which the law would not tolerate.

If the defendant corporation has been practicing law, it has done so without any legal authority given it by its charter, for such authority cannot be given, and if the defendant has practiced law without this authority an action in quo warranto against the company would not of necessity bring the relief plaintiff prays for, because some of the purposes for which the defendant company was chartered are entirely legal. In other words, the defendant now says it has not been practicing law under this charter. If quo tvarranto would result in that clause being stricken from the charter, how would that prevent the defendant company from doing what they are now doing, when they say that does not constitute the practice of law ?

The court is of opinion that injunction lies in this case, and if the evidence warrants, the injunction should be allowed.

See 1 Ohio State, 592; 102 O. S., 524; 84 Ala., 115.

In the Alabama case the court say:

“An injunction can be issued by a court to restrain a corporation from interfering with the franchise rights of an individual.
“Courts of equity have jurisdiction by injunction to protect a franchise from unlawful invasion or disturbance and will exercise such jurisdiction to secure the enjoyment of a franchise privilege, or to protect against an invasion of such franchise.”

In 1 O. S., 592 the court say:

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Related

State Bar v. Guardian Abstract & Title Co.
575 P.2d 943 (New Mexico Supreme Court, 1978)
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148 Misc. 529 (New York Supreme Court, 1933)

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Bluebook (online)
28 Ohio N.P. (n.s.) 115, 1930 Ohio Misc. LEXIS 1207, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dworken-v-department-house-owners-assn-ohctcomplcuyaho-1930.