Georgia Bar Ass'n v. Lawyers Title Insurance

151 S.E.2d 718, 222 Ga. 657
CourtSupreme Court of Georgia
DecidedOctober 6, 1966
Docket23613, 23614
StatusPublished
Cited by12 cases

This text of 151 S.E.2d 718 (Georgia Bar Ass'n v. Lawyers Title Insurance) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Georgia Bar Ass'n v. Lawyers Title Insurance, 151 S.E.2d 718, 222 Ga. 657 (Ga. 1966).

Opinions

Cook, Justice.

In the enumeration of errors of the Georgia Bar Association it is contended with reference to the constitutionality of the legislative Acts defining the practice of law as follows: “It is the function and responsibility of the judiciary and not the legislature to define what constitutes the unauthorized practice of law. In these circumstances, the Acts of the General Assembly (Georgia Laws 1931, pages 191-194; Georgia Laws 1937, pages 753-754) defining the practice of law and particularly that part which authorized title companies to: ‘prepare such papers as it thinks proper, or necessary, in connection with a title which it proposes to insure, in order, in its opinion, for it to be willing to insure such title, where no charge is made by it for such papers,’ is unconstitutional as being in violation of Article V [VI?], § 1, Paragraph 1 of the Constitution (Code § 2-3601).”

Art. VI, Sec. I, Par. I of the Constitution (Code Ann. § 2-3601) provides: “The judicial powers of this State shall be vested in a Supreme Court, a Court of Appeals, Superior Courts, Courts of Ordinary, Justices of the Peace, Notaries Public who ' are ex-officio Justices of the Peace, and such other Courts as have been or may be established by law.”

The appellants have cited numerous cases from other states dealing with the inherent powers of the judiciary to regulate the practice of law. We have read these cases with much interest, and we concur in the general view expressed in those cases that the judiciary can not be circumscribed or restricted in the performance of these duties.

Historically, in this state, the General Assembly has enacted legislation appropriate and essential in aiding the judiciary in the discharge of these duties, and this court has recognized the right of the General Assembly to enact these statutes. In Ex Parte Hale, 145 Ga. 350 (89 SE 216), it was said: “The question of eligibility for admission to the bar has been the subject-matter of legislation in this State for more than a century. In [660]*660sections 65 and 66 of the judiciary act approved December 23, 1789 (Watkins’ Digest of Georgia Laws, 389), there were provisions on this subject, and earlier Acts with reference thereto were mentioned and repealed.” As early as 1812 (Cobb, 578) legislation was enacted dealing with the disbarment of attorneys. In 1963 (Ga. L. 1963, pp. 70-72) the General Assembly passed an Act authorizing this court to establish the State Bar of Georgia, and on December 6, 1963, this court entered an order creating the State Bar of Georgia pursuant to that Act. Minutes of Supreme Court of Georgia, Vol. 34, p. 107 et seq.

The first statutory provision defining the practice of law in this state was enacted August 7,1931 (Ga. L. 1931, pp. 191, 194). Counsel have cited us no case by this court, and we have found none, deciding the question of whether the General Assembly was exercising a judicial function in thus defining the practice of law. The following cases, dealing with the definition of the practice of law, were all by a divided court: Atlanta Title &c. Co. v. Boykin, 172 Ga. 437 (157 SE 455); Boykin v. Hopkins, 174 Ga. 511 (162 SE 796); Sharp-Boylston Co. v. Haldane, 182 Ga. 833 (187 SE 68); Gazan v. Heery, 183 Ga. 30 (187 SE 371, 106 ALR 498).

In view of the historical recognition by this court of the right of the legislative branch of government to enact legislation in aid of the judiciary in the performance of its functions, we hold that the statute under attack, defining the practice of law, is not a denial of the constitutional powers of the judicial branch of government, and the trial judge correctly so held.

The remaining assignments of error, on both the main appeal and the cross appeal, all relate to the question of whether the evidence showed any activities of Lawyers Title Insurance Corporation in violation of the Georgia statute defining the practice of law.

The entire evidence in the case was given by a retired officer and present officers or employees of Lawyers Title Insurance Corporation. It appeared from the evidence that the policy of Lawyers Title Insurance Corporation from its incorporation had been to co-operate with lawyers and encourage the employment of lawyers by persons desiring title insurance through the cor[661]*661poration. Outside of the Atlanta area the corporation issues policies of title insurance only on certificates of title furnished by lawyers not in the regular employ of the corporation, who have either applied for title insurance for a client, or have been employed by the corporation to examine the title to property of a customer of the corporation seeking title insurance. In the Atlanta area the corporation maintains a title plant and can determine for itself, without the services of an independent lawyer, the risk involved in insuring a particular title. If a person in the Atlanta area does not wish to be represented by a lawyer, the corporation may determine the insurability of the title through its employees who are lawyers, and it is this type of business that is referred to as “walk-in business.” The evidence showed that this business constituted a very small part of the business of the corporation. In these instances the corporation charges the customer the amount suggested by the Atlanta Bar Association as the minimum title fee to be charged by a lawyer in examining a title and having it insured.

The trial judge, the Honorable O. L. Long, held that the evidence adduced on the trial does not reveal any activities of the title corporation prohibited by the law of Georgia, or violative of the applicable statutes of the State of Georgia, except the so-called “walk-in” business and the advertisements encouraging it. His order declared the activities of the corporation violating Georgia statutes to be as follows:

“1. That the plaintiff, by and through its advertisements, is holding itself out to the public as being authorized to render legal services and advice in the handling and closing of real estate transactions between applicants for title insurance and third persons;
“2. Advertising that the employment of an attorney is not necessary, thus leading the public to believe that the plaintiff is engaged in the business of conveyancing; preparation of legal instruments; and the rendering of opinions as to the validity or invalidity of titles to real and personal property, in addition to insuring titles to real property.
“3. Advertising that the fees and charges for such services are the same as would be charged by an attorney, and in pur[662]*662suance of such advertisements, where no attorney is employed, handling and closing such real estate transactions and arranging its charges for title insurance and for the examination of records of titles to real property in such manner as to effectively include a charge for rendering opinions as to the validity or invalidity of titles to real property and for the preparation of legal instruments in such transactions. This result, under the evidence, being accomplished by charging, in accordance with an alleged agreement with the Atlanta Bar Association, the same total fee, including the title insurance premium, as would have been charged under Atlanta Bar Association rates had an attorney been employed in the handling and-closing of such transaction.”

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In Re Upl Advisory Opinion 2003-2
588 S.E.2d 741 (Supreme Court of Georgia, 2003)
United States v. Allen
536 F. Supp. 222 (M.D. Georgia, 1982)
Hagan & Van Camp, P.S. v. Kassler Escrow, Inc.
635 P.2d 730 (Washington Supreme Court, 1981)
Huber v. State
216 S.E.2d 73 (Supreme Court of Georgia, 1975)
Dixon v. Georgia Indigent Legal Services, Inc.
388 F. Supp. 1156 (S.D. Georgia, 1975)
Sams v. Olah
169 S.E.2d 790 (Supreme Court of Georgia, 1969)
Wallace v. Wallace
166 S.E.2d 718 (Supreme Court of Georgia, 1969)
Georgia Bar Ass'n v. Lawyers Title Insurance
151 S.E.2d 718 (Supreme Court of Georgia, 1966)

Cite This Page — Counsel Stack

Bluebook (online)
151 S.E.2d 718, 222 Ga. 657, Counsel Stack Legal Research, https://law.counselstack.com/opinion/georgia-bar-assn-v-lawyers-title-insurance-ga-1966.