In re Maclub of America, Inc.

3 N.E.2d 272, 295 Mass. 45, 105 A.L.R. 1360, 1936 Mass. LEXIS 1099
CourtMassachusetts Supreme Judicial Court
DecidedJuly 1, 1936
StatusPublished
Cited by17 cases

This text of 3 N.E.2d 272 (In re Maclub of America, Inc.) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Maclub of America, Inc., 3 N.E.2d 272, 295 Mass. 45, 105 A.L.R. 1360, 1936 Mass. LEXIS 1099 (Mass. 1936).

Opinion

Rugg, C.J.

This is a petition by the Attorney General alleging that the respondent is engaged illegally in the [46]*46practice of law. The case was heard by a single justice, who found the material facts in substance to be these: The respondent is a corporation organized under the laws of this Commonwealth with a capital of $25,000. It sells “memberships,” in reality contracts, for a consideration of $12 for the first year and $10 for each year renewed thereafter, to persons belonging to the Masonic fraternity. These contracts give to the members various benefits connected with the operation of automobiles in this and other States. Bach member receives a “first aid kit” for use by a person injured by accident, an automobile map, and a folder giving information helpful in travelling. Each member also receives, nine times a year, a magazine entitled “Maclub Friends Along The Road Magazine,” containing lists of approved hotels and restaurants and of “official service stations and dealers” with a star opposite the names of those service stations which may be called upon to render roadside service in case an automobile is disabled. To a limited extent the respondent assumes the service charges.

One benefit to members, described by the respondent in its printed matter as “one vitally important phase of Maclub service,” is the “Maclub legal defence.” The respondent agrees to furnish at its expense “consultations and advice in any case pertaining to the use of the automobile, legal defence of members in any civil suit arising from the use of a member’s automobile that may involve property damage, legal defence of claims for personal injuries where members are not insured,” and “legal defence in the courts of members charged with violating any automobile law, any city ordinance or any police regulation, including alleged manslaughter.” A list of recommended attorneys (who pay nothing for the listing) is published in the magazine at intervals. This list of names of recommended attorneys was secured by the legal department of the respondent corporation. Some at least of the recommended-attorneys consented to being on the list. The list contains the names of attorneys in almost every important city and town in the New England States. Members are at liberty to employ other attorneys, but are urged to employ those on the list. The respondent [47]*47has lived up to its contracts with respect to “Maclub legal defence.”

The amount paid for services of attorneys was about $500 in 1933 and less than $40 in each of the two following years. There are about nine hundred members of the respondent, of whom about four hundred live in this Commonwealth. When an attorney is retained by a member, the respondent knows nothing of it until the bill for services is presented. It takes no part in the management of the case and it has no salaried attorney. The final statement of the single "justice is that, unless these facts “require the conclusion as matter of law that the method of doing business adopted by the respondent amounts to the illegal practice of law, I do not draw from them such conclusion as matter of fact. I report the case for the determination by the full court, without further decision.”

The respondent does not contend that it can legally practise law. Opinion of the Justices, 289 Mass. 607, 612-614. It does not challenge the jurisdiction of the court. It was enacted by St. 1935, c. 346, § 1, amending G. L. (Ter. Ed.) c. 221, § 46, that “No corporation . . . shall practice or appear as an attorney for any person other than itself in any court in the commonwealth or before any judicial body or hold itself out to the public or advertise as being entitled to practice law ... or give legal advice in matters not relating to its lawful business, or practice law, or hold itself out in any manner as being entitled to do any of the foregoing acts, by or through any person orally or by advertisement, letter or circular . . . .” Penalties are established for violation of this section. By § 2 of said c. 346 there were added to said c. 221, §§ 46A and 46B. It was provided by said § 46A (with exceptions not here material) that no individual other than a member of the bar “shall practice law, or, by word, sign, letter, advertisement or otherwise, hold himself out as authorized, entitled, competent, qualified or able to practice law.” By said § 46B jurisdiction was conferred in equity upon petition of the Attorney General among others to restrain violations of said §§46 and 46A.

The present proceeding was instituted subsequently to [48]*48the operative date of said c. 346. The provisions of its first section, so far as concerns the facts shown on this record, do not enlarge the provisions of the common law touching the practice of law. Opinion of the Justices, 279 Mass. 607. Matter of Cohen, 261 Mass. 484. Opinion of the Justices, 289 Mass. 607. In view of said c. 346, § 2, it is not necessary to determine what remedies might be open to the petitioner apart from this statute.

The terms of the' contract between the respondent and its members bound the respondent in plain terms, for the consideration paid it, to furnish them services which can be rendered by members of the bar alone and which require the practice of law. Comprised within the sweep of its obligations touching liabilities arising from the use of an automobile were consultations and advice, legal defence of members in actions involving property damage, legal defence of claims for personal injuries against which members were not insured and legal defence in the courts of members charged with violation of any automobile law including manslaughter. This contractual obligation embraced every variety of litigation, whether civil or criminal, arising from ownership and operation of an automobile. To provide legal defence of this character naturally demands investigation of relevant facts, ascertainment of available evidence, and determination of method of trial. There is no ambiguity about the nature and identity of the agreement made and the responsibilities assumed by the respondent. Its contractual duty could be met only by members of the bar in the practice of their profession. This feature of the agreement made by the respondent is stressed in its advertisements. The use of commercial methods of advertising for attracting those who may require the services of members of the bar for the protection of their rights is contrary to the standards required of members of the bar and incompatible with their duty to the court. Matter of Cohen, 261 Mass. 484. The respondent plainly violated this fundamental conception as to the practice of law. It is inherent in the nature of an obligation like that assumed by the respondent that the functions [49]*49of courts are involved and that the services of members of the bar of adequate learning and skill must be provided. The publication of the list of recommended attorneys in conjunction with the other advertising of the respondent, and its plan of doing business, are in substance and effect representations that it deals at wholesale in the kind of legal services which it has contracted to provide to its individual members. This list of recommended attorneys was prepared by the legal department of the respondent. The establishment of such a department in order to facilitate providing legal services of the nature here described, free of expense to its members by virtue of its contract, is not within the legitimate sphere of corporate activity.

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Bluebook (online)
3 N.E.2d 272, 295 Mass. 45, 105 A.L.R. 1360, 1936 Mass. LEXIS 1099, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-maclub-of-america-inc-mass-1936.