Smith v. Illinois Adjustment Finance Co.

63 N.E.2d 264, 326 Ill. App. 654, 1945 Ill. App. LEXIS 384
CourtAppellate Court of Illinois
DecidedOctober 22, 1945
DocketGen. No. 10,012
StatusPublished
Cited by19 cases

This text of 63 N.E.2d 264 (Smith v. Illinois Adjustment Finance Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Illinois Adjustment Finance Co., 63 N.E.2d 264, 326 Ill. App. 654, 1945 Ill. App. LEXIS 384 (Ill. Ct. App. 1945).

Opinion

Mr. Justice Wolfe

delivered the opinion of the court.

In October 1943, Lawrence A. Smith, plaintiff, filed his complaint in the circuit court of Carroll county against the defendants, Illinois Adjustment Finance Co., an Illinois corporation; H. J. Haithcox, alias Henry J. Haithcox; E. T. Hirst; and Odile Bolinger, alias O. E. Bolinger. Said complaint alleges that plaintiff is, and since October 1931, has been, duly admitted and licensed to practice law in the State of Illinois; that by virtue of such license and franchise, plaintiff has during said period of time practiced, and now practices, law in this State; that for more than six years just past plaintiff has maintained, and now maintains, an office in the City of Savanna, Illinois, for the purpose of practicing law. As a result of his individual efforts and activity during said period of time as such attorney, plaintiff now has a law practice of considerable value to him, from which he enjoys and derives compensation and income.

Said complaint further' alleges that the defendant, Illinois Adjustment Finance Co., is, and for more than 15 years has been, an Illinois corporation engaged in the business commonly known as a “collection agency,” with an office in Freeport, Illinois, and that it conducts and operates said “collection agencies” in the counties of Stephenson and Carroll and other parts of the State of Illinois; that the other defendants herein are officers, employees and agents of said defendant corporation in conducting and operating said “collection agency”; that none of the defendants has ever been admitted or licensed to practice law in the State of Illinois.

Said complaint further alleges that said defendants have for several years last past, in connection with the operation of said “collection agency,” unlawfully engaged in, and yet unlawfully engage in, the practice of law in said Stephenson and Carroll counties and other parts of the State, and have held, and now hold, themselves out to the public in said counties and other parts of the State of Illinois, as qualified to practice law in this State. Said complaint then sets forth numerous acts of said defendants constituting the unlawful practice of law. The complaint alleges that the Supreme Court of the State of Illinois, under the provisions of the Constitution of the State, has sole charge of the admission and enrollment of attorneys to practice law in this State, and also has the control and discipline of those persons whom it admits to the practice of law in the State of Illinois, and that when attorneys are admitted by the Supreme Court to practice law in this State, such attorneys become and are thereupon and thereafter officers of the various courts of the State of Illinois, and are properly entitled to assist and aid the courts of this State in the administration of justice therein.

Said complaint further alleges that - the right to practice law as a duly licensed attorney at law in the State of Illinois is a valuable franchise and is so considered and esteemed by the plaintiff herein, and that he is responsible to the Supreme Court of said State for his conduct and general practice, while persons practicing law in the State of Illinois without being duly licensed so to do, such as the defendants herein, have no right of franchise and are not responsible for their conduct as officers of the court, to the Supreme Court of the State of Illinois, nor to any court of the State.

In said complaint plaintiff prays for a permanent injunction perpetually and permanently enjoining and restraining said defendants, their officers, employees and agents, from practicing law in the State of Illinois in any manner or form whatsoever.

The defendants entered a motion to dismiss the complaint, which is as follows: “Now come the defendants, The Illinois Adjustment Finance Co., a corporation, H. J. Haithcox, E. T. Hirst and Odile Rolinger, by Eckert & Eckert and Wesley A. Eberle, their attorneys, and move this Court to dismiss the complaint of the plaintiff, Lawrence A. Smith, filed herein for injunction on the ground that: (1) That the plaintiff, Lawrence A. Smith, has an adequate remedy at law; (2) that there is no showing and no allegation of sufficient interest, injury or damage to the plaintiff, Lawrence A. Smith, in the subject matter of said cause to entitle him to the relief sought; (3) that the complaint of the plaintiff herein does not state or set up a cause of action against the said defendants.”

Hearing was had upon this motion, and the court entered an order sustaining the motion to dismiss the complaint, said order being as follows: “This cause having heretofore been heard by the Court and taken under advisement, and the Court being fully advised, it is ordered that the motion to strike complaint is sustained.” From this order of dismissal, the plaintiff, Lawrence A. Smith, has perfected an appeal to this court.

The Illinois State Bar Association, through its attorney, Fred A. Gariepy, and chairman of the committee on the unauthorized practice of law, and the Chicago Bar Association, by its attorney and chairman of the committee on unauthorized practices of law, were granted leave to file a brief and argument as amicus curiae to assist the court in arriving at the proper conclusion in this case.

The first error assigned by the appellant is that the trial court erred in sustaining the defendants’ motion to dismiss the complaint, since it does state a good cause of action against the defendants. The appellees insist that this question was not decided by the trial court, and therefore is not an issue in the Appellate Court. The order of dismissal of the trial court does not state on what grounds the opinion was based, but we will have to assume that the court considered all points raised by the pleadings in the motion to dismiss. The third point of the motion, as before stated, being that the complaint does not state or set up a cause of action against the defendant. We agree with the appellant that this point was necessarily raised in the trial court. It is urged in the appellees’ brief that the petition does hot state facts, but conclusions of the pleader. Some of the criticism, no doubt, is well taken, but an examination of the petition discloses that there are enough facts well pleaded, if there is proof to sustain them, to prove that the defendants are guilty of the' unauthorized practice of law. It is our conclusion that the complaint does state a good cause of action.

The next point raised is, that the plaintiff has an adequate remedy at law. They cite three cases as sustaining this contention, namely, People v. Universal Chiropractors’ Ass’n, 302 Ill. 228, Seager v. Kankakee County, 102 Ill. 669 and Wollitzer v. National Title Guaranty Co., 148 Misc. 529, 226 N. Y. S. 184. It is claimed by the appellees that because the corporation could' be subjected to a criminal prosecution for the unauthorized practice of law, and that quo warranto proceedings could be filed against the defendants, the plaintiff does have a complete and adequate remedy at law to stop the unauthorized practice of law by the appellees. The decisions of the courts do not sustain this contention. If the injunction in this case is ordered, it would not prevent the state’s attorney from prosecuting the appellees for the illegal practice of law, or would not prevent him from filing a quo warranto proceeding, but those would be additional remedies to stop the unauthorized practice of law.

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Bluebook (online)
63 N.E.2d 264, 326 Ill. App. 654, 1945 Ill. App. LEXIS 384, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-illinois-adjustment-finance-co-illappct-1945.