State Bar v. Guardian Abstract & Title Co.

575 P.2d 943, 91 N.M. 434
CourtNew Mexico Supreme Court
DecidedMarch 14, 1978
Docket11213
StatusPublished
Cited by19 cases

This text of 575 P.2d 943 (State Bar v. Guardian Abstract & Title Co.) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Bar v. Guardian Abstract & Title Co., 575 P.2d 943, 91 N.M. 434 (N.M. 1978).

Opinion

OPINION

EASLEY, Justice.

The State Bar Association, the San Juan County Bar Association, a committee of the San Juan County Bar and three lawyers as plaintiffs-appellees (collectively designated herein as State Bar) brought this suit to enjoin Guardian Abstract & Title Company, Inc. and San Juan County Abstract and Title Company, defendants-appellants (hereinafter Guardian Abstract) from engaging in the unauthorized practice of law. The District Court of San Juan County found for the State Bar and issued an injunction against Guardian Abstract. Guardian Abstract appeals. We reverse on the issue of filling in the forms and affirm as to the issue of giving legal advice.

It is claimed by Guardian Abstract that none of the plaintiffs is properly a party to the action. The principal question, however, is whether Guardian Abstract’s longstanding practice, in closing real estate sales or loan transactions, of using non-lawyers to fill in the blanks on standard printed or retyped forms of deeds and several other instruments constitutes the unauthorized practice of law.

Guardian Abstract adduced testimony that abstract and title companies in San Juan County handled approximately ninety percent of the real estate loan closings in that county at the time of trial and that they have been performing the acts complained of for approximately twenty years. It was further claimed by Guardian Abstract that the Bar Association knew for a period of at least sixteen years that Guardian Abstract and others had been performing the same services that the Bar Association now asserts are unauthorized.

Guardian Abstract states that, in order to close the loans, it is necessary for them to fill in the printed forms; that the company does not charge for this service; that they do not advertise or hold themselves out as being capable of filling in form instruments or giving legal advice; that they handle the closing of real estate sales only as incident to the insuring of title to the property; that the title companies are guided by a code of ethics; and that they fill in the blanks on instruments because it is faster, more efficient and less expense for the parties than using attorneys to fill in the blanks. They allege that the attorneys at times are slow in preparing instruments; that the title companies do not give legal advice; and that attorneys are seldom present to answer questions by the parties to the sale, even though the attorneys make up the instruments. Guardian Abstract denies giving any legal advice about joint-tenancy deeds and asserts that if a question is asked about the use of the form, Guardian Abstract simply advises the person that if one party dies, the other party takes the realty or, in the alternative, Guardian Abstract refers the party to the definition in the statutes. Guardian Abstract calls attention to the fact that the State Bar and the Realtors Association of New Mexico entered into a statement of principles on June 26, 1957, in which the State Bar conceded that realtors could fill in the identical forms they now contend the title companies cannot fill in.

They claim that neither the plaintiffs nor the public have been, or will be, irreparably harmed by the activities of Guardian Abstract and other title companies.

On the other hand, the State Bar contends that Guardian Abstract and other title companies, by selecting the forms to be used and preparing them, necessarily judge the legal sufficiency of the instruments to accomplish the wishes of the parties and that their use of judgment constitutes the practice of law.

Proper Parties to Bring Action

Guardian Abstract has raised numerous objections directed to the authority and the standing of the various plaintiffs to bring this suit. We do not attempt to answer all the issues raised, considering the disposition we make of the case.

There are a myriad of cases, annotations, law review articles and text materials relating to who may properly bring suits to enjoin the unauthorized practice of law by lay persons. It would unduly lengthen this opinion to analyze all the various principles of law and the varied ways in which the courts have applied them.

Sections 18-1-2, et seq., N.M.S.A. 1953 recognize the existence of a state bar. Section 18-1-6, N.M.S.A. 1953 says that the Board of Bar Commissioners has “the power to make and enforce rules generally for the control and regulation of the board and of the state bar.”

Rule 3 [§ 18-1-6, N.M.S.A. 1953, Rules Governing the Committee on Unauthorized Practice of Law, Board of Bar Commissioners of the State Bar of New Mexico, Rule 3] states that the Unauthorized Practice Committee “may institute and prosecute suits to * * * prevent the unauthorized practice of the law.” If the state bar can delegate authority to the committee to bring suit it must first have the power to do so itself.

As used in the statute, the state bar is a generic term referring to that group of attorneys who have been admitted to practice before the courts of this state. An integrated state bar, such as ours, comes into being by the Supreme Court’s action in admitting the attorneys to practice and needs no separate statutory authorization to create it.

A state bar, even though it is not a corporate “person,” may have conferred upon it by statute the power to bring suits to prevent the unauthorized practice of law to protect both itself and the public. Our statutes creating the Board of Bar Commissioners and giving it power to “make and enforce” rules “generally for the control and regulation of * * * the state bar,” § 18-1-6, supra, must necessarily give it the power to seek the court’s help to prevent the unauthorized practice of law. Otherwise, it would have no way to control the authorized practice of law. In re Baker, 8 N.J. 321, 85 A.2d 505, 511-12 (1951); Lamb v. Whitaker, 171 Tenn. 485, 105 S.W.2d 105 (1937). We read the words “control * * of the state bar” liberally in order to give some reasonable meaning to § 18-1-6. It makes little sense to create a commission with the power to “determine and prescribe by rules the qualifications and requirements for admission to the practice of law” and the power to “enforce” those rules and then say the commission is not empowered to seek the court’s help to enjoin those who ignore and violate those rules.

The Board of Bar Commissioners correctly interpreted the mandate of § 18-1-6 when it created the Committee on Unauthorized Practice of Law and, by rule, gave it the power to “institute and prosecute suits * * * to suppress, prohibit, or prevent the unauthorized practice of the law.” Unauthorized Practice Rule 3, supra.

The courts have broadly construed state bar acts, recognizing state bars as essentially public institutions and generally allowing the organizations to maintain suits in equity. It appears quite obvious that the integrated bar composed of all attorneys within the state, is the best informed, most responsible, and most interested party to initiate these actions. Local bar associations are also fully informed and properly qualified parties to bring such suits to guard against unauthorized practice.

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Cite This Page — Counsel Stack

Bluebook (online)
575 P.2d 943, 91 N.M. 434, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-bar-v-guardian-abstract-title-co-nm-1978.