Steer & Adair v. Land Title Guarantee & Trust Co.

113 N.E.2d 763, 65 Ohio Law. Abs. 33, 1953 Ohio Misc. LEXIS 371
CourtCourt of Common Pleas of Ohio, Franklin County, Civil Division
DecidedMay 19, 1953
DocketNo. 185644
StatusPublished
Cited by7 cases

This text of 113 N.E.2d 763 (Steer & Adair v. Land Title Guarantee & Trust Co.) is published on Counsel Stack Legal Research, covering Court of Common Pleas of Ohio, Franklin County, Civil Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Steer & Adair v. Land Title Guarantee & Trust Co., 113 N.E.2d 763, 65 Ohio Law. Abs. 33, 1953 Ohio Misc. LEXIS 371 (Ohio Super. Ct. 1953).

Opinion

[34]*34OPINION

By HARTER. J.

LAND TITLE GUARANTEE AND TRUST COMPANY CONTRACT FOR FURNISHING OF “TITLE SERVICES” TO TURNPIKE COMMISSION DECLARED TO BE VOID AS UNAUTHORIZED PRACTICE OF LAW BY A CORPORATION

By a decision in a mandamus action, rendered July 9, 1952, the Supreme Court of Ohio, in the case of State, ex rel. Ohio Turnpike Commission v. Allen, Secretary-Treasurer of the Ohio Turnpike Commission, 158 Oh St, 168, resolved all of the legal problems which were then impeding the construction of the Ohio Turnpike across northern Ohio, excepting one. This case involves that excepted problem.

The nature of the problem now being considered (and the one which the Supreme Court did not in their case attempt to resolve) is succinctly stated by the Supreme Court in their opinion, as follows, page 178:

“Finally, the respondent contends that the commission has entered into a contract with a title company to perform services that will constitute the practice of law. This, he insists, will involve an unconstitutional use of the funds of the commission. The title company is not a party to this action, and hence the court, of course, does not assume to adjudicate its rights in its absence. However, the court does hold that the commission may enter into a contract with a title company for the examination and guarantee of land titles provided that such services are limited to those defined by this court in the case of Land Title Abstract & Trust Co., v. Dworkin, 129 Oh St, 23, 193 N. E. 650.” (Emphasis added.)

Now that the Land Title Guarantee and Trust Company is properly before this court, our specific problem, in the present litigation, is whether the proviso thus expressly mentioned by the Supreme Court has been complied with in the contract (and practices thereunder) which the Ohio Turnpike Commission has entered into with the Land Title Guarantee and Trust Company.

A preliminary “background” statement is appropriate before we undertake an analysis of the facts and law of this case.

[35]*35As the petition was originally filed in this court in this case on July 22, 1952, the plaintiffs sought immediately to enjoin all work on the Turnpike. However, as a result of an extended hearing on August 1,1952, on the question of whether an immediate injunction should issue, the court suggested that the legal question here was of such great importance to the public generally that it should be decided without the “crisis atmosphere” of an “injunctive relief” case To obtain an “unhurried” atmosphere, the court suggested, and the parties acceded, that an amended petition should be filed in which the request for an injunction would be withdrawn and the prayer would be, simply, for a declaration by the court as to whether The Land Title Guarantee and Trust Company was, as a corporation, actually engaged in the unlawful practice of law in discharging the obligations of its contract with the Ohio Turnpike Commission.

Following the August 1, 1952, hearing, the pleadings of all parties were filed and the case was duly advanced for trial, out of its regular order (because of the importance of the questions presented). The trial took place on October 30, 1952, and the parties then were granted leave to file their respective briefs. It was not until May 2, 1953, however, that the final brief was filed, and the case then became ready for decision.

With this recital of “background,” we will, as briefly as possible, state the facts. On June 4, 1952, The Land Title Guarantee and Trust Company entered into a contract, based upon a bid by that company, with the Ohio Turnpike Commission, which required The Land Title Guarantee and Trust Company to perform, not solely for itself, but rather for the Turnpike Commission and for a consideration in money, the following, among other “Title Services”:

(1) Examine the title to the right-of-way parcels involved (paragraph 5c).

(2) Prepare a legal description of the parcels (paragraph 5d).

(3) Prepare and transmit to the Turnpike Commission (paragraph 5e), a “preliminary title report” for each parcel, such report to contain (1) “the nearly complete legal description * * * of the right-of-way parcel * * *” (2) “a statement of the approximate acreage of the right-of-way parcel; (3) a statement of the approximate acreage of the entire ownership parcel; * * *” (5) “a statement of all the title defects and encumbrances against the right-of-way parcel; including mortgages, liens, leases, etc., to which Title Co., will take an exception * * * unless cleared by appropriate means; (7) “a statement of the instruments or actions which Title Co., will require in order that Title Co. will issue either its title-insurance policy [36]*36or its title guarantee with respect to the right-of-way parcel with no exception as to such defects or encumbrances; and (8) recording data * * * sufficient to enable the draftsman of the right-of-way parcel to comply with §2573 GC * *

(4) Later, examine the documents by which the Turnpike Commission proposes to acquire title to a parcel, or by which the Commission has cured, or proposes to cure, defects “and inform the commission in writing if there are any further title defects or encumbrances to which Title Co., would take exceptions * * *” (paragraph 5K).

(5) Keep “records and evidences including ‘chain sheets’ ” available to the Commission for three years (paragraph 5o). (Verbatim language is used and emphasis is added.)

Attention is directed to the fact that all of the foregoing, specifically enumerated “services” are to have been rendered (excepting only the “three-year preservation of records” item) well in advance of the issuance of any policy of title insurance or title guarantee by The Land Title Guarantee and Trust Company to the Ohio Turnpike Commission. It is also significant that these contracted-for “services” would have to be rendered whether or not a policy of title insurance, or a title guarantee, is ever issued (in the event of change of route, for example).

The “stipulation” as to the facts of this case, and the oral evidence adduced October 30, 1952 in open court, serve to elaborate upon the practices engaged in under this June 4, 1952, contract.

A copy of the “Trust Agreement” under which the Turnpike Commission issued its bonds was tendered into evidence at the October 30, 1952, trial and this court reserved its ruling on the admissibility of such “Trust Agreement” into evidence. As we view the issues in this case, we doubt the necessity of admitting this exhibit into evidence as we do not see its materiality to the issues. Accordingly, it will not be admitted.

As we view the issue of law before this court in this litigation, that issue may be stated, at the risk of over-simplification, as

Do the foregoing “services” (which the Land Title Guarantee and Trust Company are required to perform under the contract with the Ohio Turnpike Commission) constitute the unauthorized practice of law by a corporation when they are performed for a consideration (as specified in the June 4, 1952 contract) and for a party other than the Land Title Guarantee and Trust Company itself? H

The Supreme Court, in the case of State, ex rel. Ohio Turnpike Commission v. Allen, Secretary-Treasurer, 158 Oh St 168, [37]

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Related

Cincinnati Insurance Co. v. Wills
717 N.E.2d 151 (Indiana Supreme Court, 1999)
Land Title Co. of Alabama v. State Ex Rel. Porter
299 So. 2d 289 (Supreme Court of Alabama, 1974)
Lichter v. Land Title Guarantee & Trust Co.
150 N.E.2d 53 (Court of Common Pleas of Ohio, Franklin County, Civil Division, 1955)

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Bluebook (online)
113 N.E.2d 763, 65 Ohio Law. Abs. 33, 1953 Ohio Misc. LEXIS 371, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steer-adair-v-land-title-guarantee-trust-co-ohctcomplfrankl-1953.