Szteinbaum v. Kaes Inversiones Y Valores

476 So. 2d 247, 10 Fla. L. Weekly 2209, 1985 Fla. App. LEXIS 15987
CourtDistrict Court of Appeal of Florida
DecidedSeptember 24, 1985
Docket84-1184
StatusPublished
Cited by38 cases

This text of 476 So. 2d 247 (Szteinbaum v. Kaes Inversiones Y Valores) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Szteinbaum v. Kaes Inversiones Y Valores, 476 So. 2d 247, 10 Fla. L. Weekly 2209, 1985 Fla. App. LEXIS 15987 (Fla. Ct. App. 1985).

Opinion

476 So.2d 247 (1985)

Victor SZTEINBAUM and Bella Szteinbaum, Appellants,
v.
KAES INVERSIONES y VALORES, C.A., Appellee.

No. 84-1184.

District Court of Appeal of Florida, Third District.

September 24, 1985.

Lisa Bennett and Richard Bennett, Coral Gables, for appellants.

Simson Unterberger, Tampa, for appellee.

Before DANIEL S. PEARSON and FERGUSON and JORGENSON, JJ.

DANIEL S. PEARSON, Judge.

The question on this appeal is whether a complaint filed by a non-attorney on behalf of a corporation may be amended to cure this deficiency. We decide that such a complaint may be amended and affirm the order under review.

The plaintiff corporation, Kaes Inversiones y Valores, C.A., sued Szteinbaum. The corporation's complaint and summons were personally served on the defendant. The defendant moved to quash service of process and dismiss the complaint on the ground, inter alia, that it did not appear from the complaint that the corporate plaintiff was represented by an attorney. *248 The trial court granted the motion to dismiss with leave to amend. The corporate plaintiff filed an amended complaint signed by an attorney and served it on Szteinbaum's attorney by mail. Szteinbaum again moved to dismiss contending now that because the original complaint was a nullity, it was necessary that the amended complaint be personally served upon him.[1] The trial court denied the motion, and this appeal followed.

It is well recognized that a corporation, unlike a natural person, cannot represent itself and cannot appear in a court of law without an attorney. Nicholson Supply Co. v. First Federal Savings & Loan Association of Hardee County, 184 So.2d 438 (Fla. 2d DCA 1966). Courts have reflexively applied this common law rule prohibiting the unauthorized practice of law and have offered three primary justifications in support of it. First, because a corporation is a "hydra-headed entity and its shareholders are insulated from personal responsibility," there must be one designated spokesperson accountable to the court. Oahu Plumbing and Sheet Metal, Ltd. v. Kona Construction, Inc., 60 Hawaii 372, 377-78, 590 P.2d 570, 574 (1979) (citing Austrian, Lance & Stewart, P.C. v. Hastings Properties, Inc., 87 Misc.2d 25, 27, 385 N.Y.S.2d 466, 467 (Sup.Ct. 1976)). Second, "[u]nlike lay agents of corporations, attorneys are subject to professional rules of conduct and thus amenable to disciplinary action by the court for violations of ethical standards." Oahu Plumbing and Sheet Metal, Ltd. v. Kona Construction, Inc., 590 P.2d at 574 (citing Merco Construction Engineers, Inc. v. Municipal Court, 21 Cal.3d 724, 727, 581 P.2d 636, 641, 147 Cal. Rptr. 631, 636 (1978) (in bank)). Third, attorneys purportedly have the legal skills necessary to competently participate in litigation and other proceedings. Oahu Plumbing and Sheet Metal, Ltd. v. Kona Construction, Inc., 590 P.2d at 575.[2]See also State ex rel. Western Parks v. Bartholomew County Court, 270 Ind. 41, 44-5, 383 N.E.2d 290, 293 (1978) (when corporate agents are not attorneys, "a lack of legal expertise combined with a failure to maintain a proper chain of communication between the agents at each level of the action may act to frustrate the continuity, clarity and adversity which the judicial process demands"); Land Management, Inc. v. Department of Environmental Protection, 368 A.2d 602, 603 (Me. 1977) ("To allow a corporation to maintain litigation and appear in court represented by corporate officers or agents only would lay open the gates to the practice of law for entry to those corporate officers or agents who have not been qualified to practice law and who are not amenable to the general discipline of the court.") (citing Union Savings Ass'n v. Homeowners Aid, Inc., 23 Ohio St.2d 60, 64, 262 N.E.2d 558, 561 (1970)). Since there can be little doubt that the act of filing a complaint constitutes the practice of law, compare Chicago Bar Association v. Quinlan and Tyson, Inc., 34 Ill.2d 116, 214 N.E.2d 771 (1966) (real estate broker may fill in usual form of earnest money contract which involves merely supplying factual data without committing unauthorized practice of law), with Housing Authority of County of Cook v. Tonsul, 115 Ill. App.3d 739, 75 Ill.Dec. 369, 450 N.E.2d 1248 (1983) (filling out forcible entry and detainer complaint constitutes the unauthorized practice of law), and the corporate plaintiff, not being an attorney, did thus engage in the unauthorized practice of law, our inquiry will turn to whether the product of that unauthorized practice — the complaint — must therefore be treated as a nullity.

In Nicholson Supply Co. v. First Federal Savings & Loan Association of Hardee County, 184 So.2d 438, the Second *249 District held that a complaint filed by a corporation which did not bear the signature of an attorney is a nullity which, thus defined, cannot be saved by a later amendment affixing the attorney's signature. In our view, Nicholson, with which our holding today directly conflicts,[3] was wrongly decided.[4],[5]

As this court declared in Puga v. Suave Shoe Corp., 417 So.2d 678, 679 (Fla. 3d DCA 1981) (en banc), public policy dictates that, whenever possible, cases "should be determined on their merits, instead of upon irrelevant technicalities." Thus, dismissal of the amended complaint in the present case in derogation of this "welcome policy," Puga v. Suave Shoe Corp., 417 So.2d at 679, is warranted only if it can be said that treating the defect of the initial complaint as incurable will somehow substantially advance some other more compelling public policy.

To be sure, the "protection of the public from incompetent, unethical, or irresponsible representation," The Florida Bar v. Moses, 380 So.2d 412, 417 (Fla. 1980), through the prevention of the unauthorized *250 practice of law is a compelling public policy. We suggest, however, that this latter policy is not served by a rule of law that declares that a complaint filed by a non-attorney on behalf of a corporation cannot be cured by the later appearance of counsel to represent the corporation and, moreover, that such a rule of law disserves the policy that cases should be decided on their merits. Where, as here, the representation of the plaintiff corporation, confined as it was to the filing of the complaint, was brief, minimal and essentially innocuous,[6] the unauthorized practice of law was adequately curtailed by the trial judge's eminently sensible decision to allow an attorney to appear for the corporation and thereby amend the complaint. Moreover, given the liberal rules of amendment in this state, see, e.g., Alvarez v. DeAguirre, 395 So.2d 213 (Fla. 3d DCA 1981), the filing of a complaint by a non-lawyer will rarely, if ever, permanently prejudice the plaintiff corporation, since once the corporation has been given leave to obtain counsel, such counsel will likely be permitted to amend the complaint as necessary. Indeed, prohibiting amendment and dismissing as a nullity the complaint would yield the ironic result of prejudicing the constituents of the corporation, the very people sought to be protected by the rule against the unauthorized practice of law.

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Bluebook (online)
476 So. 2d 247, 10 Fla. L. Weekly 2209, 1985 Fla. App. LEXIS 15987, Counsel Stack Legal Research, https://law.counselstack.com/opinion/szteinbaum-v-kaes-inversiones-y-valores-fladistctapp-1985.