SENATE BILL No. 1229

May 2, 2000, Introduced by Senators DUNASKISS, HOFFMAN, MC COTTER, BENNETT

and SHUGARS and referred to the Committee on Judiciary.

A bill to amend 1917 PA 354, entitled

"An act to prohibit the practice of law by corporations and vol-

untary associations and to provide penalties for violations,"

by amending section 1 (MCL 450.681).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 1. (1) It shall be unlawful for any A corporation or

2 voluntary association to SHALL NOT practice or appear as an

3 attorney-at-law for any A person other than itself in any A

4 court in this state or before any A judicial body, or to make

5 it a business to practice as an attorney-at-law, for any A

6 person other than itself, in any of said courts or to A COURT

7 OF THIS STATE OR hold itself out to the public as being entitled

8 to practice law , or TO render or furnish legal services or

9 advice, or to furnish attorneys or counsel or to render legal

10 services of any kind in actions or proceedings of any nature or

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1 in any other way or manner, or in any other manner to assume to

2 be entitled to practice law or to assume, use, or advertise the

3 title of lawyer or attorney, attorney-at-law, or equivalent terms

4 in any language in such A manner as to convey the impression that

5 it is entitled to practice law , or to furnish legal advice,

6 services, or counsel, or to advertise that either alone or

7 together with or by or through any ANOTHER person, whether a

8 duly and regularly admitted attorney-at-law , or not, it has,

9 owns, conducts, or maintains a law office or an office for the

10 practice of law , or for furnishing legal advice, services, or

11 counsel. It shall be unlawful further for any A corporation or

12 voluntary association to SHALL NOT solicit itself or by or

13 through its officers, agents, or employes any EMPLOYEES A claim

14 or demand for the purpose of bringing an action thereon ON THE

15 CLAIM OR DEMAND or of representing as attorney-at-law , or for

16 furnishing legal advice, services, or counsel to a person sued or

17 about to be sued in any action or proceeding or against whom an

18 action or proceeding has been or is about to be brought, or who

19 may be affected by any action or proceeding which THAT has been

20 or may be instituted in any A court or before any A judicial

21 body, or for the purpose of so representing any A person in

22 the pursuit of any civil remedy. Any

23 (2) A corporation or voluntary association violating the

24 provisions of this section, and every EACH officer, trustee,

25 director, agent, or employe of such EMPLOYEE OF THAT corpora-

26 tion or voluntary association who directly or indirectly engages

27 in any of the acts herein prohibited BY THIS SECTION or assists

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1 such A corporation or voluntary association to do such A

2 prohibited acts shall be ACT IS guilty of a misdemeanor, and

3 shall be punished PUNISHABLE by a fine of not to exceed 1,000

4 dollars $1,000.00 or by imprisonment for a period of not to

5 exceed 6 months, or by both. such fine and imprisonment, in

6 the discretion of the court. The fact that such THE officer,

7 trustee, director, agent, or employe shall be EMPLOYEE IS a

8 duly and regularly admitted attorney-at-law shall not be held to

9 permit or allow any such DOES NOT PERMIT THAT corporation or

10 voluntary association to do the acts prohibited herein nor shall

11 such fact be a defense upon the trial of any of the persons men-

12 tioned herein for a violation of the provisions of VIOLATE THIS

13 SECTION AND IS NOT A DEFENSE FOR A PERSON THAT VIOLATES this

14 section.

15 (3) This section shall DOES not apply to any corporation

16 or voluntary association lawfully engaged in a business autho-

17 rized by the provisions of any AN existing statute, nor OR to

18 a corporation or voluntary association lawfully engaged in the

19 examination and insuring of titles of real property. , nor shall

20 it THIS SECTION DOES NOT prohibit a corporation or voluntary

21 association from employing an attorney or attorneys in and

22 about FOR its own immediate affairs or in any litigation to

23 which it is or may be a party, or from employing an attorney or

24 attorneys to render legal aid without charge to any employes AN

25 EMPLOYEE of such THE corporation or voluntary association. ,

26 nor shall it THIS SECTION DOES NOT apply to organizations

27 organized for benevolent or charitable purposes, or for the

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1 purpose of assisting persons without means in the pursuit of any

2 civil remedy, whose existence, organization, or incorporation

3 may be IS approved by the circuit court of the circuit in which

4 the principal office of said THE corporation or voluntary asso-

5 ciation may be located. Nothing herein contained shall THIS

6 SECTION SHALL NOT be construed to prevent a corporation from fur-

7 nishing to any A person , lawfully engaged in the practice of

8 the law , such information or such clerical services in and

9 about his OR HER professional work as, except for the provisions

10 of AS PROVIDED IN this act, may be lawful. : Provided, That at

11 all times HOWEVER, the lawyer receiving such THE information

12 or such services shall maintain full professional and direct

13 responsibility to his OR HER clients for the information and

14 services so received. But no corporation shall be HOWEVER,

15 THE CORPORATION IS NOT permitted to render any services which

16 THAT cannot lawfully be rendered by a person not admitted to

17 practice law in this state nor OR to solicit directly or indi-

18 rectly professional employment for a lawyer.

19 (4) THIS SECTION DOES NOT APPLY TO REPRESENTATION OF A

20 MOBILE HOME PARK AS PERMITTED IN SECTION 916 OF THE REVISED JUDI-

21 CATURE ACT OF 1961, 1961 PA 236, MCL 600.916.

22 Enacting section 1. This amendatory act does not take

23 effect unless Senate Bill No. 1228

24 of the 90th Legislature is enacted into

25 law.

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