People ex rel. Courtney v. Ass'n of Real Estate Taxpayers of Illinois

• Decision Date: 07 December 1933
• Docket Number: No. 21697.,21697.
• Citation: 187 N.E. 823,354 Ill. 102
• Parties: PEOPLE et rel. COURTNEY v. ASSOCIATION OF REAL ESTATE TAXPAYERS OF ILLINOIS.
• Court: Illinois Supreme Court

354 Ill. 102

187 N.E. 823

PEOPLE et rel. COURTNEY

v.ASSOCIATION OF REAL ESTATE TAXPAYERS OF ILLINOIS.

No. 21697.

Supreme Court of Illinois.

Oct. 21, 1933.

Rehearing Denied Dec. 7, 1933.

Original proceeding by information in the name of the People, on the relation of Thomas J. Courtney, seeking to have the Association of Real Estate Taxpayers of Illinois, a corporation, punished for contempt for engaging in the practice of law, and to enjoin it from continuing in such practice.

Respondent found guilty of contempt and directed to pay fine and costs in accordance with opinion.

Otto Kerner, Atty. Gen., Thomas J. Courtney, State's Atty., of Chicago, and J. J. Neiger, of Springfield (Edward E. Wilson and Grenville Beardsley, both of Chicago, of counsel), for relator.

Watkins & Ten Hoor, of Chicago, for respondent.

FARTHING, Justice.

This is an original proceeding by information in the name of the people, by John A. Swason, state's attorney of Cook county, for whom Thomas J. Courtney, his successor, was substituted as relator, against the Association of Real Estate Taxpayers of Illinois, a corporation organized not for profit, as respondent, seeking to have the respondent punished for contempt of this court for engaging in the practice of law and also to enjoin it from continuing such practice. Leave to file the information was granted, a rule was entered requiring the respondent to answer, and it filed its answer, and the cause was referred to Roswell B. Mason, a master in chancery of the circuit court of Cook county, as commissioner of this court, to take the evidence and report his conclusions of fact and law. The commissioner heard the evidence and submitted his report recommending that the relief prayed be denied and finding that the respondent had not engaged in the practice of law. Five objections were filed by the relator to the report of the commissioner and were by him overruled, which objections were ordered to stand as exceptions in this court. After the filing of the report, briefs were filed on behalf of both parties.

The facts in this case are that the respondent is an Illinois corporation organized May 9, 1930, under the Illinois laws, as a corporation not for profit. Its objects as stated in its articles of incorporation are as follows: ‘The object of this corporation is to establish an organization with which all illinois real estate tax-payers may become affiliated to permit united protection for themselves in matters of taxation and legislation and to prevent an inequitable distribution of tax burdens on real estate and all incidentals thereto pertaining.’ It appears that thirty-three owners of large amounts of real estate in Cook county donated $50,000 towards the furtherance of the objects of the corporation. Officers were elected and on executive secretary or director was employed. Representatives of the respondent appeared before the General Assembly and unsuccessfully sought the adoption of a funding program for the Cook county taxes for the yer 1929 by the issuance of twenty-year bonds. In 1930 the respondent's representatives unsuccessfully sought reassessment of personal property in Cook county at the hands of the Illinois State Tax Commission. Early in 1931 respondent's executive committee voted to seek recourse in the courts from the real estate taxes in said county, which they believed to be burdensome. It was then decided to invite owners of real estate, generally, in said county to become members of the association. Membership cost was fixed at one per cent. of the amount of taxes assessed for the year 1929 on real estate owned by an applicant, together with legal fees of $5 on each tax bill of $200 or less and $10 on each tax bill in excess of $200, with a minimum membership fee of $2, and 200,000 membership blanks were distributed to owners of real estate in said county on or about April 1, 1931. Approximately $75,000 was paid the association by 4,800 applicants for membership using the blanks above mentioned, and no fees or commissions were paid for securing these applications for membership. About November 1, 1931, th respondent distributed 500,000 circulars entitled, ‘The Tax Strikers,’ which called the attention of the Cook county real estate taxpayers to the fact that personal property was not bearing its proper proportion of the tax burden. About February 15, 1932, the respondent distributed 500,000 membership application blanks for the listing of real estate with it for litigation in respect to the 1930 taxes thereon. Upwards of 23,000 taxpayers in Cook county made application for membership and paid the respondent approximately $350,000 in membership fees. February 1, 1931, the respondent employed attorneys to represent it in all litigation on behalf of its members in respect to the validity of the 1929 taxes. Nine suits, each in the names of individual members of the association, were filed by the association through its attorneys, some of which, on appeal, have reached the Appellate Court and this court. Services were rendered by the respondent's attorneys which it is stipulated were reasonably worth and would have cost an individual client $200,000. Each of these suits sought to attack the validity of the taxes for the year 1929 or the year 1930. Al expenses of this litigation, including court costs and attorneys' fees, were paid by the respondent. The attorneys representing those members of the respondent whose names were used, were selected, employed, directed, and paid by the respondent. The respondent determined all questions which were to be litigated. About April 1, 1932, the respondent distributed in Cook county 500,000 copies of a printed circular entitled, ‘Association Still Listing Property,’ and also distributed about that time 500,000 cards entitled, ‘New Radio Broadcast Schedule.’ About May 19, 1932, the respondent distributed 500,000 of a 24-page booklet entitled, ‘Accomplishment-The Remarkable Record of an Unusual Institution-A Summary of Two Years' Activities.’ In addition, the executive secretary of the respondent made talks, in accordance with a regular schedule, from two radio stations, and about January 20, 1931, the respondent distributed approximately 500,000 copies of a circular entitled, ‘Sixteen Billion Dollars.’

Such statements as the following were contained in the application blanks and pamphlets aforesaid:

‘The Association of Real Estate Tax-payersis prosecuting suits in both the county and State courts. Properties must be protected from forfeitures and tax sales until the validity of the tax is established by a ruling of the Supreme Court. All members of the association for a nominal legal fee can obtain efficient protection from tax sale or forfeiture for delinquencies. * * * The additional legal fee is five dollars on each tax bill of $200 or less; $10 on each tax bill in excess of $200. The cost of membership in the association is one per cent. of your latest tax bill, with a minimum fee of two dollars. * * * The toxsin call is sounded. Other forms of wealth are powerfully organized. We need your support and that of every real estate tax-payer you know.’

‘For more than fourteen months the association has been continuously prosecuting its tax cases in various county...