Seawell v. Carolina Motor Club, Inc.
| Decision Date | 18 March 1936 |
| Docket Number | 114. |
| Citation | 184 S.E. 540,209 N.C. 624 |
| Parties | SEAWELL v. CAROLINA MOTOR CLUB, Inc., et al. |
| Court | North Carolina Supreme Court |
Appeal from Superior Court, Buncombe County; Oglesby, Judge.
Action by the State of North Carolina, on the relation of Zeb V Nettles as solicitor of the Nineteenth Judicial District against the Carolina Motor Club, Incorporated, and another wherein on motion the State, on the relation of A. A. F Seawell, Attorney General of the state of North Carolina, was made party plaintiff. From an adverse judgment, defendants appeal.
Affirmed.
This was an action instituted by Zeb V. Nettles, solicitor of the Nineteenth judicial district, to restrain defendants from doing certain acts in violation of Code 1935, § 199 (a) brought upon application of certain members of the bar and of the Junior Bar Association of Buncombe county under authority of section 199(d). Later, on motion, the State ex rel. A. A. F. Seawell, Attorney General, was made party plaintiff.
The allegations in the complaint are substantially these:
That the defendant, Carolina Motor Club, Inc., is a North Carolina corporation with branch office in Asheville, N. C., and defendant, American Automobile Association, is a corporation authorized to do business in North Carolina, with branch offices operated through its codefendant, Carolina Motor Club, Inc.; that the defendants by word, sign, letter, or other advertising, hold themselves out as competent to give legal advice, to prepare legal documents and in consideration of a payment of regular annual dues, are engaged in advising or counseling in law, acting as attorneys or counsellors at law and in furnishing the services of lawyers without license so to do; that defendants, in their advertisements, hold themselves out and are engaged in furnishing the services of lawyers to assist persons in the collection of damages out of court, furnishing legal advice with respect to the ownership, operation, or registration of motor vehicles, the furnishing of attorneys for private prosecution of criminal actions, furnishing counsel and attorneys at law to defend persons charged with criminal offenses; that defendants circulate and distribute maps on which are printed advertisements by which defendants hold themselves out as furnishing services of attorneys; that by advertisement through the Carolina Motor News defendants hold themselves out as furnishing attorneys retained by them to represent persons in need of legal advice and court action; that defendants advertise to have collected $71,780.42 through its legal department in civil damages; that defendants are and have been engaged in advising and counseling in law and furnishing the services of lawyers, and are so advertising.
The plaintiff offered the following exhibits:
Exhibit A: "The Club through its Legal Department, will give advice to members with respect to the ownership, the operation, or registration of members' cars. In addition the Club will assist members in the collection of damages out of court. The Club does not, however, furnish legal service in civil matters which involve litigation. If, in order to collect damages, court action is necessary, the member must pay for such services to the attorney of his or her choice.
Exhibit B: "Legal Advice and Assistance." (Said words constituting a caption to a picture of a judge on the bench, with attorney, pleading case for client.)
Exhibit C: "A. A. A. Motor Club Attorneys in the Carolinas.
Herewith is a partial list of corresponding attorneys retained to represent Carolina Motor Club and A. A. A. Members in emergency cases. Members should bear in mind that these local attorneys should be consulted only in case of emergency. A full report of any case demanding legal advice should be filed promptly to club headquarters. It will then be handled by the Claim and Adjustment Department of the club which may, in its discretion, turn the case over to the proper corresponding attorney." (Follows list of approximately 100 North Carolina attorneys, with addresses.)
Defendants in their answer deny the material allegations of the complaint charging them with violating the statute, and deny they are engaged in the practice of law in any respect. Defendants allege further that these defendants, though incorporated, consist of groups of motorists banded together for their protection and for the advancement of the interest of motorists generally, both as to security and convenience, and for the enactment of wise motor vehicle laws for the safety of the public; that as incident to the service it renders, in return for the annual dues paid by its members, it uses its good offices to facilitate the amicable adjustment of small claims growing out of operation of automobiles; that in a few instances the club has employed counsel to attempt to settle property damage claims for its members, and has employed counsel to represent its members when unjustly prosecuted.
Affidavits of Coleman W. Roberts, president, J. H. Monte, secretary, and Frank D. Miller were offered by defendants, and those of W. C. Maness and A. O. Mooneyham by plaintiffs.
Upon the hearing, it was stipulated and agreed by all parties that jury trial in this action be waived; that the court should find the facts from the affidavits and pleadings and render final judgment thereon. The findings of fact, conclusions of law, and judgment of the court below are as follows:
"2. That the defendant, American Automobile Association, is a foreign corporation or organization but is represented in this state by its co-defendant, the said Carolina Motor Club, Inc., its duly authorized agent, and that the defendant, Carolina Motor Club, Inc., is a corporation organized and existing under and by virtue of the laws and statutes of this State.
3. That the defendants are in the business of rendering certain services to motorists who become members of said organization in consideration of the payment of certain membership fees and annual dues.
4. That among the services so rendered in consideration of the payment of said annual dues and fees, the defendant, Carolina Motor Club, Inc., and the defendant, American Automobile Association, through its agent, Carolina Motor Club, Inc., maintain and have maintained, what is known as a Legal Department and Claim and Adjustment Department of said club or clubs.
5. That the foregoing legal service is partially explained by an advertisement appearing in the Carolina Motor Club News for February-March, 1935, a newspaper published by Carolina Motor Club, Inc., pages 1, 2, 3 and 4 thereof, being attached to the complaint of the plaintiff, and exhibited, filed and placed in evidence in this cause, and that said advertisement is in part as follows:
(Follows long list of attorneys located in various towns in North and South Carolina.)
6. That said services are further explained by reference to advertisements published on maps issued by the defendants prior to April, 1935, one of which maps is attached to the complaint, and filed in evidence in this cause, which said advertisements state that attorneys services assure members of advice in any case involving an automobile and defense in criminal actions accruing from operation of an automobile; that the claim service department endeavors to collect damages for members out of court, and that $71,780.42 has been collected by this department for members, and that 6,150 members have been given legal advice by club attorneys.
7. That since April, 1935, said defendants have discontinued the advertising of legal services, but did not discontinue the rendering of said service until the issuance of the temporary restraining order in this cause.
8. That defendants' services to members in criminal law consist, and has consisted, of employing counsel for private prosecution where the member desired a criminal action to be vigorously pushed against a non-member motorist with whom he had had a collision, and in employing counsel to defend said members where in the opinion of the agent of the club the member was being "unjustly prosecuted" or was not admittedly guilty of driving under the influence of intoxicating liquor, and that these services were rendered to the...
To continue reading
Request your trial
-
Seawell v. Carolina Motor Club Inc
...184 S.E. 540209 N.C. 624SEAWELL .v.CAROLINA MOTOR CLUB, Inc., et al.No. 114.Supreme Court of North Carolina.March 18, 1936. Appeal from Superior Court, Buncombe County; Oglesby, Judge. Action by the State of North Carolina, on the relation of Zeb V. Nettles as solicitor of the Nineteenth Ju......