## 148

OFFICE OF THE AlTORNEY GENERAL OF TEXAS

**AUSTIN**

**Eonorable Tom** **L.** Beauehsap 8430mb~y **0r** sta **Audiin,** Texas

**Bear**slr: **Attention Claud**  **A8mistent &are** 

tter or Au&u& 5, k, the roibakg Qomleotlon th.Fewithr - \\ \-A

**, In**  **an8wer to**  

### pounded**bj this**  **C**T **Corporation the**  **C T**  **Corpora** utharized to mpobtainin& perbusiners in Tsxas~and in aorpomttonfi to **laoorporete** Ira*ra of the 8tata of Texas.Honorable Tom L. Beeuohemp, **Page** 8

"1. I8 the looel ettarnsy rfolating the Uneuthorlaed Preotlos Aat by filing these paperr,$or end on bshalt or this oorporetio&whloh is not euthorised to preotioo law In the State or Texas?
"S.Would thl8 oiiioe be auihor%zo4 to refu8e to permit thl8 attorney, or any othem attorney, ,torile ep~lloetion8 ror peraaiteor rorei~tioorporetion8 to do busins inTeXe8 sndOther OOrpOrete p8- per8 fbr the C T Corporation System or the Corporation Tmmt Company or my other oorporation attempt;%ngto praatlae lm inviolation or our Penal Code?"

u opinion x0* o-977 Or t&ii8d8peZ'tQUJUt **by** riOnOI.- able Ardsll **Williama,** itwe8 held, among 

### .other thlng8, that the drawing and filing or 8pplloetlona 

### ror pennit to do 

## bu8ln888

in.Texaa on b&elf of 

### rordgu aorpor&tidne by the 0. T:.Corporation Syhtm, e Delawem eorporatlm, et the in8teMe and **reqwst** 

### or mmlber(1or the bar8 0r iCacelgl~ 8t(LtQ8,OOIU5titUt88the plTiOti6QOr law by seld,OOrpOra- !tion,tmd thet suoh note ere uxtlewf'ul a a vial&ion of Article 43Oe, Vernon~8 PenaL-code, nemely, the Unlawful Praatioe Act or Texas.

The rirst paragraph or 8eotion 3or Artisle 4306 wa8 the prlnelpal basis of,the above ruling. It reeds 88 followsr
"It ah611 b8 unlewful ror any

corporation topraotioe law as **de** rtxmd **by** thi8 **Aat or**  **to appear** **as** an attorney for any person other tfianitaelr in any oourt in this State, 

### or before **any** judloial body or snr board or OOauni88fOnot the State Of Texes; OF hold itself out to the publie or advertise a8 being emtitled~to praotloe law; end no 

### aorporation8heiLl prepare oorporete ohertsr8 **or** 8mndmanta thereto, or other legel doouments ' not relating to it8 authorized buainese, or drew wills; orhold itaeli out in any **meaner** direatly **or idiireotly**  **as be**  ing entitled toAo any or the ioregoing 6Ot8; provided, that the fOre@ing ,8hellHonorable Tom IA Bseuohmp, Page 3

not prevent e oorporcltioh,

### pereonor eseoaiation 0r persone rrom.empI.oying en attorney oroth8r egent or reprsawntetlve In regard to its owhprfeire in ehy hearing or lnve8tlgetlon beiorr any a&ninls.tratlreorrioial or body.*
It now appears that the CO T. Corporation System, whlohwe ea8ume lnoludee the 

### Corporetlon Trust Comp8ny, 3.8 **eeekt~g** to do lndlrectlp whet 6mount8 to en illcrgalsot 

### ibr it t0 do dlreot3.y.i.e., preeentlng to the seoretery 

### 0r stats the appllontlons or r0ntign oorporatlon8 

### for permit8 to do

## bumlxmm, and other oorpomte papers, through a looal 6ttOrll8~in**Aoptln.** Thm looel attorney la'not repre8entiry tba 0. T. Corporation Syetea in 

### reepeotto ltb own bU8iaeS8 

### ina &riot tmme4or 

### theword. He **ie** rather **hmndllxtg ior**  them a8 amore or lea8 routine netter bu8ine8eor 00nai **Oli~~ttS** 

### 0r the 

### c. **T.** Corporetlon sy8tea,&a., riihig or 

### p8per8 end other OOrpOmte in8trument8~ whloh it **i8 ib**  lsgal‘for the oorporatlon ltnel? to tren8eot.

The C. Ti Corporetion Sy!&em, alnoe'lt i8 **Pot** a- ,
ploylng 8u attorney -in regard to It8 own timup, ia **not** Within the **p\lrviOW** Or the **rOimiRg pr0Yi80**  **in th%**  **flmt** p8mgr8ph or seotlon 3 **or** Arti 4506, above quoted:



### “

. . .provided, the&.the Soregoing Shell not pIWYe# a OOrpOrlltiOn,,pereon or e8eoolatlon 0r **pmson8** 

### mm employ- ,lngen attorney or other egent or preprseentative **in** regard **to it**  **8 own**  **aitair8** in 8ep heerlng or investlgetlo~ before eny 

### e&ninl.st~etlva of'flogalor body.* Section 7 or Art1018 430a, eupre, providr8;
"Any agreement by 8ey per80uI, oorporetlon, or eS8OOl6tlOIAinvlolatlon or thl.8**Act** 8hal1 be lllegel end euah person, oorporation, or 688ooietlon shell not be eble to reodvsr'ror any 8ervlosa rendered in rloletlon or this Aot, either on the oontreot or a maal-oontreotuel obligation. If any pemon, aorpoketlon, **or** e8eooletlon 02 lXUWon8 8hdl1, by any eo&or **t~~i8810n** in vloletlon of thle **Aot, 06U8e**  **8x1~ 1080,**  

### d.mnqe,**or fnjU** * **t0**HonortibleTom L. Beanahamp, Page 4

any pemon, oorporatlon, or amooiatl& of persona, euoh peraon5, oorporatlon, or assooiation of pareons 6hall be liable in actual damages thereror to Amy person, oorporatlon, or aaeooietion of permae who sustained any aueh loam, damage or **iajury;** 

### andsuoh liability ehsll be 

### absolute**end** 

### notdependent UPOA my qUeStiOn Or **5hOWb** OfWMAt of skill, oare or dlllgenoo.n
If the above eeotion ie Aot **aimbd at**  **such**a alt uation aa we oonfront IA this iAi3tanae.we fall to eppreaiate the purpoes of its enaotme~t. **Obviously** the C. Tc Corporatlon -Systema-the looal attorney hate OAtOTOd tit.0a~ %gremt . . . iA ViOlatiOA Of the **Aat*.** Ths Whob t-r and ob1eative of the Unlawful Praotiioe**Aot** are ooAtr+veA5d

Of oourse, by "any agreement . . .

### IArfolation of 

### thisAat" 1s **meant** primarily the OOAtlWOt between the ollant apd the oorporatlon **praotiolng** law in riolation of the

### hot,but the mop. of the phr558 tiwide 

### l nou& toaubraoe emarrangement aoah aawehare before ~11.,Jheright of the looal attorney ta npresmtt a legitimate ollaaf %8 UAqueSithmed. Ho ha5 m right topaid#md abet a olisnt in riolatloA 0r the law of this State.

The looal attorney ooaupies'the 5tatAa Of 8~ -At **or** repremntatlre of the **aorporatlon,appointed** beoama of his law liaentae.ror the p~xposo or airaumrentirrgthe parpose or awholeaome~atatute.

Presidio County va. Shook, 24 c%v. **~App.**daYi, %O a*. SW.
*It iswell tuxderstoodthat the relation oi attorney md olient 1s a relation oi agency, **and in**  **1ta:general** features ie govemod **by** the scansrulsa whioh apply to other 

### af$enaIeB.*
Of 

### aour~e, the attorney, a5 agent of his pri.noipal.,is authorized to praotiae law, whereas hie &ieAt is not, but it is against public pollor for the attorney to aeslOt his olient in the violation Ot a peAti law O? the State.

## 152

Ronarable Tom L. Beauohemp, Page 5



### Thesituation athand ie ainilar to that inwhioh a aeaond oontraat grows out 

### or, and isoomeoted with, a prior Illegal contract, with the lllega#lity of the prior oontraat entering into the new oontract and rendering it lllegel.
It ia our opinion that the local attorney ia riolating the Unauthorized Praotioe Aot, that is,&%iale 

### 4SOa, Vernon*8Annotated Penal Code, **by** filing a)plloatloas of foreign oorporatlona forpernits ta **do**business in Teraa for and on behalf of the C. T. COrpOSRtiOA System, whlah ir unauthorized to practice law in the State of Texae. We further hold that the Seoretary of State may deny 5~ attommy the right to rile spplioetlons for pennits for rorelgn oorporatlons to do businees in Texas, end other corporate pa**pore** for'the C. T. Corp6ratloA Systexi,or the Corporation Trust Company, or any other corporation attemptlng to praotlae law in violation of the Penal.Code of this State.

Trusting that the abme fully answers quiriee, we are

Yours very your int-r



### ATTORNEYGENERALOF' TBXAS