Evening star., 1938-02-02
BAR ASSOCIATIONS
SUIT AGAINST BANK
HERE IS DISMISSED
American Security Company
Is Cleared of illegal Law
Practice Charge.
JUDGE HOLDS FIRM
CAN HAVE OWN COUNSEL
Bailey Denies Injunction to Bal
Company From Use Of It's
Salaried Legal Employees.

The American Security & Trust Co
stood cleared today of the charge BY
the District Bar Association that 1t u
engaged Illegally in the practice Of law
Justice Jennings Bailey Of District
Court stated late yesterday in a mem.
orandum opinion that he would ordeI
the bar associations suit dismissed
Through its Committee on Unauthor.
lied Practice, the association had
asked for an injunction and that the
trust company be held in contempt
of court, contending the American
Security firm had invaded fields re.
served for individual lawyers.
"The defendant is a business corporn
ton and has right to employ counsel
in carrying out its operation and Il
give advice in these matters" thu
justice stated, so long as the advice
and conduct Of these attorneys arr
confined to the purpose for which thu
corporation was chartered, and 81
long as fees are not collected from
customers to be paid into the treasury
OF the corporation or charged against
the salaries Of the attorneys"
Salaried Counsel Opposed.
The bar association had objected
to the use by the American Security
OF salaried attorneys in its extensive
probate work; to the preparation oi
trust agreements, and to the giving OF
legal advice, particularly in connection
with trust probate and tax matters
In all of these particulars, the court
held, the trust company had kep
within proper limits.
The contention of the American
Security that the court was without
jurisdiction to regulate the practice
OF law except practice actually befor
the court, was not accepted, however
by the jurist.
Judge Denies Contention.
I think" stated Justice Bailev
that this court certainly has thu
power to regulate the practice Of Law
IN its broader sense so far as It con.
Germs any legal questions that might
necessarily or even probably be passed
upon by this court, and to prevent
those who are not members of thu
bar OF this court from engaging in
such practice or in holding themselves
out as authorized to do So"
He held that the District Court wa,
poWerless to regulate practice before
the Supreme Court, the United State,
Court of Appeals. Federal statutor,
courts such as the Court of Claims and
the Governments various quasi-judi.
cial agencies.
"Over the practice before these
various courts and bodies, this court
has no power, nor can 1t prevent the
giving OF legal advice as to matter,
which may come before them or arc
likely to do so," Justice Bailey said.
May Use Own Counsel.
Not only may the trust company
use its salaried attorneys to probate
wills in which it is executor or admin.
istrator, but also need not employ
outside counsel even when litigation
develops between it and legatees.
The court said 1t cannot ATTEMPT
to control the practice of those en-
gagged In tax work, and also held that
the trust company's attorneys may give
advice concerning questions of inheri.
tance and distribution Of estates ia
persons contemplating making tho
trust company an executor or trustee,
Newspaper advertisements by the
American Security, which drew the
special fire Of the lawyers, were de.
scribed by the court as permissible
The law firm Of Mckinney, Elan.
merry d Craighill represented the trust
company In the court fight.