Opinion ID: 2080549
Heading Depth: 2
Heading Rank: 3

Heading: Allegations of Unauthorized Practice of Law in the Jackson and Porter Cases

Text: In the first group of cases, it was alleged that defendant lenders prepared the loan documents. However, in the Jackson and Porter cases, plaintiffs have alleged in their complaints that the document preparation fees were paid to Docu-Tech, an independent document preparation service. In the Porter case, Docu-Tech was made a party defendant. However, the plaintiff there later filed a motion to dismiss Docu-Tech from the action on the ground that Docu-Tech was not the corporation that handled the plaintiff's loan transaction. The trial court granted the motion. In both cases, the closing statements indicate that the document preparation fees were paid to Docu-Tech. Each of the complaints contains two counts. Count I alleges the unauthorized practice of law and count II alleges a cause of action for money had and received. We have already held that where the mortgage lenders actually prepared loan documents, through their employees, for transactions to which the lenders were parties, the charging of a fee did not take the transactions out of the pro se exception to the unauthorized practice of law. A different situation is presented, however, where a person or entity that is not a licensed attorney and not a party to the transaction prepares the loan documents. In such a case, the pro se exception is not available and the preparation of the documents constitutes the unauthorized practice of law. We emphasize, however, that it is the preparation of the documentsthe filling in of blanks with the relevant information and the tailoring of the document to fit the particular transaction for which it is to be usednot the mere furnishing of legal forms for use by another, that makes the activity the unauthorized practice of law. As we have said, it is the character of the acts involved that determine whether one engages in the unauthorized practice of law. Quinlan, 34 Ill.2d at 120, 214 N.E.2d 771; In re Discipio, 163 Ill.2d 515, 523, 206 Ill.Dec. 654, 645 N.E.2d 906 (1994). A contrary holding would deter the provision of a legitimate service to those who use such forms in transactions to which they are parties. The allegations of count I of the Jackson complaint state that (1) defendant lender, Harbor Financial Group, originates mortgage loans; (2) in connection with plaintiff's loan transaction, the lender charged plaintiff a document preparation fee of $60 for filling out the note and mortgage and related documents; (3) the fee was paid to Docu-Tech; (4) the document preparation services were not performed by an attorney; (5) neither the lender nor Docu-Tech is a professional corporation consisting of attorneys licensed to practice law; and (6) it is the standard practice of the lender to charge a document preparation fee when it makes or arranges a loan. The complaint further alleges that the lender engaged in the unauthorized practice of law by performing document preparation services for a fee. Attached to the complaint is a copy of the closing statement, which contains an itemization of the settlement charges and shows application of the loan proceeds. It shows a charge of $60 to Docu-Tech for document preparation. In count I of her complaint, the plaintiff in the Porter case alleges that (1) defendant lender, Smith-Rothchild Financial Co., originates mortgage loans; (2) [now-dismissed defendant] Docu-Tech prepares and sells documents for use in making mortgage loans; (3) the lender charged plaintiff a document preparation fee of $70 for filling out the note and mortgage and related documents; (4) the lender in turn paid the fee to Docu-Tech; (5) the document preparation services were not performed by an attorney; (6) neither the lender nor Docu-Tech is a professional corporation consisting of attorneys authorized to practice law; (7) it is the standard practice of the lender to charge a document preparation fee when it makes or arranges a loan; and (8) it is the standard practice of Docu-Tech to prepare loan documents for a fee. The complaint further alleges that the lender and Docu-Tech engaged in the unauthorized practice of law by performing document preparation services for a fee. We need not decide in these cases whether the lenders may be held vicariously liable for the unauthorized practice of law engaged in by Docu-Tech because we hold that no private right of action for damages exists under the Attorney Act for the unauthorized practice of law.