Don Blank, Inc. v. Butler, Unpublished Decision (3-6-2007)
Don Blank, Inc. v. Butler, Unpublished Decision (3-6-2007)
Opinion of the Court
{¶ 3} On March 31, 2006, the case was called for trial. Richard Anderson, who is not an attorney, appeared on behalf of appellant, a corporation. The defendant did not appear. The trial court dismissed appellant's complaint, explaining in a March 31, 2006 judgment entry that the corporation appeared through an employee who was not an attorney.
{¶ 4} Appellant filed timely notice of appeal. The defendant did not submit a brief as appellee. In a later entry, submitted in response to appellant's App.R. 9(C) proposed statement of the evidence, the trial court detailed its rationale. The court's findings will be discussed infra.
{¶ 6} "A corporation which is a real party in interest in any action in a small claims division may commence such an action and appear therein through an attorney at law. Such a corporation may, through any bona fide officer or salaried employee, file and present its claim or defense in any action in a small claims division arising from a claim based on a contract to which the corporation is an original party or any other claim to which the corporation is an original claimant, provided such corporation does not, in the absence of representation by an attorney at law, engage in cross-examination, argument, or other acts of advocacy." *Page 3
{¶ 8} "THE TRIAL COURT ERRED IN DISMISSING THE PLAINTIFF'S CLAIM SOLELY AS A RESULT OF THE PLAINTIFF CORPORATION APPEARING THROUGH A[N] AUTHORIZED SALARIED REPRESENTATIVE."
{¶ 9} Appellant interprets R.C.
{¶ 10} The trial court held that any part of R.C.
{¶ 11} Then, the court disclosed that its standard procedure allows only the complaint to be filed by a salaried employee but requires an attorney to appear for trial. The court noted that it has no prior notice of defaults because answers are not required in small claims cases and opined that it would be unfair if dismissal of plaintiff's complaint for lack of counsel depends on whether or not defendant appeared. The court also cited perceived scheduling problems if the corporation appears without counsel hoping defendant would not show, but requiring the case to be reset for the corporation to hire an attorney if defendant in fact shows up.
{¶ 12} Appellant responds that its argument does not rely on whether or not defendant appears because the statute allows for filing andpresentation of the claim. Appellant urges that R.C.
{¶ 14} The Court considered the constitutional and statutory provisions regarding its power over the practice of law. Id. at {¶ 6, citing Ohio Const., Art.
{¶ 15} "Rather than view R.C.
{¶ 16} "* * * In refusing to enjoin Pearlman's activities in the small claims division of municipal court, we recognize an exception, albeit a narrow one, to the general rule that corporations may be represented only by licensed attorneys. R.C. *Page 5
1925.17 limits what a corporate representative may do. Pearlman observed these limitations. The public is not harmed by Pearlman's actions. In small claims cases, where no special legal skill is needed, and where proceedings are factual, nonadversarial, and expected to move quickly, attorneys are not necessary. We decline to require corporations to hire attorneys to represent them in small claims courts.
{¶ 17} "In summary, we hold that a layperson who presents a claim or defense and appears in small claims court on behalf of a limited liability company as a company officer does not engage in the unauthorized practice of law, provided that the layperson does not engage in cross-examination, argument, or other acts of advocacy." Id. at {¶ 26-27.
{¶ 18} Consequently, the Supreme Court dismissed the unauthorized practice of law complaint against Pearlman and upheld his actions on behalf of the limited liability companies under R.C.
{¶ 19} Here, the trial court dismissed the complaint merely because the corporation did not hire an attorney to appear at trial. R.C.
{¶ 20} The Supreme Court has upheld such actions under the statute and found the statute constitutional and enforceable. Contrary to the trial court's belief, it is not defendant's appearance or default that is relevant. Either way, the proper corporate representative can appear and provide his or her own testimony and present exhibits to support that testimony. That representative cannot engage in argument, cross-examination or other acts of advocacy. However, underPearlman, the representative clearly can appear on behalf of the corporation in order to avoid dismissal for lack of prosecution and can testify as an agent. Hence, appellant's assignment of error has merit. *Page 6
{¶ 21} For the foregoing reasons, the judgment of the trial court is hereby reversed and this case is remanded for trial upon proper application of R.C.
*Page 1DeGenaro, P.J., concurs. Donofrio, J., concurs.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.