The issue before this Court is whether the respondent has exceeded its lawful jurisdiction by permitting the plaintiff corporation to appear through persons not admitted to practice law in this state. Respondent cites IC 34-1-60-1 [Burns Sup. 1978] and argues that the Indiana legislature has created an exception to the general rule that a corporation must appear in court through counsel. That exception, it is argued, exists when the corporation becomes a party to an action brought in small claims court. IC 34-1-60-1 reads:
“A civil action may be prosecuted or defended by a party in person or by attorney.A corporation and any organization required to make application to the secretary of state under IC 25-11-1-3 must appear by attorney in all cases except that, corporations organized under IC 23-1-2-1,23-1-13-1,23-1-14-1,23-1-15-1 and 23-7-1.1-1 need not appear by attorney in civil cases filed on a small claims docket of a circuit, superior or county court.
Relator maintains that the respondent has exceeded its jurisdiction notwithstanding the language in the above statute. Relator argues that IC 34-1-60-1 impinges upon the Indiana Supreme Court’s constitutional jurisdiction to determine and control the conditions precedent to the practice of law in this state. It further argues that a corporation should be required to be represented by counsel in all courts within the Supreme Court’s jurisdiction, including small claims court.
The Indiana Constitution gives this Court original jurisdiction to determine the qualifications for admissions and practice of law. Constitution OF Indiana, Art. 7, § 4;
see also
Ind. R. Ap. P. 4(A) which implements this grant of authority by court rule. This function is judicial and separate from the legislative or executive domain.
State ex rel. Indiana State Bar Association v. Mortiz,
(1963)
The Indiana Rules on Small Claims Court provide that a party may appear either in person or by attorney.
See
Rule 2(B)(5). These rules are silent, however, as to whether a corporation may appear through an agent who is unlicensed to practice law. The general rule in most jurisdictions has been to require this agent to be an attorney.
Securities and Exchange Commission v. Research Automation
Corp., (2nd Cir. 1975)
“When one appears in court representing one of the parties, counsels and advises with such party and drafts pleadings, both in the trial court and in this court, and assumes the general control of the action, he is practicing law____The permission granted by statute (Ill.Rev.Stat. 1969, Ch. 13, par. 11) to prosecute and defend actions “in their proper persons” has never been, nor could it be, construed to include corporations, even in a small claims case.
We find this view to be persuasive. When a corporation becomes a party to a civil action its status to represent itself in that proceeding differs from that of an individual. The individual has a personal stake in the outcome of the litigation and can readily be identified as both a party litigant and an individual person. A corporation, however, although a person in the eyes of the law, cannot be wholly identified with any individual person and thus, by necessity, must be represented by its agents. Those agents can only have an
For these reasons, we hold that a corporation must be represented by legal counsel in a small claims court proceeding and that IC 34-1-60-1, to the extent that it is inconsistent with this holding, is without force or effect. Respondent has therefore exceeded its jurisdiction by permitting the plaintiff corporation to appear through agents not admitted to the practice of law. Our temporary writ to the respondent court is hereby made permanent.
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