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Marvin N. Benn & Associates, Ltd. v. Nelsen Steel & Wire, Inc.

Citations: 437 N.E.2d 900; 107 Ill. App. 3d 442; 63 Ill. Dec. 251; 1982 Ill. App. LEXIS 2012Docket: 81-1631

Court: Appellate Court of Illinois; June 24, 1982; Illinois; State Appellate Court

Narrative Opinion Summary

In this case, a professional service corporation, Marvin N. Benn Associates, Ltd., filed a lawsuit against Nelsen Steel and Wire, Inc., alleging tortious interference with its contract with Transplex, Inc. The primary legal issue revolved around whether the contract was primarily for legal services or business services. The trial court dismissed the complaint, finding the contract to be a business agreement and unenforceable under public policy, as it did not primarily involve legal services. The plaintiff argued that the contract's main purpose was legal services, supported by an affidavit, but the court upheld its ruling, emphasizing that public policy and ethical standards preclude legal professional corporations from engaging primarily in business brokering. The appellate court affirmed this decision, underscoring the necessity for legal corporations to align their services with their articles of incorporation and the importance of adhering to ethical standards that prohibit solicitation. The outcome was a dismissal of the tortious interference claim, affirming the contract's incompatibility with public policy.

Legal Issues Addressed

Ethical Standards for Attorneys

Application: The court emphasized the importance of adhering to ethical standards, including those prohibiting solicitation, as outlined by Illinois Supreme Court Rules and ethical opinions.

Reasoning: Ethical Opinion No. 677 from the Illinois State Bar Association emphasizes the importance of separating legal practice from other businesses, asserting that conducting another business from a law office constitutes solicitation.

Professional Service Corporation Act (PSCA) Compliance

Application: The court affirmed that a legal professional corporation must align its services with its articles of incorporation, focusing on legal services rather than business brokering.

Reasoning: The articles of incorporation for Benn, Associates specify that its primary function is the practice of law, thus indicating that public policy disapproves of any legal professional corporation primarily engaged in business brokering services.

Public Policy and Legal Services

Application: The court held that the contract's primary purpose was to provide business services and that entertaining an action for tortious interference would violate public policy.

Reasoning: The trial court determined that the contract's primary purpose was to render business services rather than legal ones, classifying any legal services as ancillary.

Tortious Interference with Contract

Application: The court examined whether the plaintiff's contract with Transplex was primarily legal or business in nature, determining it was a business contract and thus unenforceable under public policy.

Reasoning: The trial court dismissed the case, ruling that Benn's contract with Transplex was primarily a business contract not related to legal services, thus making it unenforceable under public policy.