State of Georgia ex rel. Joseph B. Doyle v. Frederick J. Hanna & Associates, P.C., 287 Ga. 289

695 S.E.2d 612 (2010) · Supreme Court of Georgia · June 7, 2010 · No. S10A0397

Summary

The Supreme Court of Georgia held that the Georgia Fair Business Practices Act does not apply to a law firm's debt-collection activities when those activities constitute the professional representation of clients in the practice of law. The court affirmed the denial of an application to compel compliance with an investigative demand issued by the Administrator of the Act. The majority declined to decide whether applying the Act to the practice of law would violate separation of powers, while three justices dissented.

Holdings

  1. Because OCGA § 10-1-404(b) expressly permits a recipient of an FBPA investigative demand or subpoena to object on statutory, constitutional, or other legal grounds, the court could reach the merits of whether the FBPA applied; the broader-agency-investigative-authority rule relied on by the Administrator did not preclude the objection.
  2. The FBPA covers the entrepreneurial or commercial aspects of the legal profession, but it does not apply to a law firm's representation of clients in a legal capacity, including debt collection performed as part of debtor-creditor legal practice.

Questions Presented

  1. Whether the appellee could object to enforcement of the FBPA investigative demand on the ground that the demand exceeded the Act's authority or violated another legal right or privilege.
  2. Whether the Georgia Fair Business Practices Act applies to a law firm's collection of debts owed to its clients.
  3. Whether the court needed to decide whether applying the FBPA to the practice of law violated separation of powers.

Disposition

affirmed

Cases Cited (13)

  • Securities and Exchange Commission v. Brigadoon Scotch Distributing Co., 480 F.2d 1047 (2d Cir. 1973)(distinguished)
  • BankWest v. Oxendine, 266 Ga. App. 771, 598 S.E.2d 343 (2004)(distinguished)
  • Federal Trade Commission v. Miller, 549 F.2d 452 (7th Cir. 1977)(followed)
  • Henderson v. Gandy, 280 Ga. 95, 623 S.E.2d 465 (2005)(followed)
  • Cripe v. Leiter, 184 Ill. 2d 185, 703 N.E.2d 100 (1998)(followed)
  • Beyers v. Richmond, 594 Pa. 654, 937 A.2d 1082 (2007)(followed)
  • Heslin v. Connecticut Law Clinic of Trantolo & Trantolo, 190 Conn. 510, 461 A.2d 938 (1983)(distinguished)
  • Haynes v. Yale-New Haven Hospital, 243 Conn. 17, 699 A.2d 964 (1997)(followed)
  • GRECAA v. Omni Title Services, 277 Ga. 312, 588 S.E.2d 709 (2003)(followed)
  • 1st Nationwide Collection Agency v. Werner, 288 Ga. App. 457, 654 S.E.2d 428 (2007)(distinguished)

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