Summary
The Supreme Court of Ohio held that Bandali Dahdah and Alexicole, Inc. engaged in the unauthorized practice of law by representing Ohio residents in securities-arbitration matters and performing related legal services. The court enjoined the respondents from providing legal advice or representing clients or corporations in Ohio unless Dahdah becomes licensed to practice law in Ohio, and taxed costs to the respondents.
Topics
Practice areas
Questions Presented
- Whether Dahdah and Alexicole, Inc. engaged in the unauthorized practice of law by representing Ohio residents in securities-arbitration matters and performing related legal services.
- Whether the Supreme Court of Ohio should enjoin Dahdah and Alexicole, Inc. from continuing those activities.
Holdings
- Representing Ohio residents in securities-arbitration matters, providing legal advice, preparing statements of claim and discovery, participating in prehearing conferences, negotiating settlements, and attending mediation and arbitration hearings on claimants' behalf constitute the practice of law; because Dahdah was not licensed in Ohio, his performance of those activities constituted the unauthorized practice of law.
- A corporation cannot lawfully engage in the practice of law, including through officers who are not licensed to practice law.
Key quotations
“The unauthorized practice of law consists of rendering legal services, including representation on another’s behalf during discovery, settlement negotiations, and pretrial conferences to resolve claims of legal liability, by any person not admitted to practice in Ohio.” (at 52)
“Moreover, a corporation cannot lawfully engage in the practice of law, and it cannot lawfully engage in the practice of law through its officers who are not licensed to practice law.” (at 53)
Factual background
Alexicole, a Delaware corporation owned and controlled by Bandali Dahdah, engaged in securities arbitration. Dahdah was not licensed to practice law in Ohio, but he represented Ohio claimants and admitted that he regularly prepared statements of claim, conducted discovery, participated in prehearing conferences, negotiated settlements, and participated in mediation and arbitration hearings on behalf of Alexicole clients. One represented client was an Ohio resident pursuing an arbitration claim against McDonald Investments, Inc.
Procedural history
Disciplinary Counsel charged Bandali Dahdah and Alexicole, Inc. with the unauthorized practice of law in representing Ohio residents in securities-arbitration proceedings. After striking respondents' answer because it was not filed by a licensed attorney, the board granted relator's motion for default, considered stipulated facts and supplemental materials, and recommended injunctive relief. The Supreme Court of Ohio concurred in the board's findings and recommendation and entered the injunction.