Question

Dr. North, a surgeon practicing in Georgia, engaged an Arizona professional corporation consisting of twenty lawyers to represent him in a dispute with a Georgia hospital. West, a member of the law firm, flew to Atlanta and hired local counsel with Dr. North’s approval. West represented Dr. North in two hearings before the hospital and in one court proceeding, also negotiating a compromise between Dr. North and the hospital. The total bill for the law firm’s travel costs and professional services was $21,000, but Dr. North refused to pay $6,000 of it. The law firm brought an action against Dr. North for the balance owed. Dr. North argued that the action should be dismissed because the law firm failed to register as a foreign corporation in accordance with the Georgia Corporation Statute. Will the law firm be prevented from collecting on the contract? Explain.

Answer 1

Judgement for the law firm. In many purview's, single or disengaged exchanges don't establish working together inside the importance of such enlistment resolutions. Regardless of whether the exchanges are a piece of the business which the corporation is sorted out to lead, such disengaged acts won't establish working together in the event that they demonstrate no goal to take part in consistent business movement. The reason for such resolutions is to require enrolment of foreign corporations proposing to lead business inside the state consistently, not as a transitory issue.

Working with such registration statutes isn't established in either single or secluded exchanges. These disconnected demonstrations won't be incorporated being the same old thing on the off chance that they are not in consistent business action, however these exchanges are a piece of business. These statutes take are led to achieve registration of foreign corporations for not transitory stage where as on an ordinary and nonstop premise. The law firms exercises were restricted to Arizona, though different lawyers of the corporation were taken care of outside the conditions of incorporation. On earlier events West had spoken to customers in Georgia, which were no place identified with Dr. Norths portrayal. It was a disconnected exchange which the law firms had spoken to Dr. North, so no testament of power was required. The firm could gather the sum from Dr. North.