60 Ga. App. 615 | Ga. Ct. App. | 1939
The John Bean Manufacturing Company brought its action against the Citizens Bank of Gainesville, Georgia, to recover money paid by the bank under the following conditions, and we adopt in the main the statement of facts set out in the brief of the plaintiff: The John Bean Manufacturing Company “placed in the hands of Hope & Fox, attorneys, of Gainesville, Georgia, a claim for collection. This claim was paid to said Hope & Fox by a cheek made payable to order of John Bean Mfg. Co. . . The said Hope & Fox endorsed the name of the John Bean Manufacturing Company, by Hope & Fox, Attys., Gainesville, Georgia,” on the check, “and deposited it to their credit in the Citizens Bank of Gainesville,” the defendant. The check carried the following notation: “This check is in full settlement of account as shown hereon. Acceptance by endorsement considered receipt in full to John Bean Mfg. Co.” The defendant demurred generally and specially. The court, after argument, ordered that the “demurrer” be sustained and the action dismissed. The plaintiff excepted. Under the facts of the case there seems to be no question that the attorneys- were acting within the scope of their authority as agents to make the collection on behalf of their client, and that in cash, for remittance to the client. The only questions arising are whether the attorneys had authority to indorse the name of their client, by themselves as attornej's, on a check payable to the client, and secure payment thereof for deposit to their credit in the bank; whether such action by the attorneys resulted in forgery; and whether under all the circumstances the participating bank was liable to the payee, John Bean Manufacturing Company, the client of the attorneys.
It is well settled that upon a claim being placed with an attorney at law for collection, unless the contrary clearly appears, the attorney has no authority to accept and remit to his client anything other than money. The Code, § 9-606, declares: “Without special authority, attorneys can not receive anything in discharge of a client’s claim but the full amount in cash.” See Bell v. Kwilecki, 11 Ga. App. 9 (74 S. E. 444). “An attorney holding a client’s claim for collection can not, without special authority from his client, bind the client by an agreement to credit
“As a general rule an attorney can indorse his client’s name' to negotiable instruments payable to the order' of his • client only when he has been expressly authorized to do so. . . However, the power to make an indorsement has been implied where it is
Moreover, an attorney having an interest in the collection in the nature of a commission for services in effectuating the collection, has authority to indorse the name of his client to whom the check is made payable, by himself as attorney, in order that he may deduct- the commission fees before remittance of the collection to the client. “If the agent is authorized to remit the amount -in changed form, as where he is to deduct his commission, he would ordinarily be authorized to indorse the principal’s name for the purpose of obtaining the bank draft or other thing which he is to remit to his principal.” 1 Restatement of the Law, 172, § 72-e. The attorneys in the case at bar, having authority to indorse the client’s name on the check, by themselves as attorneys, had also the right to deposit the proceeds from the check either to their personal account or to their account as attorneys. “If an. attorney has authority to indorse a check payable to his client, he has apparent authority to deposit the proceeds thereof either in his individual account or his account as attorney.” Charleston Paint Co. v. Exchange Banking & Trust Co., 129 S. C. 290 (123 S. E. 830). Under the facts in the instant case the action of the attorneys did not constitute the crime of forgery. There can be no forgery where the attorneys have authority to indorse the name of their client on a check payable to the client, by themselves as attorneys. “Attorney employed to collect claim against United States has implied authority to indorse client’s name on draft received in payment, and such indorsement is not forgery.” Bailey v. United States, 13 Fed. 2d, 325. The attorneys in this case having the right to indorse the name of their client, the bank was within its right and authority when it cashed or paid
Judgment affirmed.