Lawall v. Groman
Lawall v. Groman
Opinion of the Court
Opinion by
At the close of the plaintiff’s testimony defendant moved for a nonsuit on three grounds, 1, there was no evidence of the relation of attorney and client, 2, there was no evidence of negligence, fraud or collusion, and 3, there was no evidence of any damages sustained by the plaintiff. The court entered a non-suit, and in refusing to take it off dwelt principally upon the failure to establish the relation of attorney and client between the parties, but we must of course assume that all three of the grounds were considered.
The payment of a fee is the most usual and weighty item of
In the present case it is undeniable that the defendant Avas acting for Roberts the borrower, from whom he received his compensation, and to whom alone, upon the manifest understanding of all parties he was to look for it. But that fact does not of itself prevent the relation of attorney and client between plaintiff and defendant, if such was the mutual understanding. There was no evidence of custom in that respect, and the court below might not be able to say as matter of law, certainly we cannot, that such was in fact the custom. But outside of the existence of any general rule there was evidence from Avhich the jury might have inferred that such was the understanding of these parties in this particular case.
The defendant unquestionably acted to some extent for and in behalf of the plaintiff. After the money was paid over he kept the mortgage which was then the property of plaintiff, and he put it on record. In so doing he was clearly acting for plaintiff, and if he had negligently delayed recording until a subsequent judgment or other incumbrance slipped in ahead of it, there can be no question that he would have been liable for the negligent performance even of a duty voluntarily assumed. But there was evidence that he did more for plaintiff than put the mortgage on record. Lawall testified that lie told defendant “ to search the title and the records in reference to liens ” and that “ he said he Avould,” and more to the same effect. The presumption is that this was done in behalf of plaintiff. To Roberts, the borrower, the priority of other incumbrances was of no concern with regard to this loan, except as bearing on plaintiff’s willingness to advance the money, but to plaintiff it was a material fact as part of the inducement or consideration for risking the investment.
We are of opinion therefore that there was sufficient evidence to submit to the jury on the existence of the relation of attorney and client in the case.
The argument for the third ground of nonsuit, that it has not yet been shown that plaintiff has suffered any damage, would not be without force if the question were new, inasmuch as she took the mortgage as security only and the mortgagor when called upon may pay the debt, or the mortgage being sued out the property may bring enough to cover it. But the law is settled the other way. Plaintiff is entitled to the security she contracted for, and may recover the difference in value between that and what she actually got. The cause of action is the breach of duty, not the damages, which are only an incident. Miller v. Wilson, 24 Pa. 114, was very similar to the present case. The plaintiff had judgments which were a lien on certain real estate, and agreed with a purchaser of the latter to accept his bond secured by mortgage on the land. Defendant was employed as attorney to carry out the agreement, and in that capacity satisfied plaintiff’s judgments, but neglected to have the mortgage recorded until other judgments were entered ahead of it. In meeting the point now made, Chief Justice Black said, “ The argument is that plaintiff has not as yet suffered any actual loss from the defendant’s violation of duty; and that she can recover from Miller (defendant) only in case Carson (mortgagor) make default; because the mortgage being but a security for the bond there is nothing due on the former until the condition of the latter is broken. But we hold it for clear law that defendant .... subjected himself to an immedi
The cases have usually arisen on the statute of limitations, and it has been uniformly held that the right of action is complete so that the statute begins to run from the breach, although the damage may not be known or may not in fact occur until afterwards. In Moore v. Juvenal, 92 Pa. 484, it is said by the present chief justice, “ Where the declaration alleges a breach of duty and a special consequential damage, the breach of duty and not the consequential damage is the cause of action, and the statute runs from the date of the former, and not from the time the special damage is revealed or becomes definite.” See also Lilly v. Boyd, 72 Ga. 83, citing our own case of Rhines v. Evans, 66 Pa. 192.
On the question of damages the plaintiff’s case was weak. The statement avers that the property is “ not worth more than twelve hundred dollars.” The witness Yeager thought it would be “ cheap at ten or twelve hundred dollars,” and Dr. Eegley, the owner of the first and second liens testified that the property had “ rather increased during the last two years.” That is about all there is on the subject. But although it is meager we cannot say that it is not enough to go to the jury. If they should find the security worthless, and the court in view of the fact that the verdict must necessarily be based largely on opinion on that point, should have any doubt on the subject, its powers are sufficient to prevent injustice to the defendant. In Green v. Dixon, 1 Jurist, 137, a similar action against an attorney for taking an insufficient security, Lord Abinger having indicated his opinion that plaintiff had made out a cause of action, a verdict was rendered for plaintiff for the amount advanced, he undertaking to convey the security taken to any one appointed by the defendant. The equity powers of courts even in suits at law in Pennsylvania are ample to protect the defendant in the same or equivalent manner.
The offer contained in the third assignment was clearly incompetent. There was no evidence, as the learned judge said, of collusion or fraud, and nothing to make the declarations of Roberts evidence against defendant.
The fourth assignment however must be sustained. The
Judgment reversed and procedendo awarded.
Reference
- Full Case Name
- Marian Lawall v. Clinton A. Groman
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- Attorney and client — Evidence to establish relationship — •Same attorney representing adverse interests. The payment of a fee is the most usual and weighty item of evidence to establish the relationship of client and attorney, but it is by no means indispensable. The essential feature of the professional relation is the fact of the employment to do something in the client’s behalf. There must be an agreement, express or implied, for compensation,-but whether payment is made in part or in whole by retainer in advance is not material. Nor is it even indispensable that the compensation should be assumed by the client. Ordinarily it is so from the nature of the employment which in the vast majority of cases involves the guarding or enforcement of the client's interest against an adverse one, and is, therefore, exclusive. But oven adverse interests if to be amicably adjusted may be represented by the same counsel, though the cases in which this can be done are exceptional, and never entirely free from danger of conflicting duties. Per Mitchell, J. The mere fact that an attorney acts for a borrower and receives his compensation from him does not of itself prevent the relation of attorney and client between the attorney and the lender, if such is -the mutual understanding. It is proper to submit to the jury the question of the relationship of attorney and client between a mortgagee and the mortgagor’s attorney, where there is evidence that the attorney kept the mortgage and placed it on record, and that he agreed “ to search the title and the records in reference to liens.” Attorney and client — Attorney representing both mortgagor and mortgagee — Duties and liabilities of. Where an attorney at law representing the mortgagor undertakes at the request of the mortgagee to see that tl;e mortgage is a first lien, although the mortgagor is to pay the fees, he is bound to perform the duty with ordinary and reasonable skill and care in his profession, and on failure so to do he will be liable for negligence in that respect. Attorney and client — Breach of duty — Damages. Where an attorney for a mortgagee is negligent in his duty of examining the title to the land mortgaged, the mortgagee is entitled to bring suit at once without waiting for the mortgage to be sued out, and may recover the difference in value between the security he contracted for, and that which he actually received. The cause of action in such a case is the breach of duty, not the damages, which are only an incident. Attorney and client — Mortgage—Negligence—Damages. In an action against an attorney at law to recover damages for neglect of duty in examining title to land upon which plaintiff took a mortgage for one thousand dollars, the evidence showed that the defendant stated that the mortgage was a first lien, when in fact there were two prior liens aggregating one thousand dollars. The statement of claim averred that the property was “ not worth more than twelve hundred dollars.” A witness thought it would be “cheap at ten or twelve hundred dollars,” and the owner of the prior liens testified that the property “had rather increased during the last two years.” Held, that the evidence as to damages although meager was sufficient to go to the jury. Evidence — Attorney and client — Declarations—Mortgage. In an action against an attorney at law by a mortgagee to recover damages for loss occasioned by negligence in examining title, declarations of the mortgagor, in the absence of evidence of fraud or collusion between him and the attorney, are inadmissible. Principal and agent — Evidence—Declarations—Proof of agents. Although agency cannot be proved by declarations of the alleged agent yet he is a competent witness to prove it, and ids testimony cannot be restricted to the mere words used by the principal, but is admissible generally on the whole subject.