Gooch v. Peebles

105 N.C. 411
Supreme Court of North Carolina·Decided February 15, 1890·Published·Cited by 15 cases

Opinion

Davis, J.

after stating the facts: Several questions are presented in the record, but we think it only necessary to consider that presented by the refusal of his Honor to give the first prayer for instruction asked by the plaintiffs, and the exception to the charge as given in relation thereto, as these will be decisive of the case upon its merits.

Were the plaintiffs entitled to the first prayer for instruction, which was denied, and if so, was it sufficiently included in the charge as given?

An attorney is licensed by the State to practice law, and is thereby invested with certain rights and privileges, which impose upon him correlative duties and obligations. ■ He is an officer of courts in which he may practice, and occupies a quasi official relation to the public, and when he assumes the duties of attorney to client, one of these, undoubtedly, is to communicate to his client any fact within his knowledge relative to the business about which he is employed, that it may be important for the client to know; and having once [427] assumed the relation of attorney to client, he cannot terminate it at his pleasure, and without notice to his client, so long as anything remains to be done about the matter in which he is so employed. Weeks on Attorneys at Law, § 249; Walton v. Sugg, Phil. Law, 98.

It is admitted that Mr. W. W. Peebles was attorney for the plaintiff C. T. Johnson, but he insists that he was only her counsel as executrix “for the administration of the estate as long as she remained executrix, up to the time of her removal,” and that he ceased to be such when she was removed. ¡She was not only executrix of the will of Y. A. Johnson, about which it was his duty to advise her, but she was also trustee under the will, with important duties to discharge as such — a trust that involved rights of her own as well as duties to others. It appears from the record that she was a non-resident, and, in any event, it was the duty of her attorney to inform her of the fact that she had been removed as executrix, and that she had rights as a devisee, and duties to discharge as trustee under the will which remained, notwithstanding her removal as executrix.

These wrere matters of great importance to her, about which it is manifest she would need counsel, and if he intended no longer to act as such, it was his duty to so inform her, and he could not terminate his relation to her as attorney without so informing her. Needing counsel and having employed counsel, she could not be thus left ignorant of the fact that she had none.

The duty of counsel did not begin with the proceedings instituted for her removal as executrix.

He had been employed long before, and was, what has been usually termed, general counsel and adviser as to her duties under the will, and her duties as executrix and her rights and duties as trustee w’ere so intimately blended that duties of counsel would have been only half discharged if he failed to advise her as to both, and, in the absence of any [428] notice or information to the contrary, she had a right to regard the relation of attorney and client as .continuing, and the attorney could not terminate it without such notice. Scrupulous good faith is required of an attorney towards his client, and even after the relation ceases, the attorney can acquire no rights and assume no obligations in regard-to the subject-matter of his advice and counsel antagonistic to the rights and interests of the client, unless the most ample information has been afforded to place the client on her guard. Weeks on Attorney, §271, et seq.; Ziegler v. Hughes, 55 Ill., 288.

But it is said that no fees were paid. This cannot alter the case. It does not appear that they were demanded or required to be paid in advance, and she was not notified that payment of fees was necessary as a requisite to the continuance of counsel. Besides, it was not unnatural that she should have supposed that they would be paid in the settlement of the estate, when funds might be in hand to enable her to do so. However this may be, the attorney is not justified in terminating his relation to his client for this reason without notice. Weeks on Attorney, § 316.

Mr. Peebles says: “ I suppose she (C. T. Johnson) is a trustee under the will; I did not consider that I had any other employment from her but' the probate of the will and the settlement of the administration of the estate; she had no other attorney but me,” &c. And again, in regard to the proceeding for the sale of land, &e., he says: “I saw Mr. Long; a day was appointed for him to come; he came and made the affidavit to the petition. It was agreed that I should act for him, do the work and take the commissions. He turned the whole matter over to me, and I really acted as administrator. I was his attorney, and I was also defendant.” These were relations that placed his duty and his interest in conflict, and the law will not permit it.

[429] It was not necessary that there should have been any actual fraud in the transaction, but the rule which forbids it, rests upon the broad principle of public policy which precludes persons occupying these fiduciary relations, from representing conflicting interests that may tempt them to disregard duty and lead to injury on one side or the other.

The law will not permit an attorney to represent conflicting interests at the same time, nor will it, after he has represented one side, ■permit him to become the attorney of the adverse side in regard to the matter in controversy to the detriment of his original client. Molyneux v. Huey, 81 N. C., 113.

“ The relation of attorney and client is usually terminated by the termination of the particular proceeding or business for which he was employed. * * * His authority to act cannot be ended by his own voluntary act to his client’s detriment.” Weeks on Attorneys at Law, §249. Again, it is said by the same author, §258: “An attorney employed, or consulted as such, to draw a deed, or an application for an original title to land, is precluded from buying for his own use any outstanding title. In such case the relation is confidential, and whether he acts upon information derived from his client, or from any other source, he is affected with a trust. The rule is on the ground of public policy, not of fraud, and prevails, although the attorney be innocent of any intention to deceive and acts in good faith.”

Mr. Peebles says: “I bought the interest of Dr. Johnson in the land before she was removed. I did not advise her that I had bought his interest. * * * I did not conceive it was my duty t® advise her that I had purchased and claimed the land ” He afterwards says: “ I don’t remember (when the purchase under the execution was made) whether she had been removed or not.”

[430] It appears from the order of removal, dated March 23d, 1876, and the date of sale, April 6th, 1876, as a matter of fact, that she was removed before the purchase; but it is distinctly stated that she was not informed of it, either before or after, and having acted as her attorney, he could acquire no interest in the matter antagonistic to hers, without notice to her, and the fullest and fairest explanation. Henry v. Raiman, 25 Penn., 359.

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Gooch v. Peebles, 105 N.C. 411 (N.C. 1890).

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