In re Rothschild

140 A.D. 583, 125 N.Y.S. 629, 1910 N.Y. App. Div. LEXIS 2995
Appellate Division of the Supreme Court of the State of New York·Decided November 11, 1910·Published·Cited by 2 cases

Opinion

Ingraham, P. J. :

The Association of the Bar of the City of New York presents to this court charges against the respondent, an attorney and counselor at law, of malpractice and gross. professional misconduct: The respondent interposed an answer and the charges were referred to a referee, who has made his report, and the matter is now before this court on that report. The respondent was admitted to practice in May, 1887, and since that time has practiced in the city of New York. There were two charges, one that the respondent authorized the Empire Manufacturing Company to send out over his name what was called a garnishee notice, which was annexed to the petition ; and the second, that the respondent'gave to this corporation a general power of attorney wherein the employees of the said company were authorized to sign the name of the respondent to letters [584]*584of collection and other business relating to or in connection with the business of the said furniture company, as long as the persons mentioned remained in the employ of the said company, for which the respondent received from the furniture company furniture of the value of $150. The notice which was sent out by this furniture company to which was attached the printed name of the respondent was headed, Empire Furn. Mfg. Co. vs. H. P. Downes,” was directed to the Brunswick Balke Col. Co., Employer, and H. P. Downes, Wage Earner,” and contained a notification that the claimant had a claim against the said wage earner for the sum of five dollars and seventy-five cents and costs, “ now due and owing, Arthur Rothschild, attorney, 519 West 21st Street, Rew York, R. Y., is authorized to accept and receipt for the same,” and stated that, “In accordance with an act of your State relating to the garnishment of wages adopted. May, 1908, in force Rovember,. 1908, demand is hereby made on you for the payment of the aforesaid claim out of the wages or commissions due or to become due of such wage earner not exempt from garnishment; and you are required to hold the excess of the same wage earner’s wages or commissions, above his legal exemptions, subjeet to garnishment for the period provided in said Act. And you, the said employer are to notify the said wage earner by delivering to him a copy of this notice, left with you for that purpose.” This notice was dated the 18th of February, 1909. At the foot of this instrument was the following: This notice holds pay for five days and is followed by garnishment proceedings; ” and also the following.

Rotice to Employee.— To ignore the above will be the cause of annoyance to your employer. It is followed by a garnishment and a subpoena duces tecum, compelling your employer to bring all books into court to show your account. You can save this annoyance and yourself further costs by prompt settlement; ” and printed in red ink across the face is the following statement: “A copy of this garnishee will be served on your employer within three days unless paid.” This notice was served upon Dow/nes as an employee and at the same time was served on the Brunswick Company, the employer of the said Downes. Downes consulted his attorney for advice who called up the office of the respondent and finally entered into a conversation with a man in the office who said that he was the [585]*585respondent. This individual stated that he was the attorney for the Empire Furniture Manufacturing Company; whereupon the attorney stated that he had received this alleged garnishment demand which apparently referred to an action pending between the Empire Furniture Company and Downes and asked if such an action had been started. The respondent stated that the details of the affairs of the company were handled by a clerk who was at the office of the furniture company for that purpose. The attorney for Downes then asked under what provision of law such a demand had been made, and the reply was: “ Yon ought to know it is under the Garnishee Law.” The attorney subsequently received a letter bearing the office address of the respondent which purported on its face to have been dictated by the respondent in relation to the claim.

The referee found that the respondent had no knowledge of this particular circular, or of its service upon the alleged debtor or his employer, and the person who signed the name of the respondent to this letter was not authorized to sign his name to letters or communications. The respondent admits that he had a conversation with Downes’ attorney over the telephone, but denies the attorney’s testimony as to what that conversation was. There is no claim that there is any law of this State which authorizes such a notice or that an action or any legal proceedings had been commenced by the furniture company against Downes. We are satisfied from a consideration of this testimony that at the interview over the telephone notice was given to the respondent that a circular claiming that Downes’ wages would be garnisheed had been received by Downes and that there was then no repudiation by the respondent of the circular, or of the authority of those by whom it was sent; Downes’ attorney had the circular in his possession, and it is quite unreasonable to suppose that under such circumstances no mention should be made of the nature of the notice which had been received. The referee, however, has found that the respondent had no knowledge that such circulars were being sent out under his name, and that as soon as he ascertained the nature of the notices sent he repudiated the authority of the furniture company to send them and terminated his relations with the furniture company.

The second charge, which is undisputed, and of which the ref[586]*586eree has convicted the respondent, arises out of a power of attorney given in pursuance of an agreement between .himself and this furniture company, by which, accepting the respondent’s version of the transaction, he, in consideration of the receipt by him of furniture, the retail price of which was $150, gave a power of attorney to two employees of the furniture company to sign his name “ to any and all letters of collection and other business relating to or in connection with the business of the Empire Furniture Company of the Borough of Manhattan, City and State of Mew York, as long as my said attorneys in fact shall remain in the employ of the said Empire Furniture Company.” The respondent testified that about three or four months previous to the arrangement which he made with the furniture company he was requested to go to the office of the company ; that a Mr. Rosenfeld, who appeared to be in charge of the business there, stated to the respondent that the furniture company required an attorney by the year and asked the respondent what he wanted to handle their business — to make a contract to do all their work — and the respondent finally agreed to accept $500 for the first year. The company thought $500 too much to begin with, and it suggested an arrangement for $100 a year for which letters of collection were to be signed by the respondent and that arrangement was finally agreed to. The respondent was then referred to a Mr. Michaels, who had charge of this branch of the furniture company’s business, and from him the respondent received his instructions. The respondent’s testimony as to this arrangement was, that the respondent was .to draw up letters for collection in the usual form. These letters were to be sent to people who owed the furniture company moneys and Michaels was to draw them up and submit them to the respondent for his approval.

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In re Rothschild, 140 A.D. 583, 125 N.Y.S. 629, 1910 N.Y. App. Div. LEXIS 2995 (N.Y. Ct. App. 1910).

140 A.D. 583 (In re Rothschild) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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