People ex rel. Wayman v. Chamberlain

242 Ill. 260
CourtIllinois Supreme Court
DecidedOctober 26, 1909
StatusPublished
Cited by17 cases

This text of 242 Ill. 260 (People ex rel. Wayman v. Chamberlain) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People ex rel. Wayman v. Chamberlain, 242 Ill. 260 (Ill. 1909).

Opinion

Mr. Justice Vickers

delivered the opinion of the court:

This is an information filed by the State’s attorney of Cook county, at the relation of the grievance committee of the Chicago bar association, against George B. Chamberlain, for the purpose of having the license of said Chamberlain to practice law revoked and his name stricken from the roll of attorneys of this court.

Respondent was duly licensed as an attorney and counselor at law under the rules of this court on the 28th day of March, 1896. It appears from the record in this case that in comiection with his law practice the respondent conducted a mercantile and collection agency under the name of “The Lafayette Mercantile Agency,” under which name respondent furnished to subscribers information concerning the financial standing and responsibility of merchants and received and collected claims on a commission basis. The Lafayette Mercantile Agency was not incorporated nor is it a partnership. So far as the record discloses, no person other than respondent had any interest in the business of the agency. The first charge in the information relates to respondent’s business transactions with a brokerage concern doing business in Chicago under the name of Buckley & Co. On October 18, 1898, Buckley & Co. entered into a written contract with respondent’s mercantile agency by which it was provided that Buckley & Co. employ said agency for a period of one year to procure and transmit to them information respecting the responsibility and commercial rating of persons concerning whom Buckley & Co. should inquire, and for this service Buckley & Co. agreed to pay a stipulated sum, the receipt of which was acknowledged. Said contract provided for commissions on collections, as follows : “No charges less than two dollars. On all sums not exceeding $300, ten per cent; on sums from $300 to $1000, ten per cent on $300 and five per cent on the balance; on sums over $1000, two and one-half per cent. For all collections settled by patrons while in the hands of this agency subscribers must pay our fees as stipulated. All moneys promptly remitted when collected. We wish it distinctly understood that this agency does not sue all claims committed to their hands, but will push all stale claims and satisfy our subscribers that we have done all in our power to settle the same.”

During the year that the foregoing contract was in existence Buckley & Co. placed a large number of claims in respondent’s hands for collection. Among the claims thus placed with respondent were four judgment notes made by Louis Nagel, of Weston, McLean county, Illinois, payable to the order of Gants, Bames & Co. and by them endorsed, all of said notes being dated May 18, 1894, and payable as follows: One for $200, due one year after date; the second for $200, due two )rears after date; the third for $250, due three years after date; and the fourth for $289, due four years after date,—all of them bearing interest at the rate of seven per cent per annum. These notes were placed in the hands of respondent for collection on December 13, 1898, through Preston Gants, who at that time was in the employ of said Buckley &' Co. Gants was one of the original payees and endorsers of these notes,-and it appears that prior to the time the notes were turned over to respondent Gants had become the sole owner of said notes, and the assignment to Buckley & Co. was to secure an indebtedness due them from Gants. Respondent held these notes until April 17, 1900, when he sent the first one of the series to a corresponding attorney by the name of Henning for collection. In his letter transmitting the note to Henning respondent said: “The terms of collection are on the enclosed slip that accompanies this note,—two-thirds of ten per cent to you and one-third to us.” Nothing appears to have been done either by the respondent or Henning toward collecting this note until in May, 1905, when judgment was confessed on it a day or two before the Statute of Limitations would have become a bar against an action on it. On June 1, 1905, Henning reported to respondent that Nagel had paid the judgment and costs in full, amounting to $372.75. On June 3, 1905, respondent received a draft from Henning for $335.90, being the proceeds of the judgment after deducting ten per cent fees. On June 7 Henning reported to respondent that he had caused judgment to be confessed upon the three notes remaining unpaid in his hands for $1385.17, being the full amount of principal, interest and attorney’s fees due according to the tenor of the notes. On June 16, 1905, respondent wrote Henning a letter referring to a long distance telephone conversation, in which Henning had informed respondent that Nagel had offered to pay $1000 cash in full satisfaction of the second judgment. Respondent advised Henning to use his best judgment in reference to the proposed settlement. Henning accepted Nagel’s proposition, received $1000, and after deducting fees, costs, etc., on June 21, 1905, sent respondent a draft for $864.48, net proceeds of said settlement. This draft, as well as the former one for $335.90, malting a total of $1200.38, was received by respondent, but no part of it was reported to or paid over at the time by respondent to his clients. Some time after the notes were placed with respondent for collection, and before they were paid, Gants discharged his obligation to Buckley & Co. to secure which these notes had been pledged and the notes again became Gants’ property, discharged of any lien in favor of Buckley & Co. There is some uncertainty, due to respondent’s contradictory statements, as to the time when he first learned that the notes had again become the unencumbered property of Gants. On June 17, 1905, after he had received the first remittance from Henning, respondent wrote to Gants, saying that he could not report on the Nagel matter at that time but that he hoped to be able to drive Nagel to a satisfactory settlement in a short time; that when he did he would report to Buckley & Co. and make a settlement with them. He says: “The notes were outlawed on the 18th of May, so whatever is gotten out of this thing is just so much money found.” At the time this letter was written respondent knew that judgment had been entered upon all of the notes, that the first one had been paid in full, and that Nagel had offered $1000 in settlement of the second judgment.

After the settlement of these claims with the respondent Gants made numerous unsuccessful attempts to obtain an accounting from respondent in regard to the money collected on the Nagel notes. Respondent insisted that he had a counter-claim against Buckley & Co. for commissions on various sums which had been paid to Buckley & Co. on claims which were in respondent’s hands for collection, and he insisted that he would not pay over any part of the money received from Nagel until he had an opportunity to .look through the books of Buckley & Co. to ascertain the amount due him for commissions by payments made directly to Buckley & Co. on claims in respondent’s hands for collection. On September 6, 1905, having failed to obtain any satisfactory settlement with respondent, Buckley & Co. and Gants employed John T. Richards, an attorney and member of the Chicago bar, to procure an accounting and settlement from respondent, and gave Richards a letter of authority in which they asked respondent to pay Richards all sums of money remaining in respondent’s hands belonging to either Buckley or Gants. Afterwards Richards presented his letter to the respondent and opened negotiations looking to an adjustment of the account.

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Bluebook (online)
242 Ill. 260, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-ex-rel-wayman-v-chamberlain-ill-1909.