Johnson v. Outlaw

Citations

• 56 Miss. 541

Syllabus

<p>1. Attorney and Client. Attorney of creditor. When permitted to purchase debtor’s property.</p> <p>An attorney bolding for collection for a client choses in action, not being liens or charges upon the property of the debtor, is not precluded by his obligations to his client from purchasing the debtor’s property at a judicial sale with which his client has no connection, if the purchase be free from intentional mala fides on his part. And in such case the attorney is not bound to notify his client of the sale before it takes place.</p> <p>2. Same. Attorney of judgment-creditor. Not allowed to purchase debtor’s property.</p> <p>Where an attorney controls for several clients two or more judgments, he-may have the debtor’s property sold under the senior judgment, and may purchase it for his clients; but if he purchases for himself, the law regards him as holding the legal title in trust for his clients, and not as owner of the property; and any of such clients may claim the property, and, by refunding the money paid out by the attorney, will become entitled to the benefit of the purchase. In such circumstances the attorney is legally disabled to purchase for himself the debtor’s property; and the questions, whether the purchase is made in good or bad faith, whether detrimental to the interest of the client or clients, and whether profitable to the attorney, are not considered in law.</p> <p>3. Same. Attorney purchasing debtor’s property. Duty of client claiming benefit.</p> <p>When a client becomes aware of the fact that his attorney has purchased for himself property in relation to which he has some claim or interest, which has been intrusted to the care and management of the attorney, it is his duty, if he purposes to claim the benefit of the purchase, to notify the attorney promptly of his election in respect thereto; and this duty is especially incumbent upon the client where there has been no moral turpitude in the conduct of the attorney, or where a delay in th