Pacific Bank v. Stone

Citations

• 121 Cal. 202
• 53 P. 634
• 1898 Cal. LEXIS 875

Syllabus

<p>Insolvent Bank—Authority of President—Employment of Special Counsel.—The -president or acting president of an insolvent hank has no authority, by virtue of his office merely, to retain special counsel in addition to the attorneys of the bank regularly employed to assist in litigation for the bank, without the sanction or ratification of the board of directors.</p> <p>Id.—Action upon Note—Defense of Special Contract—Quantum Meruit. Where an attorney, sued by the insolvent bank upon a note executed by him thereto, alleged in defense a special contract made with the acting president of the bank, employing him to assist as special counsel in litigation for the bank, in consideration of a surrender and cancellation of the note, without relying upon any counterclaim for the value of work and labor performed by him for the benefit of the bank, he cannot recover upon a quantum meruit.</p>