Brief Fact Summary. Rouse, (Plaintiff), brought suit against Pollard, (Defendants), based on the fraudulent actions of Thomas E. Fitzsimmons, a partner with Defendants in a law firm.
Synopsis of Rule of Law. Where one partner by fraudulent promises made in a transaction within the scope of the partnership business, obtains money from a third person and misappropriates it, the other partners are liable. If the transaction is outside the partnership business, the other partners are not liable and they are not bound by a statement of the partner who conducts such a transaction that he is acting on behalf of the firm.
Issue. Whether the receipt of Rouse’s money by Fitzsimmons was a transaction within the scope of Pollard’s business.
Held. No. The receipt of money for the purpose of investing it as soon as a good mortgage can be found, is not part of the practice of law and therefore, Fitzsimmons’ partners are not liable to Rouse
It has not, however, been done by lawyers, in this jurisdiction at least, with such frequency or appropriateness as to become a phase of the practice.View Full Point of Law