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31-32 News Bull. 1 (1971-1972)

handle is hein.barjournals/ialaw0032 and id is 1 raw text is: THE NEWS OF THE BULLETIN Iowa State Bar Association Vol. XXXI, No. 12 Vol. XXXII, No. 1 1 OPINION FROM PROFES- SIONAL ETHICS AND CONDUCT COMMITTEE Re Signing Client's Names to Checks 1. Is an attorney empowered by the attorney-client relationship to endorse his client's name upon a draft received by the attorney for his client and, there- after, negotiate such draft, when the client is a payee thereon? 2. May an attorney act as surety for his client or post a surety bond for his client from the attorney's own funds? In respect to your first question, you are advised that the attorney-client rela- tionship does not invest the attorney with such authority. See Moran v. Loef- fler-Greene Supply Company, 316 P2nd 132 (Okia. 1957) at page 188: An attorney has no implied author- ity to endorse the name of his client to a negotiable Instrument merely because of the relationship of at- torney and client, or because of his rightful possession of a negotiable. Instrument which requires endorse- ment for negotiation. The same is true even if the attorney has an interest in the check by way of fees whieh he Is authorized to retain (emphasis suplied). See Bosacher v. Commereal State Bank, 254 N.W. 824 (Minn. 1934). Statutory authority em-i poweringi an attorney to receipt for a judgment obtained in behalf of his clent and discharge any lien created thereby does not change the situation. Spe Mo- ran v. Loeffler-Greene Supply Company, supra. See, also, Federal land Bank V. Union Bank and Trust Company, 228 Iowa 205, 209 N.W. 512 (1940) holding to the same effect, even though the facts of such case are readily distinguishable from those contained In your question. Accordingly, It is Improper conduct for an attorney to endorse his client's name to a draft and thereafter negotiate such draft without first obtaining such client's written authorization and upon negotia- tion immediately rendering to his client a strict accounting, In writing, of the dis- tribution made of the funds received. Any funds retained for the client must be held Inviolate and cannot by co-min- gled with the personal funds of the at- torney. You are further advised that an attor- ney is prohibited by Sections 621.7 and 682.5 from posting surety for his clients. Such conduct would, therefore, be Im- proper. See In re Pawlowaki, 165 N.E.2d 595 (Ind.) FOR THE COMMMITTEE December, 1971 101 Fleming Building, Des Moines, Iowa 5030 V January, 1972 BOARD OF GOVERNORS IN DECEMBER MEETING RESOLUTION ON NO-FAULT INSURANCE ADOPTED MEMBERSHIP AT ALL TIME HIGH NEW EQUIPMENT FOR HEADQUARTERS OFFICE The third meeting of the Board of Gover- tive Study Committee bill. nors of The Iowa State Bar Association for President Pabst thereupon recognised Dav the year 1971-72 was held at the Des Moines B. McCurnin, Chairman of the Committee, Club, Des Moines, Iowa, on Wednesday, De- orally supplement the written report of cember 1, 1971, beginning at the hour of 10:00 Committee.. The written report of the Cor p.m. mittee reads as follows: President Pabst called the meeting to order MEMO to: Officers and Board of Gove and the Secretary reported a quorum present. nors, Iowa State Bar Associ Thereupon on motion made, seconded and tion unanimously carried, the reading of the min- RE: 'No Fault Insurance in Iowa' utes of the Board of Governors' meeting held At the direction of the Board of Governor on September 10, 1971 was waived and the this Committee has made a detailed stu minutes were approved as heretofore mailed and comparison of some 14 or 15 major au to each member of the Board of Governors, compensation proposals, with the thought NO-FAULT INSURANCE President Pabst advised the Board that a Legislative Study Committee has been study- ing the question of no-fault Insurance and is currently working on a bill prepared by the Iowa Insurance Institute and modeled upon the Illinois no-fault proposal. The Association has been represented at and has attended each of the Legislative Study Committee meetings and all members of the Board have been provided with the minutes of such meetings as they become available. President Pabst pointed out that the Massa- chusetts law went into effect on January 1,. 1971 and that other no-fault insurance propos- als of different types will become effective on January 1, 1972 in Florida, Delaware, Illinois, South Dakota and Oregon. He reported that the Association's Commit- tee on Workmen's Compensation and Casualty Insurance Law had been studying the matter and reminded the Board members that each member of the Board had previously been pro- vided a copy of the bill being studied by the Legislative Committee. Each member of the Board had before him a copy of the report of the Workmen's Com- pensation and Casualty Insurance Law Com- mittee, which had been previously mailed out for study to each member of the Board, to- gether with an additional copy of the Legisla- Id Is r- a- '5 s, dy to in mind of recommending that the Board of Governors give serious consideration to the passing of a resolution approving one of these plans. At a meeting held In Des Moines, October 27, 1971, the Committee agreed, by a ma- jority vote, that the Iowa Bar Association should pass a resolution approving the 'Iowa No-Fault Plan' as proposed by the I.I.I. (an insurance group made up of all the Iowa home offce Insurance companies). A copy of the act as it has been redrafted and in Its present form is attached. Your Committee has recommended that cer- tain comments be made concerning the Iowa No-Fault Plan: (continued on page 5) The Center for Labor and Management Is holding a conference for management personnel in Iowa City on Negotiating and Administering the Labor Agreement, February 29 to March 2, 1972. Included are sessions on preparation, strategy, contract language, arbitration and a ne- gotiation workshop. For further Informa- tion contact Thomas P. Gilroy, Phillips Hall, The University of Iowa, Iowa City, Iowa 52240, (319) 353-4274. V

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