Hoover v. Wise,
91 U.S. 308 (1875)

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U.S. Supreme Court

Hoover v. Wise, 91 U.S. 308 (1875)

Hoover v. Wise

91 U.S. 308


An account or money demand having been delivered by its owners to a collection agency with instructions to collect the debt, that agency transmitted the claim to an attorney, who, knowing the insolvency of the debtor, persuaded him to confess judgment. The money collected was transmitted to the collection agency, but never reached the creditors. Proceedings in bankruptcy were instituted against the debtor within four months after such confession,

and were prosecuted to a decree. Held that as the attorney was the agent of the collection agency which employed him, and not of the creditors, his knowledge of the insolvency of the debtor was not chargeable to them in such sense as to render them liable to the assignee in bankruptcy for the money collected on the judgment. Quaere would they have been so liable had the money reached their hands?

The facts are stated in the opinion of the Court.

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