Promissory Note; Interest; Attorneys; Conflict of Interest
An attorney borrowed almost half-a-million dollars from an aging Client on a long-term note, but failed to make the interest payments on time, which the Client failed to notice. When a relative of the Client became involved in managing his affairs for him, the default was discovered and a demand for full payment of the principle and all past-due interest was made on the attorney. The attorney, however, refused to pay the demand, claiming that the note's compounded interest calculation was illegal, and that a subsequent note, with simple interest only, had been substituted for the original. The Firm was retained, and the full amount of the principle due, plus all interest as provided for in the note, was collected for the Client.
