Corporations

Brief

Hayes v. National Service Industries

Procedural History:

• District Court overruled Hayes’ objections, and adopted the report and recommendation of the Judge, agreeing that Rogers had apparent, if not actual authority to settle Hayes’ claim.
• Appealed.
• Affirmed.

Facts:

• Hayes sued National Service Industries alleging wrongful discharge as a sales representative.
• The attorneys for the two sides settled the case.
• Plaintiff then contends that she did not consent to her attorney Rogers settling the case.
• Hayes filed the objections claiming that she did not give Rogers the authority to settle the case on her behalf.

Issue:

• Did the attorney have actual or apparent authority to settle the case on behalf of his client?

Holding:

• Yes.

Reasoning:

• An attorney of record is the clients agent in pursuing a cause of action and under Georgia law, “an act of an agent within the scope of his apparent authority binds the principle.”
• Hayes’ attorney spoke with counsel for Nation and expressly told Morgan that he had authority from Hayes to settle the case for %15,000.
• According to Georgia law, an attorney has the apparent authority to enter into a binding agreement on behalf of a client and such agreement is enforceable against the client.