My hub had power of atty over financial matters relating to bro's house. Bro was in prison and he had some bad tenants living in the house who didn't always pay rent, which was supposed to cover mortgage. Also, we found out that bro had a lien put on the house as "bond" for fellow prisoner so that now debt agains the house was in excess of value of house. Eventually, payments fell behind (hub and I made mortgage payments for a while when tenants paid -- and sometimes when they didn't), but eventually it became too expensive to stay "caught up" and the bank was really unforgiving. Hub decided best policy was to foreclose on home and be released from the liability. Amazingly, the house sold at foreclosure for slightly more than debt (Bondsman releasd part of lien) and the proceeds were returned to brother. Now, bro wants to sue bank for foreclosing, and also sue hub for breach of fiduciary respoinsiblity because we didn't keep paying the mortgage for him.
2007-07-22 04:42:54 · 9 answers · asked by EstherD 2 in Politics & Government ➔ Law & Ethics
He can sue, if he wishes. Nothing will come of it, but he can file suit. Power of attorney doesn't make you liable for brother's debts. It merely give you a legal way to handle the brothers affairs. Tell the brother to screw off. If my brother tried that, AFTER I'd gone out of my way to try to help him, I'd have one fewer siblings, at least in my mind. I'd write the butthead off, and never have anything to do with him again. EVER.
2007-07-22 06:02:15 · answer #1 · answered by Anonymous · 2⤊ 1⤋
A person who holds a power of attorney is an "agent." An agent owes his principal an obligation to advise the principal of significant events pertaining to the agency. If hub did not advise bro of problems with non-paying tenants, then hub breached that duty.
So there is potential exposure. Nothing can be done about it at this time. Perhaps bro will be inside for a while longer, long enough for the statute of limitations to run out. (It's usually between three and seven years, and it varies from state to state.) The decision to let the house go in foreclosure should have been made by bro. But if his suit is based on your not paying the mortgage, I would adopt a very straightforward defensive technique: depending on what is in the complaint, I would serve an answer admitting all the factual allegations of the complaint "insofar as hub is concerned." I would not serve any discovery notices. I would wait thirty days to give bro time to file his own discovery notices, and when he did not, I would file the paperwork to put the case on the calendar. Then sit back, wait for trial, and blow him out of the water because it will then be too late for him to change his complaint, and he will not be able to prove you had any duty to pay the mortgage beyond the money collected from the tenants.
2007-07-30 09:59:49 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Power of attorney gives someone the legal authorization to act in the first person's name, and to sign legal paperwork for them.
It does not impose any obligation to do so, though other agreements, contracts or trustee relationships might impose those obligations.
Hub didn't have a fiduciary duty merely because he had POA. Hub may have had an implied fiduciary duty, depending on the laws of the state, but that would arise because of some statutory presumption in the relationship, and not from the POA itself.
2007-07-22 11:55:08 · answer #3 · answered by coragryph 7 · 5⤊ 0⤋
Your husband, as Power of Attorney, is only in control of his brothers financial matters; he is not legally obligated to use his own money to pay any debts.
Your brother can try suing your husband but he won't win. When he gave your husband Power of Attorney he gave him complete authority over all financial matters. As long as your husband acted in good faith in what he believed was in the best interest of his brother than he fulfilled his obligations as Power of Attorney. Suits are usually only be brought against someone with PoA if the person with PoA abused his legal authority for his own personal gain.
He absolutely cannot sue the bank. They foreclosed at the request of the person with the legal authority to request the foreclosure and so are completely within the law.
2007-07-22 11:53:20 · answer #4 · answered by Judy L 4 · 3⤊ 0⤋
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Peace be with you
2007-07-29 13:14:07 · answer #5 · answered by Eric S 1 · 0⤊ 1⤋
Maybe that thinking is why he is in prison, your husband is not financially responsible for your brothers mess. Courts don't look to kindly on biting the hand that feeds you. Good luck and stay away from that brother.
2007-07-29 13:53:53 · answer #6 · answered by Follow the money 7 · 1⤊ 0⤋
Power of attorney does not obligate one to pay debts with one's own funds. This document gave your husband the right to carry on his brother's financial affairs, with his brother's funds.
2007-07-22 11:47:25 · answer #7 · answered by browneyedgirl623 5 · 2⤊ 0⤋
POA has to do only such acts as defined in the document.
2007-07-30 09:58:19 · answer #8 · answered by jittender k 4 · 0⤊ 0⤋
Only if you are a Democrat
2007-07-30 11:36:35 · answer #9 · answered by Anonymous · 0⤊ 0⤋