Limitations: Can A Holder Of Powers Of Attorney Sue Or Defend On Behalf Of The Donor?

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The unanswered Question: 

Despite the many opinions and articles on this topic, many have left a question hanging on the extent to Which Powers Of Attorney Give A Donnee, Power To Sue On Behalf Of The Donor. Can The Donnee Sue Or Defend On The Donor's Behalf? Can He Appear In Court As Claimant Or Defendant On The Donor's Behalf?

A Power Of Attorney Is A Legal Document That Allows One Person To Act On Behalf Of Another. It Is Often Used In Legal, Financial, Or Medical Matters. Powers Of Attorney Can Be General Or Limited. By The Supreme Court Holding In Fredrick Zabwe V. Orient Bank (U) Ltd. SCCA No. 4/2006, It Is Imperative To Note That A Donee Of A Power Of Attorney Acts As An Agent Of The Donor And Should Do So For The Donor's Benefit. Well, More About Powers Powers Of Attorney Is Well Covered In Other Writings.

In A 2021 Decision By The Supreme Court Of New York, Appellate Division Second Department In Discover Bank V. Gilliam 199 A.D.3d 645 (N.Y. App. Div. 2021), The Bank Sued The Defendant To Collect On An Unpaid Credit Card Balance. It Filed A Complaint And Then A Motion For Summary Judgment Asking The Court To Rule That The Defendant Was Liable For The Money. The Defendant’s Husband, Who Had Been Appointed As His Wife’s Attorney In Fact/Agent, Filed An Answer To The Complaint And Opposed The Summary Judgment Motion On Her Behalf Without Hiring An Attorney.

The Trial Court Struck The Answer And Opposition To The Motion Filed By The Husband And Granted Summary Judgment To The Bank On The Grounds That The Husband Could Not Appear Pro Se As The Attorney-In-Fact Of His Wife. The Appellate Division Agreed With The Trial Court’s Decision To Strike The Answer And Opposition. However, In A Show Of Leniency, The Appellate Court Reversed The Grant Of Summary Judgment, And Instead Sent The Case Back To The Lower Court To Give The Husband The Opportunity To Hire An Attorney Or Allow The Wife To Appear Pro Se On Her Own Behalf.

Both A Principal And Agent Must Understand The Scope Of An Agent’s Powers And Should Consult A Lawyer For Advice. If You Need Assistance With A Power Of Attorney Or Other Estate Planning, Contact One Of an Attorney.

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