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Professional Responsibility Keyed to Martyn
Greycas, Inc. v. Proud
Citation:826 F.2d 1560 (7th Cir. 1987)
Greycas, Inc. (Appellee) filed a legal malpractice suit against Theodore Proud (Appellant), an attorney in Illinois, arguing that Proud’s misrepresentations in his capacity as attorney to Crawford, a party in opposition to Greycas, were actionable in court. Crawford had needed capital for his farm business and sought to use his machinery as collateral, and he retained Proud to draft a letter stating he had completed a records search and was satisfied that the machinery had no prior security interests. Proud did so, even though he had not performed a search. Greycas issued Crawford a loan, and when Crawford defaulted, Greycas found that the machinery was in fact subject to a prior security interest.
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