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All Jurisprudence based

0 tracked cards Remedial Law, Legal and Judicial Ethics, with Practical Exercises

On August 8, 2025, Pacifica Foods, Inc. (the principal) executed a Special Power of Attorney appointing its Chief Financial Officer, Paolo Garcia, as attorney-in-fact to handle all matters relating to Pacifica's loan with Global Bank, including receiving notices, collecting payments, negotiating settlements, and to file and sign pleadings, institute, defend, and appeal in any action arising from the loan. The SPA contains no express limits on acts and no revocation clause. Global Bank later files a collection suit against Pacifica, and Paolo, acting under the SPA, signs the verified complaint and appears for Pacifica. On September 15, 2025, Pacifica revokes the SPA by a written notice served on Paolo, but the revocation is not communicated to Global Bank or to the court. Decide: (a) whether Paolo Garcia had authority to file the complaint and sign pleadings for Pacifica; (b) what is the effect of Pacifica's revocation on Paolo's acts and on the ongoing case; and (c) whether Global Bank may rely on the revocation to challenge the validity of the pleadings already filed.

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Paolo Garcia had authority to file the complaint and sign pleadings for Pacifica; because the SPA expressly authorizes him to handle all matters including filing and signing pleadings, and the revocation not communicated to Global Bank or to the court; his acts remain valid and the pleadings stand; Global Bank cannot rely on the revocation to attack the pleadings. The revocation becomes effective against the bank and the court upon receipt of written notice by them; since not received, there is no effect; but the bank could be bound by knowledge. The principal must reappoint an attorney-in-fact in writing to continue litigation. Because the revocation was served only on Paolo, not on Global Bank or the court, the revocation has no effect on either; the bank may proceed as if the SPA were still in force.

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