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Ds were partners engaged in the general practice of law. P was their client. Fitzsimmons took care of P's business. P disclosed that she owned valuable securities, whereupon Fitzsimmons immediately suggested that she sell them and turn the money over to the firm, saying that they would invest for her in good mortgages and send her the interest every six months. P endorsed to Fitzsimmons a check for the proceeds of her securities, $28,253, which he deposited in his personal bank account. He gave the firm's bookkeeper $350 for legal services unconnected with this transaction. For a number of years, he sent her a check every January and July for an amount equal to three percent. of the principal sum. In 1931, he paid P $7,000 and thereafter through 1937 continued to pay her interest on $20,500. The law firm was dissolved at the end of 1932. In January 1938, Fitzsimmons was arrested for embezzlement. No mortgages or other securities representing P's $20,500 have been discovered. Fitzsimmons was insolvent. Ds were entirely ignorant that P had entrusted him with any money, or had any dealings with him except for ordinary law work. Ds did not suspect or have reason to suspect him of improper conduct in this or other matters until long after the partnership was dissolved.

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