Ahalt v. Gatewood

198 P. 970, 109 Kan. 328, 1921 Kan. LEXIS 135
CourtSupreme Court of Kansas
DecidedJune 11, 1921
DocketNo. 23,232
StatusPublished
Cited by10 cases

This text of 198 P. 970 (Ahalt v. Gatewood) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ahalt v. Gatewood, 198 P. 970, 109 Kan. 328, 1921 Kan. LEXIS 135 (kan 1921).

Opinion

The opinion of the court was delivered by

West, J.:

In 1906 the defendant Rawlings Gatewood gave the plaintiff, a resident of Oregon, three promissory notes for $6,617, bearing interest at ten per cent. Each note contained a provision that in case of suit to collect it the maker promised “to pay such sum as the court may adjudge reasonable as attorney’s fee in said suit or action.” The notes were made payable in Oregon.

Nelson Case, in 1907, brought suit on these notes in Labette county, taking judgment for $7,774.65 with interest at ten per cent. The summons was indorsed with the amount sued for [329]*329and costs of suit “and $661.70 as attorney’s fee for collection”; and below the clerk’s signature this indorsement was made: “Nelson Case, Oswego, attorney for plaintiff.” The defendant was personally served. In 1908, the plaintiff made proof of his allegations, and the court found generally in favor of the plaintiff and rendered judgment for $7,774.65, with ten per .cent interest and costs and an attorney’s fee of $300, which it directed to be taxed as part of the costs in the case. Mr. Case appeared as sole attorney for the plaintiff and was never discharged as such attorney and has never received any compensation for his services. In May, 1919, the plaintiff, for $900, assigned this judgment to Sophia Gatewood, the defendant’s wife, who had execution issued and sale made and bought in the property for $4,500. She paid in cash only the amount of the court costs, the printer’s fee, fee for notice of sale, and the sheriff’s fees, amounting in all to $61.91, retaining the balance of the $4,500 to be applied as a credit on the judgment. On June 8, 1919, Mr. Case filed a motion for an order to direct the proper officer to pay him the attorney fee allowed by the court. May 4, 1920, he filed another motion to require the purchaser at sheriff’s sale to pay into court the amount of the'attorney’s -fee for his use, and in default of such payment the sale to be set aside. On May 28, 1920, Sophia Gatewood, the purchaser, moved for confirmation. June 11,1920, Mr. Case combined his two motions into one which he then filed, asking that the sale be not confirmed until the purchaser paid into court a sufficient sum to pay him the attorney fee, and asking, further, that the court require the sheriff to collect and pay into court the amount of such fee for his use, and that otherwise the sale be not confirmed. The three motions were presented at the same time and argued and taken under advisement. Afterwards, the combined motion of Mr. Case was overruled and the motion for confirmation sustained, and from these orders this appeal is taken.

Mr. Case contends that the attorney fee contract was made for his benefit, was one which he can enforce, and that the judgment for such fee, or the fee so allowed by the judgment, belongs to him. He argues that the common law recognizes two classes of attorney’s liens, the retaining and the charging; that his lien partakes of the nature of both; and that the statu[330]*330tory lien, which is of later origin, does not supplant or impair the common-law remedy, but is an additional and supplemental remedy. He argues that his lien so far as considered a charging lien is an equitable right to the fee and costs due him for services and that he is regarded as an equitable assignee of the judgment, based on the principle that the plaintiff should not be allowed to appropriate the whole of the judgment without paying for the services of his attorney in obtaining it. He argues, further, that the assignment should not destroy his right to his remedy, and contends that the assignee took subject to the lien of the attorney through whose services the judgment was secured.

The defendant contends that the judgment was not in favor of Mr. Case, but of his client; that the assignment had the effect of ending his employment as attorney in the matter, and that Mr. Case is not a party to this litigation; and further, that he has not complied with the Kansas statute by serving notice of his lien as required.

Of course, strictly speaking, the judgment was in favor of the plaintiff, and not the plaintiff’s attorney, although that part now in controversy was expressly termed an attorney’s fee in the journal entry, and the summons in' the action asked for an attorney’s fee.

Whether the assignment ended the matter and whether Mr. Case has a right to be considered a party need not now be determined.

The effect of our statute prohibiting a contract o.r judgment thereon for attorney’s fee embodied in a note or similar instrument is not invoked by either party and will, therefore, not be considered.

The serious and controlling question in the case is whether the right to the fee and lien can be invoked without having complied with our statute. This statute (Gen. Stat. 1915, § 484) provides that—

“An attorney has a lien for a general balance of compensation upon any papers of his client which have come into his possession in the course of his professional employment, upon money in his hands belonging to his client, and upon money due to his client and in the hands of the adverse party, in any matter, action or proceeding in which the attorney was employed, from the time of giving notice of the lien to the party; . .

[331]*331Section 485 provides that—

“Where any judgment has or may be collected or paid to the clerk of any court rendering the same, on execution or otherwise, upon which an attorney’s lien is claimed, the court in which such judgment was or is rendered may in term-time, or the judge of said court at chambers, without formal pleadings on application of any party interested, determine the amount due on said attorney’s lien, if any, and make an order for the distribution of said moneys according to the respective rights of the parties.”

It would seem by the language of section 484 that the legislature must have intended to cover both kinds of common-law liens, the retaining and charging. Of course, an attorney cannot be required to deliver possession of his client’s papers or money which have come into his hands in the course of his employment until the client settles with him for his fees. But that matter is not involved here, this being an affirmative action on the part of the attorney to enforce what might be called his charging- lien.

The retaining lien is said to be an attorney’s right to retain possession of all papers and money of his client coming into his hands professionally until a general balance due him for services is paid. This is said to have been recognized from earliest times. "It is of common-law origin, and the statutes providing for it, and for its enforcement are merely declaratory of the common-law rule.” (6 C. J. 766, § 363.)

The special or charging lien is said to be an equitable right to have the fees and costs due the lawyer for his services in an action secured to him out of the judgment therein—

“The attorney, to the extent of such services, being regarded as an equitable assignee of the judgment. It is based on the natural equity that the plaintiff should not be allowed to appropriate the whole of a judgment in his favor without paying thereout for the services of his attorney in obtaining such judgment.” (6 C. J. 766, § 364.)
“A retaining lien is complete and effective without notice to any one.

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Cite This Page — Counsel Stack

Bluebook (online)
198 P. 970, 109 Kan. 328, 1921 Kan. LEXIS 135, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ahalt-v-gatewood-kan-1921.