Baker v. Tullock

77 P.2d 1035, 106 Mont. 375, 1938 Mont. LEXIS 24
CourtMontana Supreme Court
DecidedMarch 19, 1938
DocketNo. 7,768.
StatusPublished
Cited by12 cases

This text of 77 P.2d 1035 (Baker v. Tullock) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baker v. Tullock, 77 P.2d 1035, 106 Mont. 375, 1938 Mont. LEXIS 24 (Mo. 1938).

Opinion

MR. JUSTICE ANGSTMAN

delivered the opinion of the court.

Herbert L. Phelps recovered judgment against the Union Central Life Insurance Company. Plaintiff Baker acted as attorney for Phelps. On appeal the judgment was reversed and the cause remanded for a new trial. (Phelps v. Union Central Life Ins. Co., 105 Mont. 195, 71 Pac. (2d) 887.) The insurance company then filed a cost bill and obtained judgment against Phelps for its costs on that appeal. It then caused execution to be issued and placed in the hands of defendant Tullock, sheriff of Fergus county, and defendant McPherson, sheriff of Valley county, who levied upon the cause of action of Phelps against the insurance company. Plaintiff Baker thereupon served notice upon defendants of a claim for $952.50, for attorney’s fees for services rendered in the action, and claimed a lien on the cause of action, and brought this action to enjoin the defendants from selling it.

*377 On the filing of the complaint and a supporting affidavit an order to show cause and a temporary restraining order were issued. Defendants thereupon filed a motion, supported by affidavit, to dissolve the temporary restraining order. After hearing, the motion was denied and the restraining order made effective pendente lite. This appeal followed.

The correctness of the court’s decision depends partially upon the construction to be placed upon section 8993, Revised Codes. It provides: “The compensation of an attorney and counselor for his services is governed by agreement, express or implied, which is not restrained by law. From the commencement of an action or the service of an answer containing a counterclaim, the attorney who appears for a party has a lien upon his client’s cause of action or counterclaim, which attaches to a verdict, report, decision, or judgment in his client’s favor, and the proceeds thereof in whosesoever hands they may come; and cannot be affected by any settlement between the parties before or after judgment.”

Defendants contend that section 8993 gives merely an inchoate right to a lien, but that the lien of the attorney does not actually attach until there has been a verdict, report, decision, or judgment in his client’s favor. Plaintiff contends that the lien attaches from the commencement of the action and attaches to the cause of action, and thereafter also attaches to the verdict, report, decision, or judgment in his client’s favor.

Section 8993 is a remedial statute which should be construed in advancement of the remedy, and “so as to secure and protect, and not defeat, the rights and objects intended by its provisions.” (Crowley v. Le Duc, 21 Minn. 412.) It is competent for the legislature to provide for an attorney’s lien on the client’s cause of action even though the cause of action is “an intangible, incorporeal something,” and “the lien which the statute fixes on the plaintiff’s right of action follows the transition, without interruption, and simply attaches to that into which the right of action is merged. If the judicial recovery is obtained, the lien attaches to that; if a compromise agreement is made, the lien attaches to that; and in each case *378 the attorney’s interest is such that it cannot be defeated or satisfied by a voluntary payment to his client without his consent.” (Illinois Central R. Co. v. Wells, 104 Tenn. 706, 707, 59 S. W. 1041, 1043; and compare Tompkins v. Nashville, Chattanooga & St. Louis R. Co., 110 Tenn. 157, 72 S. W. 116, 61 L. R. A. 340, 100 Am. St. Rep. 795)

The clause in our statute which starts with the words “which attaches” was not intended to restrict but to enlarge or extend the attorney’s lien. Without the clause there was room for doubt as to whether the lien would extend to the verdict, report, decision, or judgment. After judgment is recovered, the cause of action is merged in the judgment, and for that reason we think the legislature added the phrase to make sure that the lien which theretofore existed on the cause of action should attach to the judgment and thereafter to the proceeds of the verdict, report, decision, or judgment. Such is the interpretation of an identical statute made by the supreme court of Missouri. (Young v. Levine, 326 Mo. 593, 31 S. W. (2d) 978; Noell v. Missouri Pac. R. Co., 335 Mo. 687, 74 S. W. (2d) 7, 94 A. L. R. 684.)

In Schempp v. Davis, 201 Mo. App. 430, 211 S. W. 728, 730, the court, in speaking of an identical statute, said: “The attorney’s lien is not only on the cause of action — which includes both his client’s right.and the proceeding for redress — but also on the proceeds of that cause of action successfully enforced. In other words, the lien extends to the fruits of that successfully enforced cause of action.” This court has also held that an attorney may assert his lien prior to judgment. (Walsh v. Hoskins, 53 Mont. 198, 162 Pac. 960.)

Defendants contend that if plaintiff has a lien on the cause of action, there is nothing to prevent the defendants from selling the cause of action subject to the lien. Plaintiff contends that under sections 8283 and 8285, Revised Codes, before defendants may sell the cause of action they must pay or tender to plaintiff the amount of his lien. Whether sections 8283 and 8285 have application here we need not determine. This court has held that a cause of action is subject to execution (State *379 ex rel. Coffey v. District Court, 74 Mont. 355, 240 Pac. 667), excepting those based upon tort. (Coty v. Cogswell, 100 Mont. 496, 50 Pac. (2d) 249; Toole v. Paumie Parisian Dye House, 101 Mont. 74, 52 Pac. (2d) 162.)

In the Coffey Case it does not appear that there was any objection to the sale other than upon the ground that the procedure in making the levy and sale was not proper. The sale was held to have been improperly made, and it was set aside. The court held that a cause of action was subject to execution, levy, and sale. But there no one was objecting to the sale, as here. In executing the writ, the sheriff with reference to things in action may either collect or sell them. (See. 9431.) He has discretion to do either. His discretion can be controlled by the court. The most effective way to accomplish the collection of a thing in action is to permit the pending action to go to trial on the merits. The sale of a cause of action at public auction is a poor method of ascertaining its value.

So far as the case before us is concerned, we hold that the trial court did not abuse its discretion in enjoining a sale of the cause of action under execution. Attorneys are prohibited from buying a thing in action with the intent and for the purpose of bringing an action thereon. (Sections 8980 and 8981.) This would perhaps prevent them from buying a pending cause of action. Had the cause of action been sold at execution sale, it is extremely unlikely that anyone but defendant would have offered a bid.

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Cite This Page — Counsel Stack

Bluebook (online)
77 P.2d 1035, 106 Mont. 375, 1938 Mont. LEXIS 24, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baker-v-tullock-mont-1938.