Barnes v. Verry

191 N.W. 589, 154 Minn. 252, 31 A.L.R. 707, 1923 Minn. LEXIS 617
CourtSupreme Court of Minnesota
DecidedJanuary 12, 1923
DocketNos. 23,161, 23,160, 23,162
StatusPublished
Cited by26 cases

This text of 191 N.W. 589 (Barnes v. Verry) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barnes v. Verry, 191 N.W. 589, 154 Minn. 252, 31 A.L.R. 707, 1923 Minn. LEXIS 617 (Mich. 1923).

Opinion

Lees, C.

Three judgments of the district court of Wilkin county are involved in these appeals, which were heard and submitted at the same time.

On December 27, 1919, a judgment was entered in the district court of Wilkin county in favor of O. R. Verry and against George B. Barnes for $2,623.80. An execution was issued and a levy made on land in that county. The land was advertised for sale on February 21, 1920. On that day Barnes’ attorney paid to the sheriff $2,718.65, the amount required to satisfy the execution. In 1917 a North-Dakota bank obtained a judgment against Verry for $6,099.88. On February 18, 1920, $3,550 was due on the judgment. On that day the bank assigned the judgment to F. R. Barnes, who is a brother of George B. Barnes. F. R. Barnes immediately commenced an action against Verry in the district court of Wilkin county to [254]*254recover the amount due on the judgment and caused a writ of attachment to be issued and delivered to the sheriff, and on February 20 the sheriff levied on Verry’s judgment against George B. Barnes and on the land about to be sold to satisfy it. On the following day the sheriff made return on the execution, certifying that he had collected $2,718.65 thereon, deducted his fees and expenses, and held the remainder of the money by virtue of the attachment levied on the judgment. ' On February 18, 1920, C. E. Verry assigned his judgment against George B. Barnes to T. R. Verry. The assignment was not filed in the office of the clerk of the district court until February 28, 1920. At the time of the assignment, Verry was actually indebted to the assignee in a sum exceeding $3,000. On February 20, 1920, Lewis E. Jones and W. S. Lauder, as attorneys for O. R. Verry, filed in the office of the clerk of the district court a claim for a lien of $1,010.65 upon their client’s judgment against Barnes. On February 26, 1920, T. R. Verry made a demand on the sheriff for the money he had received on the execution against Barnes. The demand was refused on the ground that F. R. Barnes had attached the money. Thereupon T. R. Verry brought an action against the sheriff to recover the money. He died while the action was pending and Violette M. Verry, as administratrix of his estate, was substituted as plaintiff. Messrs. Jones and Lauder intervened in the action in which C. R. Verry had obtained judgment against Barnes, and claimed so much of the money in the sheriff’s hands as was required to satisfy their lien. There was a trial by the court without a jury of the several issues thus arising.

In F. R. Barnes v. C. R. Verry, the court found that the North Dakota judgment has been assigned to plaintiff on February 18, and that on the same day Verry assigned his judgment against George B. Barnes to T. R. Verry; that, to induce F. R. Barnes to purchase the North Dakota judgment, George B. Barnes gave him his note for $1,250, which was the amount paid for the assignment of the judgment; that in truth George B. Barnes was the purchaser of the judgment and the assignment to his brother was a mere device to defeat the collection of the Minnesota judgment in the case of Verry v. Barnes; that the note had been paid before the trial and that [255]*255at the time of the trial George B. Barnes was the real owner of the North Dakota judgment.

In C. R. Verry v. George B. Barnes, the court found that the attorneys had a lien upon the judgment for the amount they claimed.

In Violette M. Verry v. James Fitzgerald, as sheriff, the court found that plaintiff was entitled to judgment for the money in the sheriff’s hands remaining after the lien of the attorneys had been satisfied.

These appeals are from the several judgments entered on the findings and were taken after motions for new trials had been made and denied.

The court was clearly right in giving Verry’s attorneys judgment for the amount of their lien. An attorney’s lien on a judgment he has secured for his client is superior to the claim of an execution or attaching creditor of the client who levies on the judgment before notice of the claim for the lien has been given. It has long been settled that a party to a cause may not rpn away with the fruits of his attorney’s industry and ability without satisfying the attorney’s just demands. The attorney has a lien on the cause of action from the time of the service of the summons. It continues until it is satisfied or released. It is not necessary that notice of the lien be given to the opposite party or his attorneys. They are required to take notice of it. Henry v. Traynor, 42 Minn. 234, 44 N. W. 11; Lindholm v. Itasca Lumber Co. 64 Minn. 46, 65 N. W. 931; Desaman v. Butler Bros. 114 Minn. 362, 131 N. W. 463; Kubu v. Kabes, 142 Minn. 433, 172 N. W. 496.

It is sought to avoid the application of these principles on the ground that Judge Lauder is a nonresident attorney, not licensed to practice in this state. We deem that fact unimportant. A nonresident attorney may try or assist in the trial or conduct of an action or proceeding pending in a court of this state. Section 4947, G. S. 1913. By usage and comity, the privilege of practicing in all the courts of a state is extended to regularly licensed attorneys of sister states. 6 C. J. 573. But they have no authority to commence actions in the courts of this state, Francis v. Knerr, 149 Minn. 122, 182 N. W. 988, and hence the prevailing practice is to associate a [256]*256resident attorney as the attorney of record. When this is done, as it was here, there is no reason for denying a lien for the compensation the client should pay.

Did F. R. Barnes acquire rights by virtue of the attachment which were superior to those of the Verrys? The findings with respect to the relations between George B. and F. R. Barnes have a material bearing on this question. To all intents and purposes, the former was playing in a double role. He was a judgment debtor whose property had been levied on and was about to be sold, and, at the same time, a judgment creditor seeking to attach a judgment against himself. A judgment debtor may purchase a judgment for the purpose of using it as a set-off, Morton v. Urquhart, 79 Minn. 390, 82 N. W. 653, 15 R. C. L. p. 823, 23 Cyc. p. 1483, but is not entitled, as a matter of right, to off-set one judgment against another, it being discretionary with the court to grant or deny such relief. Lundberg v. Davidson, 68 Minn. 328, 71 N. W. 395, 72 N. W. 71; Martin Co. Nat. Bank v. Bird, 92 Minn. 110, 99 N. W. 780. The procedure here is novel, but, of course, that alone is mot a reason for holding that it was not proper. In Lemane v. Lemane, 27 La. Ann. 694, the court said: “The law tolerates no such absurdity as a judgment creditor seizing a judgment against himself.” In Irvine v. Myers, 6 Minn. 398 (562), this was said:

“It is unncessary to consider the question whether Irvine could levy upon a judgment against himself * * * as we think the judgments should always be offset against each other when they are final between the parties and their rights fixed under them.” And in Martin Co. Nat. Bank v. Bird, supra:
“Such mutual judgments are set off against each other * * * to avoid the unnecessary expense of issuing and levying executions in favor of the respective parties * * * upon the equitable theory that one judgment is to be treated as a practical payment pro tanto of that of the reciprocal judgment creditor.”

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Cite This Page — Counsel Stack

Bluebook (online)
191 N.W. 589, 154 Minn. 252, 31 A.L.R. 707, 1923 Minn. LEXIS 617, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barnes-v-verry-minn-1923.