Cary v. Western Union Telephone Co.

20 Abb. N. Cas. 333
CourtNew York Supreme Court
DecidedJanuary 15, 1888
StatusPublished
Cited by8 cases

This text of 20 Abb. N. Cas. 333 (Cary v. Western Union Telephone Co.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cary v. Western Union Telephone Co., 20 Abb. N. Cas. 333 (N.Y. Super. Ct. 1888).

Opinion

Van Brunt, P. J.

The plaintiffs in this action were attorneys and counselors of this court, and this action was brought to recover compensation for services rendered to the defendants in advising and consulting with the defendants concerning certain proposed tax legislation of the Legislature of the State of Hew York, and in advising and consulting with the attorney-general and comptroller of the State in behalf of the defendant respecting such legislation and. making arguments before said attorney-general and comptroller resulting in the adoption of said proposed legislation as a department measure by the comptroller’s office, and for services in negotiating and accomplishing the settlement of certain tax litigations pending against the defendant.

The answer of the defendant denies the contract as alleged, and further answering admits that certain services were rendered by one of the plaintiffs, Cary, but alleges that they were not of the value of over $500, and denies that the services so rendered by Cary were rendered upon a formal retainer or an actual contract, or that payment should [337]*337be made therefor. By consent the case was referred, and the referee reported in favor of the plaintiff, finding the value of the services to have been $5,000.

It is claimed upon the part of the defendants that the services for which compensation is sought were based upon an illegal contract, and that therefore no recovery could be had therefor.

The learned referee in his opinion in dealing with this objection states that no such defense is set up in the answer and that the testimony which led to the point being raised carne up incidentally. The fact that no such defense is set up in the answer formed no objection to its consideration.. Under the general denial contained in the answer the defendants had a right .to establish, such facts as would show that no valid contract had ever been entered into between these parties. This subject seems to have been considered in the case of Oscanyan v. Arms Co. (103 U. S. 261, 264), in which the court say: “ The position of the plaintiff that the-illegality of the contract in suit cannot be introduced because not formally pleaded, does not strike us as having-much weight. We should hardly have deemed it worthy off serious consideration had it not been earnestly pressed upon, our consideration by learned counsel. The theory upon, which tlie action proceeds is that the plaintiff has a contract, valid in law for certain services. Whatever shows the invalidity of the contract, shows that in fact no such contract, as alleged ever existed.”

A consideration, of the effect of a general denial in- ai case which presents precisely the same principle may serve-to illustrate the question under review. The complaint" , alleges a contract. The answer denies it. The plaintiff.' proves an oral contract which, by the statute of frauds, is. required to be in writing or proves a contract in writing not subscribed as required by that statute.

The defense under a general denial that there was no-valid contract would clearly be available, and that is all that is sought to be established in the case at bar. The plaintiff [338]*338.alleges a contract, and in his proof of the contract introduces evidence which shows its invalidity. Under a general denial the defendant may avail himself of this evidence, and (insist that his denial has been established in that no legal or ■¡valid contract has been proven.

This brings us to the consideration of the question 'whether the plaintiffs established any valid contract authorizing them to recover for the services which they rendered •to the defendant. It appears from the evidence that the (State bad recovered a jndgmentfor taxes under the laws of 1880 against the defendant for a very large amount of money, and the defendants were anxious in regard to the ■result of a decision in the court of appeals, to which court :the case was upon its way.

The president then requested the plaintiff'Cary to go to .Albany and see if some relief could be obtained from -the State officers in view of the claimed injustice of the 'judgment. The plaintiff went to Albany, saw the comptroller and attorney-general, who informed him they could .do nothing in the premises. He then associated himself with'his-.co-plaintiff, Mr. Wells, and they took-up the interest-of-certain mining companies who were affected in the ;same way with the telegraph companies under the tax law (referred to. The plaintiff and Mr. Wells went, to Albany ¡and made arguments there before the attorney-general on behalf of the mining companies with a view to the passage -of an act which they proposed to introduce which would •relieve the mining companies from the tax. Upon discussion with 'the officers of the defendant they were requested to include the defendant, if possible, in the bill which they, bad then already prepared on behalf of the mining com'-panies. To this they consented, and the plaintiff Cary wont to Albany and had interviews with the comptroller and attorney-general. At these interviews he sought to get the State •officers to adopt this bill as a department measure.

This they agreed" finally to do, upon the defendant settling up the original judgment. Thereafter Mr. Cary went [339]*339two or three times to Albany, and on one or more occasions after the bills had been proposed, saw prominent members of both branches of the Legislature, explaining the bill to them, and urging them to take an interest in its passage, or to facilitate its passage as best they could. For these services a charge of $5,000 was made which was found by the referee to be reasonable.

From this testimony it appears that compensation for these services was allowed by the referee, consisting of personal solicitation of the heads of departments and members of the Legislature. No other construction can be placed upon the testimony offered on the part of the plaintiff, and services of this kind have been repeatedly held in the United States courts, and in the courts of this State to entitle the party to no compensation, because contracts for such services are against public policy, and not enforceable in courts .of law.

In the case of Mills v. Mills (40 N. Y. 543) it was held that such a contract was void as against public policy, in that it furnishes a temptation to the plaintiff to resort to corrupt means or improper devices to influence legislative action. In the case of Sedgwick v. Stanton (14 N. Y. 289, 294) the grounds upon which the invalidity of such a contract rest are set forth with great distinctness and precision. The court say : “ Persons may no doubt be employed to conduct an application to the Legislature, as well as to conduct a suit at law ; and may contract for and receive pay for .their services in preparing documents, collecting evidence, making statements of facts, or preparing and making oral or written arguments, provided all these are used, or designed to be used, before the Legislature itself or some committee thereof as a body ; but they cannot with propriety be employed to exert their personal influence with individual members, or to labor in any form, privately, with such members out of the legislative halls. Whatever is laid before the Legislature in writing, or spoken openly or publicly in its presence or that of a committee, if false in fact may be [340]

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Bluebook (online)
20 Abb. N. Cas. 333, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cary-v-western-union-telephone-co-nysupct-1888.