Caskie v. Philadelphia Rapid Transit Co.

5 A.2d 368, 334 Pa. 33, 1939 Pa. LEXIS 593
CourtSupreme Court of Pennsylvania
DecidedMarch 22, 1939
DocketAppeal, No. 277
StatusPublished
Cited by6 cases

This text of 5 A.2d 368 (Caskie v. Philadelphia Rapid Transit Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Caskie v. Philadelphia Rapid Transit Co., 5 A.2d 368, 334 Pa. 33, 1939 Pa. LEXIS 593 (Pa. 1939).

Opinion

Opinion by

Mr. Justice Maxey,

The plaintiff, a member of the bars of the States of Pennsylvania and New York, brought an action in assumpsit against the Philadelphia Rapid Transit Company (hereafter called the P. R. T.) to recover $40,000 paid to that company by the International Railway Company of Buffalo, N. Y. (hereafter called the Buffalo Company). The action is not based on privity of contract, but is for money had and received by the P. R. T. by alleged fraud. The amended statement sets forth that the plaintiff had a contract of employment with the P. R. T. from 1919 to 1930, and that for the last four years of that period he was retained by the defendant as its general attorney “in charge of negligence and claims,” for which services he was paid by the defendant. He averred that by verbal arrangement with T. E. Mitten, President of the P. R. T. (who, it was averred, had the authority so to agree), he was free to serve other clients than the defendant and to be com[35]*35pensated by such other clients for such services. He averred that in 1922, through the chairman of its Board of Directors and its executive committee, T. E. Mitten, (he being the same T. E. Mitten who was President of P. R. T.), the Buffalo Company retained him (the plaintiff) as its attorney to direct and supervise the prosecution of “actions in relation to illegal motor vehicle competition,” and the prosecution of “striking and dissatisfied employees, for dynamiting outrages committed on the property and passengers of the Buffalo Company.” Plaintiff averred he was retained “as its general attorney, by verbal agreement” and that he “should be reasonably compensated . . . for his legal services” by the Buffalo Company and that the latter company “had full knowledge that plaintiff was also employed” by the P. R. T. and that the employment with the Buffalo Company was undertaken “with the knowledge and consent” of the P. R. T. and that by verbal agreement with T. E. Mitten, President of P. R. T., the fees paid to plaintiff by P. R. T. “were not to cover and did not include his legal services to the” Buffalo Company and that he was “free to charge the latter” for such services as he might render as attorney-at-law.” He set forth the nature of his services to the Buffalo Company in the sum of $200,000 for his legal services to it and within one month thereafter, the Buffalo Company “severed its connections with plaintiff.”

Plaintiff then sets forth as his cause of action what we have heretofore reviewed and summarized in Caskie, Aplnt., v. P. R. T., 321 Pa. 157, 159, 184 A. 17 (which arose from a judgment in favor of defendant on an affidavit of defense raising questions of law), as follows: “Defendant and International Railway Company with knowledge of those facts, fraudulently conspired (by representing that defendant and not plaintiff was entitled to the compensation payable for the services) to refuse to pay plaintiff’s claim, and, instead, to pay to defendant the sum of $40,000 as compensation for the [36]*36services rendered by plaintiff, thereby unjustly enriching itself in that amount in circumstances in which the law implied a promise on defendant’s part to pay said sum to plaintiff. ... In holding that no cause of action was pleaded, the learned court below said: ‘The difficulty with plaintiff’s case is that defendant does not have in its hands money belonging to plaintiff, but money which belongs either to defendant or to International Railway Company. Plaintiff’s right of action against the International Railway Company continues unimpaired.’ ” We held: “The judgment [on the pleadings] must be reversed. ... In Angle v. C., St. P., etc., Ry. Co., 151 U. S. 1, 13, Brewer, J., said: ‘It has been repeatedly held that, if one maliciously interferes in a contract between two parties, and induces one of them to break that contract to the injury of the other, the party injured can maintain an action against the wrongdoer.’ . . . For such interference an action in tort lies. Or, the injured party may elect to redress the wrong in assumpsit for restitution of what the tort-feasor received.” We ruled that defendant’s “speaking demurrer” was “bad” and declared that “defense on the merits is not before us.”

After trial, a verdict was rendered for the plaintiff in the sum of $58,333, but upon motion the court entered judgment for the defendant n. o. v. This appeal followed.

Plaintiff served the Buffalo Company seven years, during which period he received no compensation from it but did receive $25,000 annually from the P. R. T. He collected nothing from the Buffalo Company for his services. In the early days of his service to that company, the latter paid the P. R. T. $4,000 on account of Caskie’s services. Caskie testified: “When that was brought to my attention [in 1923], I told the Chief Clerk that my salary was not to be billed in that way. ... I told them I would speak to Mr. Mitten about it. . . . After I spoke to Mr. Mitten the billing was stopped and [37]*37it was never billed again during the remaining 5 or 6 years that I was in Buffalo.” He also testified that in 1924 he told Mr. Mitten that he “would like to have something on account of my services up to date on the jitneys and the dynamiting and on the other things and he said he would have Mr. Tully and Mr. Weber come down from Buffalo and that we would confer upon the figure that I should receive for my services up to that time.” From the testimony it is clear that before 1929 neither the plaintiff nor the defendant pressed any claim against the Buffalo Company for Caskie’s services to the latter. Plaintiff waited over seven years before asserting his claim against the Buffalo Company in the manner one would reasonably expect such a claim to be asserted. P. E. T. waited one month longer. The death of Mr. Mitten on October 1, 1929, brought things to a head. On December 4, 1929, Caskie presented his bill to the Buffalo Company, and on January 3, 1930, P. E. T. presented its bill to the same company for Caskie’s time, and 19 days later received the Buffalo Company’s check for $40,000.

In its opinion entering judgment for the defendant, the court below conceded that in view of the verdict of the jury, it was established that the plaintiff rendered valuable services to the Buffalo Company, for which it agreed to pay him, quantum valebant, and that while the contract “was not shown to have been made expressly . . . there was ample evidence of its ratification.” The court also said that it must accept “as fact” that the plaintiff was not a party to any arrangement between the two companies involved in the case as to any “lending agreement” between them in respect to their employees, and that if there was such an agreement, the plaintiff as an attorney-at-law was not intended to be included in it and was not included.

The court below found that “the question raised is very simple: Did the two companies fraudulently conspire, by representing that defendant, P. E. T. and not [38]*38plaintiff was entitled to compensation [by the Buffalo Company] to refuse to pay defendant the sum of $40,000 as compensation for the services rendered by plaintiff?” The court answered the question thus posed by saying in substance: If there was a contract between plaintiff and the Buffalo Company, it was binding upon the latter, and likewise if there was a contract between the latter and P. R. T. for plaintiff’s services, it would be no interference with the first contract.

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Cite This Page — Counsel Stack

Bluebook (online)
5 A.2d 368, 334 Pa. 33, 1939 Pa. LEXIS 593, Counsel Stack Legal Research, https://law.counselstack.com/opinion/caskie-v-philadelphia-rapid-transit-co-pa-1939.