Chase v. Hansen

512 P.2d 997, 266 Or. 225, 1973 Ore. LEXIS 349
CourtOregon Supreme Court
DecidedAugust 2, 1973
StatusPublished

This text of 512 P.2d 997 (Chase v. Hansen) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chase v. Hansen, 512 P.2d 997, 266 Or. 225, 1973 Ore. LEXIS 349 (Or. 1973).

Opinion

HOLMAN, J.

This is an action by an attorney to recover fees for services rendered to the defendant and others arising primarily out of representation before the Federal Communications Commission. Defendant appeals from a judgment for plaintiff pursuant to a jury verdict.

Plaintiff sought recovery under the theories of express contract, account stated, and quantum meruit. [228]*228Defendant answered with a general denial and the affirmative defense that the fees were the obligations of others and the statute of frauds therefore applied. The case was consolidated for trial with an action by plaintiff for the recovery of fees from W. H. Hansen, the father of the present defendant. In most instances the services which generated the claim in each case were the same. A judgment was also secured against the father, but it was not appealed.

Defendant’s father had interests in various radio stations and in applications for permission to operate radio stations in southern Oregon and northern California. He had been represented for years by plaintiff, who specialized in and practiced communication law in Washington, D. C. The father came under investigation in the late 1960’s because of alleged misrepresentations to the Federal Communications Commission and violation of its regulations. As a result, the father’s applications for and his interests in the radio stations became jeopardized.

Defendant was the record owner of Station KCNO in Alturas, California, and his permit to operate that station also became jeopardized because the Commission claimed his father to be the actual owner of that station. KCNO was the most valuable of all the properties because it was the only station which was in actual and profitable operation. The principal bases for questioning the defendant’s actual ownership of KCNO were (1) defendant’s father furnished the money for the purchase of the station and (2) he operated it and took all the profits. The defendant did not live in Alturas, the location of the station, but in Medford, Oregon, where he taught school.

At the conclusion of the Commission’s investí[229]*229gations, formal charges were filed against both father and son and also against the father and other shareholders of Medford Broadcasters, Inc., one of the stations in which defendant’s father had an interest. A joint hearing was ordered in Medford and Alturas on all matters of interest to defendant’s father as well as on defendant’s permit to operate KCNO. When it was learned that KCNO and defendant would be parties to the hearing, it was decided that plaintiff should represent defendant as well as most of the other parties to the proceeding. Most of the fees and expenses in question arose out of preparation for and the trial and appeal of these hearings. The original hearing resulted in a refusal to renew the license to operate KCNO.

The primary issue in the case was the nature of the fee arrangement. Plaintiff contended there was an agreement that he receive his actual expenses and $50 per hour for his time and that all parties to the hearing whom he represented would be responsible for his entire fee because of the difficulty in apportioning his charges. Defendant contended the agreement provided plaintiff was to receive a percentage of whatever interest he was successful in salvaging or acquiring with the exception of KCNO. Defendant and his father claimed it was understood that defendant and KCNO had no responsibility for any fees whatsoever because it was primarily the alleged transgressions of his father which had caused defendant to have problems with the relicensing of KCNO.

The first assignments of error pertain to the admission of testimony that KCNO was worth $150,-000, had annual earnings of as high as $34,000, and that defendant’s father received the income therefrom. [230]*230Defendant claims that, in the absence of a request for punitive damages, evidence which disclosed the wealth and financial standing of defendant was irrelevant and prejudicial. He also claims that evidence of the father’s receipt of the income from the station would indicate that defendant was merely a nominal owner for his father and would tend to cause the jury to return a verdict against defendant for his father’s debts.

The testimony was admissible for other reasons and, therefore, no error was committed because of its introduction. The value of the station and its income were relevant to plaintiff’s quantum meruit cause of action as evidence tending to prove the reasonable value of plaintiff’s services. Such information also throws light upon the likelihood that plaintiff would do work concerning the conservation of such an asset but look elsewhere for his expenses and fees.

The testimony that defendant’s father received the entire income from KCNO would tend to show that he had control of the station and thus had authority to represent his son in matters pertaining thereto. Most of the negotiations with plaintiff were carried on by defendant’s father. Also, the testimony showed that defendant’s father had a personal financial reason for testifying that the arrangement for fees with plaintiff excluded any responsibility on the part of either KCNO or the person in whose name it stood.

The defendant also contends that the trial court erred in failing to permit him to testify whether he had any income other than that which he received from teaching school. Defendant had already testified he received no income from KCNO. Whether or not defendant had income unconnected with the assets concerned in this litigation was irrelevant. '

[231]*231Defendant next contends that the trial court erred in failing to withdraw from the jury’s consideration plaintiff’s cause of action on an account stated. Defendant bases Ms contention on the absence of any evidence of an account ever having been rendered to defendant. Defendant’s position is not well taken because there was evidence that, by prearrangement of the parties, the total charges due from everyone would be lumped and the statement sent to defendant’s father. In addition, there was ample proof that defendant’s father was authorized by defendant to be in complete charge of KCNO and, therefore, had authority to conduct all of its business. Under such circumstances, defendant’s father would be Ms agent for the conduct of the business of KCNO, and a statement sent to defendant’s father for charges due from KCNO would be the equivalent of one sent to defendant.

Defendant next contends that the court erred in giving the following instruction:

“I instruct you that an agreement to answer for the debt, default or miscarriage of another is void unless it, or some note or memorandum thereof, expressing the consideration, is in writing and subscribed by the party to be charged, or by Ms lawfully authorized agent. If, however, the person who agrees to pay the debt of another obtains some benefit from such an agreement and does not become a mere guarantor for another’s debt, then a promise made by such person is sufficient and valid even though not in writing.”

The exception to the instruction was as follows:

“* * * the language of that instruction implies that if Robert W. Hansen employed the plaintiff to perform services for him, * * * that because of the benefit he would receive- in that [232]*232respect that this would also render him liable for ¥7. H. Hansen’s bills * *

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Bluebook (online)
512 P.2d 997, 266 Or. 225, 1973 Ore. LEXIS 349, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chase-v-hansen-or-1973.