Clark v. Midwest Bakeries & MacAroni Manufacturing Co.

201 S.W.2d 423, 240 Mo. App. 18, 1947 Mo. App. LEXIS 380
CourtMissouri Court of Appeals
DecidedApril 7, 1947
StatusPublished
Cited by4 cases

This text of 201 S.W.2d 423 (Clark v. Midwest Bakeries & MacAroni Manufacturing Co.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clark v. Midwest Bakeries & MacAroni Manufacturing Co., 201 S.W.2d 423, 240 Mo. App. 18, 1947 Mo. App. LEXIS 380 (Mo. Ct. App. 1947).

Opinion

*20 BLAND, P. J.

This is an action to enforce an attorney’s lien. At the conclusion of the evidence the court sustained defendants’ motion for a directed verdict, resulting in a verdict and judgment for the defendants. Plaintiff has appealed.

The facts show that on February 25, 1942, one Raymond Vaughn, an employee of the defendant, baking company, sometimes called the Roma Bakery, was seriously injured while at work in the bakery plant in Kansas City; that plaintiff is an attorney-at-law residing in that city; that shortly after Vaughn was injured the latter employed plaintiff to prosecute his claim against his employer under the Workmen’s Compensation Act agreeing to pay him 33J/3% of whatever was recovered; that defendant, Casualty Reciprocal Exchange, is the insurance carrier; that plaintiff rendered various legal and social services *21 to the employee, including the procurement of the advancement of some of the weekly payments that were being made by the insurance carrier to the employee; that he also entered into negotiations with the insurance carrier relative to a settlement of the claim; that on May 7, 1942, plaintiff served notice on one Dye that he was claiming an attorney’s lien; that Dye was an employee of the insurance carrier, whom plaintiff claims was also ¿n agent of the employer; that plaintiff learned that two other attorneys were seeking employment from Vaughn; that Vaughn told plaintiff that the two other lawyers were ‘ ‘ after him ’ ’ and the former told- the latter to pay no attention to them. However, these attorneys, without plaintiff’s knowledge, filed a claim before the Workmen’s Compensation Commission on July 7, 1942.

On August 6, 1942, plaintiff entered the military service of the government. He was discharged from the military service in March 1943, upon condition that he enter a defense plant, which he did, and continued working there for 20 months after his discharge.

When plaintiff entered the military service he asked his office associate to look after Vaughn’s interests in his absence, but so far as the record shows the associate took no part in the matter, but the case was prosecuted before the Commission by the two attorneys mentioned above. A compromise settlement was reached and approved by the Commission on December 24, 1942. This settlement was in a lump sum award of $5745.19 — $745.19 having been theretofore paid to .the employee. The balance of the award ($5000) was paid to Vaughn by the insurance carrier. Plaintiff had no knowledge of any of the proceedings before the Compensation Commission and Vaughn never discharged him as his attorney.

On March 25, 1945, plaintiff, having returned to the practice of the law and learning of the award, notified the Workmen’s Compensation Commission, by letter, that he was claiming a lien upon the award for his attorney’s fee. The matter was duly heard by the Commission and, on June 7, 1945, the claim was denied on the ground that plaintiff had not filed his notice of lien with the Commission for more than two years after the award had been entered and paid. Plaintiff appealed from this adverse ruling and order of the Commission to the Circuit Court of Jackson County, but he later dismissed the appeal.

Plaintiff, in his petition, asks for an enforcement of a lien in the sum of $1666.66.

Plaintiff insists that the court erred in sustaining defendants’ motion for a directed verdict, for the reason that plaintiff is entitled to a lien on the award under the provisions of section 13338 R. S. Mo. 1939. Sections 13337 and 13338 are our general attorney’s lien statutes. Section 13337 provides for an attorney’s lien upon his client’s cause of action which attaches to the judgment in the attorney’s favor and cannot be affected by any settlement between the parties before *22 or after judgment. Section 13338 provides that an attorney may lawfully contract for a percentage of the proceeds of a claim arising ex contractu or ex delicto. It also provides for a notice to be served by the attorney upon the defendant, or the proposed defendant, of the agreement with the client and, when served, the agreement shall operate as a lien upon the claim, cause of action and upon the proceeds of any settlement thereof for such attorney’s percentage thereof; that any'defendant, or proposed defendant, who shall settle any such claim or cause, of action without first procuring the written consent of the attorney shall be liable to such attorney for his lien upon the proceeds of such settlement in accordance with the contract existing between the attorney and his client.

The Workmen’s Compensation Act also has a section dealing, among other things, with attorneys’ fees and liens therefor. This is section 3711, and reads as follows:

“The compensation payable under this chapter, whether or not it has been awarded or is due, shall not be assignable, shall be exempt from attachment, garnishment, and execution, shall not be subject to set-off or counterclaim, or be in any ivay liable for any debt and in case of the insolvency of an employer or his insurer, or the levy of an attachment or an execution against an employer or insurer shall be entitled to the same preference and priority as claims for wages, without limit as to time or amount, save that if written notice is given to the commission of the nature and extent thereof, the commission may allow as lien on the compensation, reasonable attorney’s fees for services in connection with the proceedings for' compensation if such services are found to be necessary and may order the amount thereof paid to the attorney in a lump sum or in installments. All attorney’s fees for services in connection with this chapter shall be subject to regulation by the commission and shall be limited to such charges as are fair and reasonable and the commission shall have jurisdiction to hear and determine all disputes concerning the same.”

Defendants contend that plaintiff, not having timely complied with the provisions of section 3711, has never had any lien. We are of the opinion that defendants’ contention is well taken, and that the court committed no error in directing a verdict for the defendants.

Section 3691 of the Workmen’s Compensation Act provides that the compensation provided for under the act shall be in lieu of all other liability on the part of the employer “whether to the employee or to any other person.” (Italics ours.) The Compensation Act not only defines “the rights of the employer and the employee, but of third persons as well”. [Sharp v. Producers’ Produce Co., 47 S. W. (2d) 242, 244.] [See, also, DeMay v. Liberty Foundry Co., 37 S. W. (2d) 640, 645.]

Under the provisions of section 3711 the compensation payable to the employee is not assignable, may not be attached, may not be gar *23 nished, may not be levied upon, shall not be, liable for any debt except that to his attorney, to the extent that the Commission may allow for the latter’s services, and the fees for such services can only become a lien upon the compensation upon its allowance by the Commission after it has notice of the nature and extent thereof by the attorney.

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Cite This Page — Counsel Stack

Bluebook (online)
201 S.W.2d 423, 240 Mo. App. 18, 1947 Mo. App. LEXIS 380, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clark-v-midwest-bakeries-macaroni-manufacturing-co-moctapp-1947.