Creason v. Harding

126 S.W.2d 1179, 344 Mo. 452, 1939 Mo. LEXIS 423
CourtSupreme Court of Missouri
DecidedApril 4, 1939
StatusPublished
Cited by16 cases

This text of 126 S.W.2d 1179 (Creason v. Harding) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Creason v. Harding, 126 S.W.2d 1179, 344 Mo. 452, 1939 Mo. LEXIS 423 (Mo. 1939).

Opinion

*459 CLARK, J.

This is the second appeal of this case, the first being reported in 325 Mo. 661, 30 S. W. (2d) 1. Creason (plaintiff) and Dea-therage were formerly partners in the practice of law. Deatherage died and Creason, as the surviving partner and administrator of the partnership estate,’ sued the estate of Deatherage and also-the lawr partnership of Harding, Murphy and' Stinson, in equity, *460 for an accounting for attorney fees collected by Deatherage in his lifetime and by Harding, Murphy and Stinson after his death. Since the first appeal plaintiff has compromised his claim against the Deatherage estate and the present appeal concerns his claim against Harding, Murphy and Stinson.

The claim arose in this way: E. B. Spiller, of Port."Worth, Texas, was secretary .of the Cattle Raisers Association. Various members of that association assigned to him claims for excessive freight rates collected by numerous railroads. He employed one Cowan 'of the law-firm of Cowan and Burney, Port Worth, as his general attorney to prosecute said claims. Cowan got the claims allowed by the Interstate Commerce Commission, but the railroads refused to pay and Cowan filed suits in Texas. In December, 1915, these suits were dismissed and new suits filed in the United States District Court at Kansas City. Just.prior to the filing of the new suits Cowan employed Deatherage, then a law partner of Creason, to assist in .the. cases. Trials in the district court in 1916 resulted in judgments for Spiller for large sums, which judgments were reversed by the United States Circuit Court of Appeals in 3917 and 1918. The cases were taken on certiorari to the Supreme Court of the United States where, on May 17, 1920, the judgments of the district court were affirmed. At the trials in the district court, in addition to his judgments for damages, Spiller was given judgments for sums equivalent to ten per cent of the damages for attorney fees, which judgments for attorney fees were increased to approximately fifteen per cent of the damages after the cases came back to the' district court from the Supreme Court. The judgments for attorney fees against all the railroads, $21,352.29, and the judgments for damages against all the railroads save three which were in receivership were collected prior ■to the death of Deatherage which occurred January 20, 1921. The three railroads in receivership, St. Louis and San Francisco Ry., Missouri, Kansas and Texas Ry., and the Missouri Pacific Ry. (the Irqn Mountain Ry. having consolidated with the Missouri Pacific), refused to pay the judgments for damages although they were compelled to pay the judgments for attorney fees, at least that part of them which was assessed before the appeal, because taxed as costs and covered by their appeal bonds. As Deatherage made collections he retained his contract proportion of amounts collected as damages and one-half the sums awarded as attorney fees, sending the rest to Cowan.

After the death of Deatherage, to-wit, in February, 1921, Cowan employed Murphy of' the firm of Harding, Murphy and Stinson. Later the law firm of Leahy and Saunders was also employed. These attorneys prosecuted actions agáinst the receivership railroads .in the Federal courts (district court,- Court of Appeals, and Supreme. Court) from February, 1921, to November, 1927-

In the beginning, Cowan had an oral contract with Spiller for a *461 contingent fee of one-third the amount collected. Whether this contract also entitled Cowan to all the sums which might be allowed as attorney fees or to only one-third of them is in dispute and will be discussed later. The expenses were to be deducted from Cowan’s share.

In December, 1915,. Cowan employed Deatherage and agreed that he should have one-third of his (Cowan’s) share. Deatherage was then a partner of Creason. Their partnership was dissolved on January 1, 1916, but each partner retained his interest in the Spiller fees and there is no. dispute that Creason was entitled to one-half of all sums coming to Deatherage under his first agreement with Cowan. On July 1, 1917, Deatherage became a member of the firm of Harding, Murphy, Deatherage and Stinson, but did not take the Spiller cases into the new firm except that he made an allowance to it out of his part of the Spiller fees. About October, 1917, and before any collections were made, Cowan and Deatherage agreed that the latter should have one-half instead of one-third of the former’s share. Deatherage retained all this increase and, as he made collections, remitted to Creason only one-half of his part as per his original employment. After the first appeal to this court Creason settled with Deatherage’s estate his claim for one-half of this increase.

As stated, Cowan employed Murphy shortly after Deatherage’s death. He explained to Murphy the agreement he had made with Deatherage, said that the latter’s death had terminated that agreement, and agreed that Murphy should take the same- proportion of .fees, to-wit, one-half of Cowan’s share. In April, 19.21, Cowan, with Murphy present, employed Leahy and Saunders, the agreement being for ‘ ‘ a reasonable division of the fees. ’ ’ -In August, 1923, Spiller agreed to raise Cowan’s fees from one-third of the recoveries to one-half of same, and about the same time Cowan, Murphy, and Leahy and Saunders agreed that Cowan should receive one-half of the fees and the other two firms one-fourth each. Within a few days thereafter settlement was made with the Missouri, Kansas and Texas By., the proceeds being distributed by Spiller who paid the attorneys as follows: Cowan, $6575.82, Harding, Murphy and Stinson, $3287.-91, and Leahy and Saunders, $3287.91. In December, 1923, Stinson retired from the firm of Harding, Murphy and Stinson and did not thereafter share in the fees. In October, 1926, the attorneys agreed to divide the fees one-third each to Cowan’s firm, to Harding and Murphy, and to Leahy and Saunders. In November, 1927, the Missouri Pacific ease was settled and Spiller sent Harding and Murphy a cheek for $350 as the share of that firm. In the same month the Frisco case was settled, the collection and distribution being made by Saunders of the firm of Leahy and Saunders. Prior to this settlement, Creason and Deatherage’s executor had served the Frisco with the notice of attorneys’ lien and that railroad would not settle *462 until this lien was released. After some negotiation, ■ Creason and the executor released their claim to a lien upon the payment to Creason of $1582.75. Whether this was in full payment of Creason’s claim in the proceeds of this settlement is now in dispute. After paying said sum to Creason, paying the expenses, and remitting Spiller’s share, Saunders paid to his own firm, to Cowan’s firm and to the Harding and Murphy firm each the sum of $4880:14.

At the second trial in the circuit court the pleadings were amended, new issues set up and the whole case was tried anew, resulting in a decree for the defendants from which plaintiff (Creason) appeals. Appellant contends that “the trial court erred in considering anything except thé matter of accounting by Harding-, Murphy and Stinson, to Creason, administrator, for one-si-xth of the recoveries or collections by them after the death of Mr. Deatherage, against the receivership roads. The decision of this court on the former appeal is res adjudicata

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Bluebook (online)
126 S.W.2d 1179, 344 Mo. 452, 1939 Mo. LEXIS 423, Counsel Stack Legal Research, https://law.counselstack.com/opinion/creason-v-harding-mo-1939.