Dankwardt v. Kermode

68 Colo. 225
CourtSupreme Court of Colorado
DecidedJanuary 15, 1920
DocketNo. 9540
StatusPublished
Cited by14 cases

This text of 68 Colo. 225 (Dankwardt v. Kermode) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dankwardt v. Kermode, 68 Colo. 225 (Colo. 1920).

Opinion

Mr. Justice Bailey

delivered the opinion of the court.

The action was by Dankwardt for a decree setting off two judgments which he had theretofore recovered of the defendant, M. L'uella Kermode, against a judgment in her favor which she had recovered of him. Also it was sought therein to have the court deny the rights of defendants Bottom and Baxter to assert an attorneys’ lien against the judgment secured by Kermode, paramount to Dankwardt’s right of set off. Findings and decree were for Bottom and Baxter, and Dankwardt brings the case here for review.

It appears from the admitted facts that Dankwardt recovered a judgment against M. Luella Kermode and others for $823.29 and costs, on October 30, 1912. That on November 30, 1914, he recovered another judgment against [226]*226M. Luella Kermode, lor $416.00 and costs, and that no part of either of such judgments has been paid. That on the 15th of June, 1912, John T. Bottom and, Joseph N. Baxter, attorneys, entered into a contract with M. Luella Kermode for services to be rendered in an action to be brought by her against Dankwardt; that they were to receive compensation upon a contingent basis, each to receive one-third of whatever amount was recovered in such suit. After two trials judgment was finally entered in the sum of $1,000.00 in favor of Kermode and against Dankwardt. The question is whether the attorneys’ lien attaches to two-thirds of such judgment, according to agreement, or whether Dankwardt shall be permitted to set off his judgments, as above noted, against the entire judgment, without regard to such claimed lien.

Section 242, R. S. 1908, is the provision on which the claims of Bottom and Baxter are based, and reads as follows: “All attorneys and counselors-at-law, shall have a lien on any money, property, choses in action, or claims and demands in their hands, and on any judgment they may have obtained, or assisted in obtaining', in whole or in part, and on any and all claims and demands in suit, for any fees or balance of fees, due or to become due from any client. And in the case of demands in suit, and in the case of judgments obtained in whole or in part by any attorney, such attorney may file with the clerk of the court wherein such cause is pending, notice of his claim as lienor, setting forth specifically the agreement of compensation between such attorney and his client or clients, which notice, duly entered of record, shall be notice to all persons and to all parties, including-the judgment creditor, and all persons in the case against whom a demand exists, and to all persons claiming by, through or under any person having a demand in suit or having obtained a judgment, that the attorney whose appearance is thus entered has a first lien on such demand in suit, or on such judgment for the amount of his fees; but such notice of lien shall not be presented in any manner to the jury in the case in which the same is filed. Such lien may be enforced by the proper civil action.”

[227]*227In Fillmore v. Wells, 10 Colo. 228, 15 Pac. 344, 3 Am. St. 567, this court, in discussing the effect of the former attorney’s lien statute, which is much less comprehensive than the present one, said, at page 231: “Our statute «recognizes both the general and special branches of the attorney’s lien as it was enforced at the common law; but in some important particulars this lien under the statute is much more complete and satisfactory than it is at the common law. The statutory lien is not limited to costs or to taxable fees. It reaches all fees due for services rendered, whether the amount of such fees has been agreed upon or is to be settled in suit as upon a quantum meruit. Nor is it limited to compensation for services rendered by the attorney in procuring the judgment upon which he relies. In this respect it is more comprehensive than the mechanic’s lien; it covers a balance legally due him for any and all professional services theretofore rendered his client.”

In the case at bar the claimed lien is founded upon a specific contract for fixed compensation. In discussing the effect of such a contract between attorney and client, in Bell v. Lake County, 26 Colo. App. 192, 141 Pac. 861, the court, after citing with approval Terney v. Wilson, 45 N. J. Law, 282, Ely v. Cook, 28 N. Y. 365, and Williams v. Ingersoll, 23 Hun. (N. Y.) 284, at page 199 thereof (141 Pac. 864) says: “That a contract between attorney and client for payment of the attorney out of the judgment recovered or to be recovered operates as a binding equitable assignment of that fund pro tanto, and creates a lien upon the specific fund, is clearly field in Terney v. Wilson, supra, citing Ely v. Cook, and Williams v. Ingersol, supra, and other authorities.

“We think, and hold, that the common law lien created by such an assignment, of which the judgment debtor has notice, is in no wise inferior to the statutory lien of an attorney. Therefore, the status of a judgment debtor who settles the judgment with the judgment creditor, or anyone claiming under him, without regard to the lien of the at[228]*228torney, does so at his peril in either case, and in that respect the principle announced by, the authorities as to the statutory lien applies also to the' common law.” (Citing authorities.)

Under this decision it is clear that when the contract for services was signed by the parties on June 15, 1912, it then and there operated as an equitable assignment by virtue of the attorney’s lien statute, of her rights in the demand against Dankwardt, to the extent of giving her attorneys a first lien to the amount of their agreed, compensation upon any judgment which she might recover thereon. There is nothing in the nature of an action for malicious prosecution which prevents it from ' being the subject of equitable assignment under the attorney’s lien statute. In Miller v. Houston, 27 Colo. App. 89, 146 Pac. 786, it was declared: “It is quite true, at common law, that all torts which are not injuries to property are not generally assignable. However, our statute gives to attorneys a lien on all claims and demands in suit and a lien upon all judgments obtained for any fees or balance of fees due or to become due from any client. * * f There is nothing in the statute indicating a purpose of the legislature to exclude causes' of action for personal injuries from the lien act. There is every reason why such causes of action should be included therein.”

In determining the question whether the right of set off shall be permitted to defeat an attorney’s lien the Supreme Court of Wisconsin in Stanley v. Bouck, 107 Wis. 225, 83 N. W. 298, said: “An application to the court to set-off one judgment against another is addressed to the sound discretion of a court of equity, whether made by motion or action, and when the judgments are rendered in actions having no connection with each other, it will not be allowed as against an attorney’s equitable lien for services and disbursements, where evident injustice will be done.”

In Rice v. Day, 33 Neb. 204, 49 N. W. 1128, it is said : “Whatever the rule may be in other states, it is well settled in this state that the lien of an attorney upon a judg[229]*229ment to the extent of his reasonable fees and disbursements, is paramount to any rights of the parties in the suit, or to any set-off.” ,

In addition to our own decisions the case of Harlan et al. v. Bennet et al., 127 Ky. 572, 106 S. W. 287, 32 Ky. L. Rep.

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Bluebook (online)
68 Colo. 225, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dankwardt-v-kermode-colo-1920.