Deering v. Schreyer

52 N.Y.S. 203, 30 A.D. 602
Appellate Division of the Supreme Court of the State of New York·Decided June 10, 1898·Published·Cited by 7 cases

Opinion

INGRAHAM, J.

The petitioner, James A. Deering, presented a petition to this court entitled “In the Matter of the Opening of Lexington Avenue between 97th and 102d Streets in the City of New York.” In that petition it is alleged that these proceedings were commenced to acquire title to the lands required for the opening of Lexington avenue, and that commissioners were appointed; that one John Schreyer, who was the owner of property taken for such street opening, employed the petitioner to take such proceedings as might seem advisable towards obtaining compensation for the loss and damage sustained by him for lands taken, and agreed to pay the said petitioner “a sum equal to 50 per cent, of the sum allowed and confirmed on account of said loss and damage,” and that an award was made for the land so taken that had been owned by the said Schreyer, of the sum of $22,500, which award was confirmed; that the sum of $22,500 remained in the hands of the comptroller of the city of New York; that the petitioner had filed with the comptroller notice of lien as attorney at law of the said Schreyer for the amount due to said petitioner; that the said Schreyer refused to pay the amount due as claimed by said petitioner; and that the mayor had certain liens for unpaid taxes and assessments. And the petitioner prays that an order be made referring it to a referee, to determine the claim of said petitioner for services rendered to the said Schreyer, and that the said sum of $11,250 be determined and adjudicated, and the same be declared to be a lien upon the said award, and that said petitioner be adjudged to be entitled to be paid that sum out of the said award by the comptroller of the city of New York. To this petition Schreyer filed an answer, in the second clause of which he takes the following objection: “That the award made in the above-entitled proceeding was in a special proceeding, and not in an action, and he denies the jurisdiction of this court in this proceeding to adjudge that he, said John Schreyer, shall pay to the said James A. Deering any sum whatever, or to adjudge that the said Deering has any lien upon said award.” Upon the presentation of this petition and answer the court made an order appointing a referee to take proof of the facts stated in the petition, and to ascertain and report as to what extent the said Schreyer was indebted to the petitioner for services rendered, and to what extent, if any, Mr. Deering was entitled by assignment to any portion thereof, or to a lien therefor, upon the said award; and directing that the said referee report as to what taxes and assessments are due and payable out of the sums to the mayor, etc., of the city of New York; and, until the coming in of the referee’s report, that the award be retained by the comptroller of the city of New York. Subsequently an order was made [205]*205to pay out of that award the sum of $7,500 to a person holding a mortgage upon the said real property, and, further, that the sum of $2,623.99 be paid to the comptroller of the city of New York for the claims of the city for taxes and assessments, and that the balance of the said fund be brought into court to abide the proceedings before the said referee. Upon the matter coming on for hearing before the referee, the counsel for Schreyer objected to an inquiry into any matter before the referee save as to the taxes, on the ground that the claim of Deering should be determined in an action, and not in a special proceeding upon a reference. This objection was overruled and the defendant excepted.

We think this objection taken by the counsel for Schreyer in the answer should have been sustained, and that the court had no power to direct that this amount due from the city of New York, and which stood in place of the real estate of the appellants which had been condemned and taken by the city in these proceedings, should be paid to the petitioner. It appeared from the petition that the report of the commissioners allowed to Schreyer, as the owner of the property taken under these proceedings, the sum of $22,500, and that said report was on June 1, 1894, duly confirmed. This special proceeding, having for its object the condemnation of this property to be .acquired for the opening of Lexington avenue, was terminated by the entry of the final order, and all lands and property embraced within the limits of the avenue opened became vested in the city, and this award stood in place thereof; the city being bound to pay that award to Schreyer within four calendar months after the confirmation of the commissioners’ report. In case of its failure to make such payment, Schreyer was entitled to maintain an action against the city to recover the same by judgment. That money which had been awarded for the land taken was not in court, nor .subject to the order of the court. The city had become the debtor of Schreyer for that sum of money, and Schreyer was liable to the petitioner for the amount of compensation which it was agreed he should receive for the services he had rendered; but the court had no power to compel the payment by the city of this sum of money by a nummary proceeding,' either to Schreyer or the petitioner; Schreyer having right of action under the statute against the city to recover it. When the proceedings were commenced, the court was without jurisdiction in the special proceeding to direct the city to pay either Schreyer or the petitioner the amount of this award. It is unnecessary for us to determine whether or not the petitioner had a lien upon this fund for the amount of his compensation. Section 66 of the Oode does not apply. It is therein provided:

“From the commencement oí an action or the service of an answer containing a counterclaim the attorney who appears for a party has a lien upon his client’s cause of action or counterclaim, which attaches to a verdict, report, decision, or judgment in his client’s favor, and the proceeds thereof, in whosoever hands they may come; and cannot be affected by any settlement between the parties before or after judgment.”

The lien given by this section appears to apply only to causes of .action to enforce which an action had been commenced, or to re[206]*206cover which an answer containing a counterclaim had been served. The distinction between actions and special proceedings is recognized all through the Code. Irrespective of the Code, an attorney had a lien at common law. The nature of such a lien is stated in Goodrich v. McDonald, 112 N. Y. 162, 19 N. E. 651, as follows;

“Attorneys have two kinds of liens peculiar to them in their relations with their clients. One is a lien which an attorney has upon all the papers of his client in his possession, by virtue of which he may retain all such papers until his claim for services has been discharged. That, in the books, is called a ‘retaining lien.’ An attorney also has a lien upon the fund or judgment which he has recovered for his compensation as attorney in recovering the fund or judgment, and that is denominated a ‘charging lien.’ ”

The court then states the methods by which this lien could be enforced, and says:

“If the fund recovered was in possession or under the control of the. court, it would not allow the client to obtain it until he had paid his attorney, and in administering the fund it would see that the attorney was protected. If the thing recovered was in a judgment, and notice of the attorney’s claim had been given, the court would not allow the judgment to be paid to the prejudice of the attorney.

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Deering v. Schreyer, 52 N.Y.S. 203, 30 A.D. 602 (N.Y. Ct. App. 1898).

52 N.Y.S. 203 (Deering v. Schreyer) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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