Desaman v. Butler Bros.

136 N.W. 747, 118 Minn. 198, 1912 Minn. LEXIS 560
CourtSupreme Court of Minnesota
DecidedJune 14, 1912
DocketNos. 17,554—(128)
StatusPublished
Cited by20 cases

This text of 136 N.W. 747 (Desaman v. Butler Bros.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Desaman v. Butler Bros., 136 N.W. 747, 118 Minn. 198, 1912 Minn. LEXIS 560 (Mich. 1912).

Opinion

Holt, J.

Upon issues framed and tried to determine the amount of the applicant’s lien as plaintiff’s attorney in the action, the defendant and plaintiff having settled the action without the knowledge of such attorney, the court found in favor of the applicant, the defendant [200]*200moved for a new trial, and thereafter amended findings, and now appeals from the orders denying the motions.

In 1907 plaintiff, an Italian laborer, employed J. De La Motte, the applicant herein, as his attorney to bring an action against defendant to recover damages for the loss of plaintiff’s left foot, through defendant’s negligence. The agreement between plaintiff and his attorney, this applicant, was that the attorney should receive for his services one-half of the amount that might be obtained for plaintiff. Plaintiff was to pay costs and expenses. Upon the trial plaintiff recovered a verdict of $3,000. The defendant made the alternative motion for judgment or new trial, which was denied in all things. On April 27, 1908, the stay having expired, plaintiff caused notice of taxation of costs and disbursements to be served on defendant’s attorneys, when further stays were obtained and an appeal perfected by defendant to this court.

On May 17, 1909, while such appeal was still pending, the defendant' sought out plaintiff and sent him from Duluth to an attorney at Chicago; and, unknown to both this applicant and to defendant’s attorney of record, settled by paying plaintiff $700, and obtained a stipulation dismissing the appeal and the case, without costs to either party. This stipulation was sent to defendant’s attorney of record in Duluth, but plaintiff’s attorney was not informed of the settlement till in July. Plaintiff disappeared, and his attorney received nothing for his work. The attorney promptly applied for permission to proceed and enforce his attorney’s lien in the action in the district court. The application was denied, but on appeal to this court (Desaman v. Butler Bros. 114 Minn. 362, 131 N. W. 463) the court below was directed to grant relief. Thereupon issues were framed and the case tried to a jury. At the close of the testimony, when both parties moved for judgment) the court discharged the jury, and ordered that “the dismissal entered in the original action be set aside and that the matter proceed to judgment, which [shall] be entered in favor of the plaintiff and against the defendant for the amount due [applicant], which the court finds to be $1,500, with interest from the time of the rendition of the verdict in the original action, and that the judgment stand as the property of the applicant.” [201]*201The applicant preserved an exception to the refusal of the court to include the costs and disbursements paid by the attorney at the request of plaintiff. The defendant then moved for a new trial, which motion was denied, and also its motion to amend the findings, so that the applicant recover $350 and no more. The defendant appeals from both orders.

We have recently held that a client has always the right to settle his cause of action and stop litigation at any stage of the proceeding, subject, however, to the right of the attorney to receive compensation for services rendered. Burho v. Carmichiel, 117 Minn. 211, 135 N. W. 386. It is therefore contended by defendant that a litigant retains the unrestricted right to determine for what amount the cause of action may be settled, and, having so done, the lien of his attorney for services is measured by the amount determined on and actually settled for. Conceding, without deciding, that this may be true at any time prior to the rendition of a verdict in the action which the attorney has been employed to bring, we are of opinion that after verdict fixing the amount of a plaintiff’s cause of action a secret and collusive, compromise between parties litigant does not affect the amount of the attorney’s lien.

We are not prepared to hold, and it is not necessary so to do in this case, that an attorney having a lien for his compensation may obstruct a compromise and settlement of a lawsuit, after verdict or judgment, by insisting that the agreed share shall first be paid to him. The uncertainty of litigation, the need of speedy realization of the proceeds of the suit, the question of a defendant’s ability to respond to the extent of the verdict or judgment, are all matters which a plaintiff may take into consideration in making a settlement or compromise. After so doing, if he should desire, in good faith, to settle for less than the verdict or judgment, we have no doubt that the court would not permit his attorney to stand in the way.

It is truly said in Boogren v. St. Paul City Ry. Co. 97 Minn. 51, 106 N. W. 104, 3 L.R.A.(N.S.) 379, 114 Am. St. 691: “The policy of the law favors the adjustment of claims and the termination of litigation, and the courts are not disposed to limit the right of parties in this respect.” To the same effect is Nielson v. City of [202]*202Albert Lea, 91 Minn. 388, 98 N. W. 195; but therein is also clearly indicated by Mr. Justice Brown that, if there be fraud and collusion to deprive the attorney of his lien, the settlement will not be permitted to accomplish such result.

What are the facts in the case at bar ? The cause was tried and a verdict was rendered. The justice of this verdict, upon the proposition of defendant’s responsibility for plaintiff’s injuries, and the loss sustained thereby, the trial court considered and approved, upon denying defendant’s motion for a new trial. Presumptively the verdict was right, and established the amount of the cause of action as $3,000. By agreement the attorney of plaintiff was to have $1,500 thereof as his fees, and plaintiff was to pay the necessary court costs and disbursements; but subsequently, plaintiff being without funds, it was agreed that the attorney should advance what was needed to carry on litigation. The statute (subdivision 3 of section 2288, R. L. 1905) gives the attorney a lien on the cause of action for his compensation to the extent of the amount expressly agreed upon. A defendant has constructive notice thereof. So that it must be held that, when defendant undertook to settle with plaintiff, it knew that the appellant herein, the attorney, had a lien for his compensation for either an express or implied amount up to $3,000.

In Crowley v. Le Duc, 21 Minn. 412, it is held that the statute giving attorneys a lien for their compensation “is a remedial one, and to be largely and beneficially construed in advancement-of the remedy, so as to secure and protect, and not defeat, the rights and objects intended by its provisions.” A verdict had been rendered in that case in favor of plaintiff for $266. His attorneys had given notice to defendant of their lien, but did not state the amount. The defendant settled with plaintiff for $100, without the knowledge of his attorneys, who had not been paid. The attorneys proceeded, by motion in the action, as was done in this case, to enforce their lien, and the court found that the agreed and reasonable value of their services was $130, and the costs were $29 advanced for plaintiff, and gave the attorneys the right to recover $159 from the defendant out of funds garnished in the action. So that the amount of the [203]*203settlement did not limit the amount of the attorneys’ lien enforced therein.

When the court directed judgment to be entered for $1,500 at the close of the trial, the admitted and proven facts showed collusion and fraud as a matter of law.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Wise v. Midtown Motors, Inc.
42 N.W.2d 404 (Supreme Court of Minnesota, 1950)
Buckley v. John
51 N.E.2d 317 (Massachusetts Supreme Judicial Court, 1943)
Kull v. Brow
165 S.W.2d 1011 (Court of Appeals of Texas, 1942)
Krippner v. Matz
287 N.W. 19 (Supreme Court of Minnesota, 1939)
Byram v. Miner
47 F.2d 112 (Eighth Circuit, 1931)
State Ex Rel. Hilton v. County of Lincoln
210 N.W. 635 (Supreme Court of Minnesota, 1926)
Taylor v. Chicago Great Western Railroad
203 N.W. 434 (Supreme Court of Minnesota, 1925)
Nash v. Kirschoff
201 N.W. 617 (Supreme Court of Minnesota, 1925)
State ex rel. Showen v. O'Brien
109 S.E. 830 (West Virginia Supreme Court, 1921)
Griggs v. Chicago, Rock Island & Pacific Railway Co.
177 N.W. 185 (Nebraska Supreme Court, 1920)
Wildung v. Security Mortgage Co. of America
173 N.W. 429 (Supreme Court of Minnesota, 1919)
Nichols v. Orr
63 Colo. 333 (Supreme Court of Colorado, 1917)
Southworth v. Rosendahl
158 N.W. 717 (Supreme Court of Minnesota, 1916)
Georgian v. Minneapolis & St. Louis Railroad
154 N.W. 962 (Supreme Court of Minnesota, 1915)
Hammond, Whiting & East Chicago Railway Co. v. Kaput
110 N.E. 109 (Indiana Court of Appeals, 1915)
Davis v. Great Northern Railway Co.
151 N.W. 128 (Supreme Court of Minnesota, 1915)
Greenleaf v. Minneapolis, St. Paul, & Sault Ste. Marie Railway Co.
151 N.W. 879 (North Dakota Supreme Court, 1915)

Cite This Page — Counsel Stack

Bluebook (online)
136 N.W. 747, 118 Minn. 198, 1912 Minn. LEXIS 560, Counsel Stack Legal Research, https://law.counselstack.com/opinion/desaman-v-butler-bros-minn-1912.