Dill v. Public Utility District No. 2 of Grant County

475 P.2d 309, 3 Wash. App. 360, 1970 Wash. App. LEXIS 938
Court of Appeals of Washington·Decided October 7, 1970·No. 126-40898-3·Published·Cited by 9 cases

Opinion

Green, J.

Plaintiff, C. C. Dill, brought this action to recover $9,415 allegedly due under a contingent fee contract entered into with Public Utility District No. 2 of *361 Grant County, defendant. Plaintiff appeals (1) an order granting defendant’s motion for summary, judgment and dismissing the action with prejudice; and (2) an order denying plaintiff’s motion for change of venue.

On August 22, 1957, plaintiff, a lawyer and former United States Congressman and Senator, entered into a letter agreement 1 with defendant to perform services in attempt *362 ing to bring about the storage of Columbia River water in British Columbia. The purpose of such storage was to increase production of power at Priest Rapids and Wanapum dams during the low water season when stored water could be released into the Columbia River from Canada. If plain *363 tiff was successful in bringing this about, he was to be paid a contingent fee.

The record shows that between 1940 and 1957, plaintiff, acting on his own and employed by no one, performed substantial work in pursuit of this goal. He contacted high-level officials in British Columbia, Washington D.C. and the northwestern states as well as members of the Canadian-American International Joint Commission. Following the execution of the letter agreement, Mr. Dill continued these efforts.

Prior to April 12, 1960, Mr. Dill notified defendant he desired to appear before defendant’s commissioners on April 25, 1960 to explain the current status of the water storage problem. On April 12, 1960, attorney Darrel E. Ries, at defendant’s direction, notified Mr. Dill by registered mail that he was not authorized to represent defendant on this or any other matter. Thereafter, Mr. Dill did no further work. Subsequent thereto, a treaty was consummated between the United States and Canada and funds were raised for construction of Canadian dams. It is clear Mr. Dill at no time attended any meetings of the joint commission nor participated in the drafting of treaty agreements or any other documents.

Plaintiff’s complaint alleges water was first stored in Canada by means of Canadian dam construction during the spring of 1967 and water was first available for production of energy at defendant’s Priest Rapids and Wanapum dams during the period August 1, 1967 to April 1, 1968; that on April 1, 1968, compensation at the rate of one-tenth of a mill for 94,150,000 kilowatt hours of energy became due and owing or the sum of $9,415; and that on June 19, 1968 a claim was presented to defendant for this amount and rejected on July 5, 1968. This action was then commenced. Defendant moved for summary judgment upon the pleadings, the deposition of Mr. Dill and defendant’s affidavit. In granting the motion, the trial judge said:

I think if Mr. Dill had a cause of action, he had a cause of action in 1960 when he was discharged, and he could have brought an action on a quantum meruit basis for *364 work performed, and I think he waited too long in bringing his action.

Plaintiff contends this conclusion was erroneous.

Plaintiff takes the position the letter of August 22, 1957 was a bilateral contract; his performance under that contract was completed prior to termination on April 12, 1960; defendant’s performance was not required until April 1, 1968 and a breach of the contract by defendant did not occur until that date; the letter of April 12, 1960 was at most an anticipatory breach that plaintiff could elect to ignore; and the statute of limitations on plaintiff’s cause of action for defendant’s breach accrued April 1, 1968 when plaintiff’s demand for payment was rejected. In support of this position, plaintiff cites Restatement of Contracts, § 322 (1932); Boyer v. Yakima, 156 Wash. 518, 287 P. 211 (1930); 17 Am. Jur. 2d Contracts § 457; and Burke & Farrar, Inc. v. Campbell, 128 Wash. 646, 224 P. 9 (1924).

It has long been the rule in our state that a client has the right, with or without cause, to discharge his attorney at any time; upon such discharge the attorney is relegated to the remedy of a judgment against his client in quantum meruit for the reasonable value of his services rendered to the time of discharge. Hamlin v. Case & Case, Inc., 188 Wash. 150, 153, 61 P.2d 1287 (1936); Kimball v. PUD 1, 64 Wn.2d 252, 257, 391 P.2d 205 (1964); Cavers v. Old Nat'l Bank & Union Trust Co., 166 Wash. 449, 452, 7 P.2d 23 (1932); Ramey v. Graves, 112 Wash. 88, 191 P. 801 (1920). In Hamlin, 188 Wash, at 154-55, it was stated:

The rule is general here, and elsewhere, that, where the compensation of an attorney is to be paid to him contingently on the successful prosecution of a suit and he is discharged or prevented from performing the service, the measure of damages is not the contingent fee agreed upon, but reasonable compensation for the services rendered, and
“If the compensation, agreed upon is contingent on the successful result of the suit, the measure of damages is not thei contingent fee but the reasonable value of the services rendered.” Ramey v. Graves, 112 Wash. 88, 191 Pac. 801, citing many cases.
*365 This court has also reaffirmed the same principle announced in the Ramey case, supra, in Wright v. Johanson, 132 Wash. 682, 233 Pac. 16, and Cavers v. Old Nat. Bank & Union Trust Co., 166 Wash. 449, 7 P. (2d) 23.

As early as 1925 it was held that such cause of action by an attorney arises on the date of discharge and the statute of limitations begins to run on that date. Wright v. Johan-son, 132 Wash. 682, 233 P. 16 (1925); see Martin v. Camp, 219 N.Y. 170, 114 N.E. 46 (1916). These rules have been applied in cases where the discharge occurred before the attorney fully performed his agreement. In this situation, the usual contract rules on anticipatory breach have not been applied.

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Dill v. Public Utility District No. 2 of Grant County, 475 P.2d 309, 3 Wash. App. 360, 1970 Wash. App. LEXIS 938 (Wash. Ct. App. 1970).

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