Elmore v. Johnson

21 L.R.A. 366, 143 Ill. 513
CourtIllinois Supreme Court
DecidedOctober 31, 1892
StatusPublished
Cited by47 cases

This text of 21 L.R.A. 366 (Elmore v. Johnson) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elmore v. Johnson, 21 L.R.A. 366, 143 Ill. 513 (Ill. 1892).

Opinion

Mr. Justice Magruder

delivered the opinion of the Court:

Appellee testifies, that the deed made to him by appellant, conveying to him the west half of the lots in controversy, was executed by her in pursuance of a previous contract, which she had made with him, in reference to payment for his legal services. He swears, that, by the terms of this contract, she was to pay all the costs and he was to have a contingent fee of one half of what should be recovered both in the suit for alimony, and in the chancery suit in regard to the lots.

The evidence shows, that this contract was .made during the pendency of the legal proceedings which the appellee was conducting for the appellant. It was not entered into before, or at the time of, his original employment, which took place on February 15, 1882, nor did it exist when he filed the bill on February 23,1882. His answer states, that “early in the spring or summer of 1882 * * * it was * * * mutually agreed that this defendant should have and receive as a contingent fee for his services one half.” He testifies, that he cannot fix the date of the agreement, but that, to the best of his recollection, “it was in March, or April, possibly in May, after I discovered I had a pretty good-sized job on hand, and a good deal of work to do, and had done a good deal of work. * * * She claimed to have no money early in the proceedings, and could not pay my fees in money, and that was why I subsequently made a different arrangement with her.”

Appellant swears that she never made an agreement with the appellee to give him one half of the money, or of the land, to be recovered.

The deed to appellee was also executed while the relation of attorney and client existed between himself and the appellant. That deed was made on January IT, 1884, and he, concedes that he did not cease to-be appellant’s solicitor until some time thereafter.

In England “it is a settled doctrine of equity that an attorney cannot, while the business is unfinished in which he has been employed, receive any gift from his client, or bind his client in any mode to make him greater compensation for his services than he would have a right to demand if no contract should be made during the relation.” (Weeks on Attorneys at Law,—2d ed.—sec. 364). More than fifty years ago, the English doctrine was .adopted by the Supreme Court of Alabama in an able opinion in the case of Lecatt v. Sallee, 3 Port. 115, where it was held, that “an agreement made by a client with his counsel after the latter has been employed in a particular business, by which the original contract is varied, and greater compensation is secured to the counsel, than ma.y have been agreed upon, when he was first retained, is invalid, and cannot be enforced.” The reason for the doctrine is to be found in the nature of the relation, which exists between attorney and client. That relation is one of confidence, and gives the attorney great influence over the actions and interests of the client. In view of this confidential relation, transactions between attorney and client are often declared to be voidable, which would be held to he unobjectionable between other parties. The law is thus strict, “not so much on account of hardship in the particular ease, as for the sake of preventing what might otherwise become a public mischief.” (Lewis v. J. A. & Edwards Ch. Rep. marg. page 599; top page 622). “No single circumstance has done more to debase the practice of the law in the popular estimation, and even to lower the lofty standard of professional ethics and self-respect among members of the legal profession itself in large portions of our country, than the nature of the transactions, often in the highest degree champertous, between attorney and client, which are permitted, and which have received judicial sanction. It sometimes would seem, that the fiduciary relation and the opportunity for undue influence, instead of being the grounds for invalidating such agreements, are practically regarded rather as their excuse and justification.” (3 Pomeroy’s Eq. Jur. sec. 960, note 1). Before the attorney undertakes the business of the client, he may contract with reference to his services, because no confidential relation then exists and the parties deal with each other at arm’s length. The same is true in regard to dealings which take place after the relation has been dissolved. (1 Story’s Eq. Jur.—13 ed.—secs. 310 to 313). But the law watches with unusual jealousy over all transactions between the parties, which occur while the relation exists.

In the case at bar, it does not appear that any definite contract in regard to fees existed between appellant and appellee prior to the spring of 1882. But inasmuch as he undertook to manage her legal interests before that time, there was an implied contract, created by operation of law, which entitled him to receive such reasonable compensation as his services might be worth. “If the amount of compensation be not fixed by the terms of the contract, by which an attorney or solicitor was employed, he would be entitled to be paid such reasonable fees, as have been usually paid to others for similar services.” (Lecatt v. Sallee, supra).

The question then arises, what was a reasonable compensation for the services rendered by the appellee to the appellant. He has introduced no independent evidence upon this subject. His only witness is an office companion, who says, that, in his opinion, appellee’s legal services were worth $30.00 per day, but does not claim to have full knowledge of the services rendered in the matters herein involved. Appellee is unable to state, except approximately, the time spent by him in attending to appellant’s matters, but he says: “I believe that in the whole matters * * * I spent at least forty days.” Forty days’ services at $30.00 per day would be $1200.00.

We do not think, however, that the proof establishes $1200.00 as the value of the services. Mr. W. I. Culver swears, that the customary and usual charge for all the work done by appellee in the divorce, attachment and “resulting trust” cases would be $250.00 in money. Mr. B. F. Richolson, the attorney for Pratt, swore that appellee’s services in the chancery, or “trust,” suit in regard to the land were reasonably worth from $300.00 to $350.00, and he made the following statement: “If the fee was contingent upon success, I think he would be justified in charging somewhat more; I hardly think double that, because I think the success was so reasonably assured there was not very much doubt.”

What was the value of the-lots, of which appellee was to have one half ? In the affidavit filed by appellant in the divorce proceeding on March 6, 1882, she swore that she had been informed that the lots were then worth $3000.00, and were encumbered for $540.00 only. This affidavit was drawn by appellee, and was presented to the court upon an application to set aside the agreement of settlement for $500.00. We cannot suppose, that the value of the lots was exaggerated, in order to induce the court to believe that Pratt was not too poor to pay more than $500.00. Taking $3000.00 as the estimated value of the lots on March 6, 1882, then, by appellee’s agreement for fees, he was to get property worth $1500.00 less $270.00 of encumbrance, amounting to $1230.00. This amount exceeded the reasonable compensation to which appellee would have been entitled under the implied contract, under which he began his services for appellee.

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Bluebook (online)
21 L.R.A. 366, 143 Ill. 513, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elmore-v-johnson-ill-1892.