Grant v. Virginia Beach Bus Line, Inc.

157 S.E. 773, 156 Va. 159, 1931 Va. LEXIS 184
CourtSupreme Court of Virginia
DecidedMarch 19, 1931
StatusPublished
Cited by1 cases

This text of 157 S.E. 773 (Grant v. Virginia Beach Bus Line, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grant v. Virginia Beach Bus Line, Inc., 157 S.E. 773, 156 Va. 159, 1931 Va. LEXIS 184 (Va. 1931).

Opinion

Campbell, J.,

delivered the opinion of the court.

This was an action by notice of motion brought by the Virginia Beach Bus Line, Incorporated, against Charles S. Grant, seeking to recover the sum of $1,103.05, alleged to be due plaintiff from the defendant for money had and received. In addition to the plea of the general issue, defendant filed a special plea of set-off, alleging that plaintiff was indebted to him in the respective sums of $750.00, due as compensation for services rendered as retained counsel under a verbal contract, and $250.00 for general services rendered as an attorney. During the trial the plaintiff admitted that it was due defendant a fee of $50.00 for services rendered, which reduced its claim to $1,053.05.

There was a trial by jury which resulted in a verdict for the plaintiff in the sum of $150.00, which upon its face makes plain the fact that the item of $750.00, claimed by Grant as an offset, in the judgment of the jury was one to which he was entitled. The court, however, was of opinion that there was error in this, and added that sum to the $150.00 item for which verdict had been returned, and entered judgment for the sum of $900.00.

The action of the court in entering judgment for the plaintiff is'assigned as error.

[161]*161The alleged claims of indebtedness of the respective litigants arise out of these facts:

In February, 1928, Messrs. P. W. Bogert and H. A. Williams, Jr., of Norfolk, were desirous of acquiring all of the outstanding capital stock of Virginia Beach Bus Line, Incorporated, and thereby owning the company. They procured an option on this stock at the price of $73,000.00. In order to procure funds with which to consummate the purchase, they applied to Maraden J. Perry, a banker of Providence, Rhode Island, the step-father of Bogert, who, after causing an investigation of the value of the property of plaintiff company to be made by his auditors, and after sundry negotiations with Williams and Bogert, consented to make the loan, it being agreed that he should take as security the note of Virginia Beach Bus Line, Incorporated, endorsed by Messrs. Bogert and Williams, with the stock of the company as collateral, except a block of common stock which was to be givén him as a bonus for making the loan. The consummation of the loan transaction was predicated upon an investigation of the value of the franchise rights of the bus company by Perry’s attorneys, Lockwood and Redfield, of New York city; upon their approval of the value of the franchise and the company’s physical properties; and upon the affairs of the company being, in general, satisfactory to his legal representatives. In order to make the necessary investigations and to consummate the transaction of stock purchase, and to close the entire transaction, the New York firm associated with it as Virginia counsel the defendant, Grant. It was clearly understood by all of the parties that Mr. Grant was employed by the New York firm in behalf of Mr. Perry to whom he was to look for compensation, and that neither the bus company, nor Williams, nor Bogert were to be responsible to him for any of the services which he was to render.

The legal work was completed, the stock duly transferred to Williams and Bogert who endorsed same to' Perry as col[162]*162lateral for the loan, and the entire transaction was completed in all of its essential features before the middle of March, 1928. At the instance of Perry’s New York attorneys, Grant was elected a director of the bus line in order to safeguard the lender’s interest. As an incident of the stock transfer from the former owners to 'Williams and Bogert, and the pledge of the stock as security for the loan, Perry’s attorneys required the former owners to- deposit $5,000.00 with the defendant, Grant, in escrow, out of which to- pay any current bills of the bus line incurred before February 29, 1928, it having been agreed that the company should be free from debt as of that date. Under this agreement Grant ivas to pay all bills of the company presented within the; ensuing sixty days, and at the end of that period was to remit the balance remaining to the sellers of the stock in the proportion to- which each was entitled thereto. By subsequent agreement between all of the parties, it was arranged that the corporation should pay these bills as presented, for its convenience and to maintain its credit, and that it should look to- the escrow fund in Grant’s hands for reimbursement. During the sixty-day period the plaintiff paid $1,103.05 under this arrangement, and it was for the recovery of the amount so paid that this suit was instituted.

The defendant having completed the work for which he was employed in behalf of Perry, presented a bill to- Perry’s New York counsel for the sum of $1,500.00. Counsel for Perry protested the amount of the fee charged and requested that it be reduced to $750.00, and, as testified by defendant, suggested that he request the plaintiff to- pay one-half of the bill rendered Perry.

No contention is made by the defendant that he performed any services for the plaintiff during the negotiations. It is conceded by him that the item of $750.00 was a part of the $1,500.00 fee primarily charged to Perry, and that in no sense [163]*163was the plaintiff indebted to him on this score until after certain) negotiations which will be hereafter adverted to.

The sixty-day period provided for in the escrow agreement having expired and all outstanding bills having been paid, plaintiff demanded of the defendant the payment of the sum of $1,103.05, the balance of the $5,000.00 turned over to defendant. It is the contention of defendant that pursuant to the request of counsel for Perry he entered into a verbal agreement with Williams and Bogert, under the terms of which he was to be paid the sum of $750.00 (the amount of the unsettled claim against Perry) ; that payment was to be made at the rate of fifty dollars per month; that plaintiff assumed the payment of the $750.00 claim of defendant against Perry; that the assumption of the debt was in the nature of a retainer fee, payable by plaintiff for a period of fifteen months; and that by virtue of this agreement defendant relinquished all claim against Perry.

The answer of plaintiff to this contention is that it did not assume the payment of defendant’s claim against Perry; that it was in need of the services of an attorney and that it merely agreed to employ defendant as retained counsel for an indefinite period at a salary of fifty dollars per month.

It is, in our view, unnecessary to deal with the legal question raised in the briefs and argument of counsel as to whether plaintiff, without taking corporate action, could be bound by the agreement of its officers to pay the allegel debt of Perry. It may be conceded, for the sake of argument, that the acts of plaintiff’s officers were of such a nature that ordinarily it would be bound if the contract entered into was an executed contract. The question in issue, in our opinion, is merely one of fact.

Before he could recover in his cross-action the sum of $750.00, the burden was upon the defendant to show by a preponderance of the evidence that the contract relied upon was fully executed and that plaintiff agreed for a valuable consideration to assume the payment of Perry’s debt. While [164]*164it is true that defendant testified that such an agreement was finally completed, the written evidence in the case does not bear out his contention.

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157 S.E. 773, 156 Va. 159, 1931 Va. LEXIS 184, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grant-v-virginia-beach-bus-line-inc-va-1931.