Hanna v. Island Coal Co.

31 N.E. 846, 5 Ind. App. 163, 1892 Ind. App. LEXIS 205
CourtIndiana Court of Appeals
DecidedSeptember 27, 1892
DocketNo. 467
StatusPublished
Cited by16 cases

This text of 31 N.E. 846 (Hanna v. Island Coal Co.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hanna v. Island Coal Co., 31 N.E. 846, 5 Ind. App. 163, 1892 Ind. App. LEXIS 205 (Ind. Ct. App. 1892).

Opinion

Fox, J.

This was an action commenced in the Greene Circuit Court by the appellant against the appellee to recover the amount of an attorney’s fee for which the appellant claims the appellee was liable. The complaint filed was in two paragraphs. The court below sustained a demurrer to each paragraph. The appellant took proper exceptions to the ruling of the court, and refused to amend either paragraph of his complaint, whereupon the court gave judgment upon the demurrer in favor of the appellee.

The material allegations in the first paragraph were in substance as follows : That at the times mentioned in the complaint the appellant was an attorney at law, and being so, one Charles Stark employed him to bring a suit in the Greene Circuit Court against the appellee for five thousand dollars for personal injuries received by him in the appellee’s coal mines by reason of the negligence of the appellee, and to properly conduct the same to a final determination ”; that the appellant, as such attorney, did commence such action and spent much time and labor in preparing said suit [165]*165for trial * * * and in employing assistance in said cause and paying the expenses thereof,” and that by reason thereof the said Stark became indebted to him. It is then averred that the appellee, Avell knowing these facts, after the said suit had been commenced, and before trial, compromised and settled the cause of action with the said Stark without the knowledge or consent of the appellant, and paid him a sum of money unknown to the appellant, thus causing the suit to be dismissed; that before the said compromise was made the appellant gave notice in writing to the appellee of his rights in the premises, and that the amount due him for his services, and for the money he had expended, was unpaid. It is also alleged that at the time the notice was given and at the time the compromise Avas made the said Stark was in-solvent, Avhich fact was known to the appellee.

The second paragraph of the complaint is substantially the same as the first, Avith the exception that it charges that at the time the compromise Avas made, the appellee, well knowing that the said Stark was insolvent, entered into a collusion Avith him for the fraudulent purpose of cheating the appellant out of his lien for his services and expenses in said cause, and for the fraudulent purpose of cheating him out of his fees for such services and expenses,” compromised and settled said cause for a sum of money unknown to the appellant, and caused the same to be dismissed, Avhereby the said fee and lien ” Avere lost to the appellant. '

It thus appears that the only question submitted for the consideration of this court, is the action of the court below in sustaining a demurrer to each of the paragraphs of the complaint.

It is alleged in the complaint, and admitted by the demurrer, that the appellant made a Adalid contract with the said Stark to perform services for him in bringing an action against the appellee for personal injuries received by him resulting from the appellee’s negligence. As to what the facts were constituting the cause of action that Stark claimed to [166]*166have against the appellee we are not informed. The complaint simply informs us that the appellant was employed to bring suit against the appellee “ for personal injuries received by said Stark,” through the negligence of the appellee. It sufficiently appears, however, from the allegations of the complaint, that the appellant had a valid claim against Stark for services rendered.

There is no allegation that any money was expended by the appellant at the request of Stark, but, conceding that the appellant had the right to recover from Stark the money expended by him, as well as for the services rendered, the question is, do the facts stated make a cause of action against the appellee ?

The only statutory method of obtaining a lien by an attorney against his client is in this State given by section 5276, R. S. 1881, and this is only “on any judgment rendered in favor of any person or persons employing such attorney, to obtain the same.” The lien provided for in this statute can only be had in the manner prescribed, after a judgment is rendered.

In this case, the cause of action, whatever it was, was compromised before judgment, therefore the statute has no application. Under some circumstances, an attorney may hold a lien for fees and costs without the aid of the statute above mentioned.

In Puett v. Beard, 86 Ind. 172, the following statement is made : “ It is generally agreed, both here and in England, that a solicitor has a lien for his costs upon a fund recovered by his aid, paramount to that of the persons interested in the fund or those claiming as their creditors. * * The reason' .for this rule is that the services of the solicitor have, in a certain sense, created the fund, and he ought in good conscience to be protected.” This language is quoted with approval in the case of Justice v. Justice, 115 Ind. 201. See, also, Andrews v. Morse, 12 Conn. 444; Stratton v. Hussey, 62 Me. 286; Boyle v. Boyle, 106 N. Y. 654. In Justice v. Jus[167]*167tice, supra, it was decided that an attorney who, by his services, has procured a will to be set aside,- and established his client’s right to share in the estate of the testator, acquires an equitable lien for his fees upon the funds so secured to his client, and is entitled to priority of payment over a judgment creditor of the latter whose lien attached after the contract for such professional services was entered into.

In the case of Courtney v. McGavock, 23 Wis. 619, the court draws a distinction between an action for unliquidated damages and one upon a negotiable instrument or written contract. In the former case the court says the attorney has no lien upon the cause of action before judgment; in the latter, “ the lien attaches before judgment, from the moment the defendant has notice of the employment of the attorney, or from the commencement of the action; and any settlement made by the parties without discharging the fees of the attorney, is deemed as to him so far fraudulent and void.”

Ordinarily, however, an attorney acquires no lien for fees until after judgment; therefore, until after judgment, the client may settle and compromise and release the cause of action in any manner he pleases without consulting his attorney, and the attorney has no power to prevent it. Simmons v. Almy, 103 Mass. 33; Parker v. Blighton, 32 Mich. 266; Pulver v. Harris, 52 N. Y. 73; Roberts v. Doty, 31 Hun 128; Connor v. Boyd, 73 Ala. 385; Swanston v. Morning Star Mining Co., 13 Fed. Rep. 215; Young v. Dearborn, 27 N. H. 324. In such a case a lien can not be acquired before judgment, even by agreement between the attorney and client that will prevent the client from compromising and releasing the cause of action without the consent of the attorney, although the defendant may have notice of the agreement. Coughlin v. New York, etc., R. R. Co., 71 N. Y. 443; Kusterer v. City of Beaver Dam, 56 Wis. 471; Pulver v. Harris, supra. If the cause of action is one for unliquidated damages, and is not assignable, the client can not give his at[168]

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Bluebook (online)
31 N.E. 846, 5 Ind. App. 163, 1892 Ind. App. LEXIS 205, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hanna-v-island-coal-co-indctapp-1892.