Healy v. Robinson

11 Ohio N.P. (n.s.) 329
CourtOhio Superior Court, Cincinnati
DecidedApril 15, 1911
StatusPublished

This text of 11 Ohio N.P. (n.s.) 329 (Healy v. Robinson) is published on Counsel Stack Legal Research, covering Ohio Superior Court, Cincinnati primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Healy v. Robinson, 11 Ohio N.P. (n.s.) 329 (Ohio Super. Ct. 1911).

Opinion

TIoeeiieimer, J.

This cause came -on to be heard on the motion of defendant to strike out- certain allegations in the petition for .the reason that they are immaterial and are statements of evidence; and also on defendant’s motion to make the petition more definite and certain by setting out the value of services rendered and the amount claimed to be due; and also on defendant’s demurrer. The demurrer raises questions as to (a) the validity of the contract; (b) plaintiffs’ right to proceed herein in equity; (c) misjoinder.

The motion to compel plaintiffs to set out the value of the services rendered and to state the amount they seek to recover, necessarily assumes that the contract itself is void and that plaintiffs, if entitled to recover at all, are remitted to quantum, meruit, for, if the contract sued upon is valid and an action is maintainable thereon at law or in equity, it affords the basis of recovery because it measures the rights and obligations of the parties.

(a) . The contract shows that it was entered into by and between the parties thereto after the relation of attorney and client had commenced and it is with reference to the subject-matter in litigation. The contract appears to have been made voluntarily, because at the solicitation of the client. By it the client is-released of all payment of the reasonable value of services already rendered or thereafter to be rendered in prosecuting the client’s claims, against his father and in defending him against suits threatened by his father. While the client agrees to pay. all costs and expenses, the attorney’s rights are limited to a certain specific fund to be recovered or received in compromise, and in event this fund does not come into existence as contemplated, the attorney is to receive nothing.

During the oral argument it was contended that this contract, because entered into after the relation of the parties had commenced, and because of the subject-matter, was void, a claim which at page 13 -of their brief, defendants do not seem to seriously press.- But be that as it may, and notwithstanding the existence of some isolated authorities to the contrary, contracts [331]*331such, as the one sued on, are valid in law, unless set aside for undue influence, fraud or duress. Vanasse v. Reid, 111 Wisc., 303; Meyers v. Luzerne County, 124 Fed., 436; Rolfe v. Rich, 149 Ill., 436; Rowan v. Mali, 42 Md., 513; Reece v. Kyle, 49 O. S., 475; La Clede v. Keeler, 109 Ill., 385; Kisling v. Shaw, 33 Cal., 425.

It may also be noted in passing that in Carlton v. Dustin, 10 W. L. B., 294, and in Thirk v. Neible, 156 Ind., 66, the duress was manifest, and there was no allegation as here, of solicitation of the contract by the client, which latter, certainly for the purposes of pleading at least, might well be held to negative any presumption of. unfairness that might otherwise exist, if it were necessary.

(b). The contract then being valid, we are remitted to the question as to whether plaintiff may maintain an action in equity as he is endeavoring to do here. Had this contract contained an express assignment or express reservation of lien, there could be no doubt that the plaintiff .would have a concurrent remedy: either an action for conversion, where he would look to the individual responsibility of the trustee, or an action to compel an accounting in equity, following the fund itself, precisely as plaintiff is undertaking to do here.

In Wright v. Coxe, 15 How. (U. S.), 415, it was held', in substance, where a contract between an attorney and client had been entered into whereby the attorney was to receive a stipulated portion of the amount to be recovered, that the fund was chargeable'with a lien in favor of the attorney, and that equity would maintain jurisdiction to enforce the lien and compel an accounting if a more adequate remedy could thus be obtained than could be given in a court of law. In that case, in answer to the objection that plaintiff had an adequate remedy at law, the court say:

! ‘ There may be a legal remedy and yet if a more complete remedy can be had in chancery it is a sufficient ground for jurisdiction. ’ ’

And the same court also say:

“The evidence proves that the complainant was to receive a contingent fee of five per centum out of the fund awarded, [332]*332whether money or script. This being' the contract, it would constitute a lien upon the fund, whether it should be money or script. The fund was looked to and not the personal responsibility of the owner of the claim. ’ ’

What difference can there be in principle, where by fair construction the contract itself is construed to operate as an equitable assignment.. Under the authorities, no particular form is necessary in equity to constitute such an assignment, and the question would be one for the court, to be gathered from the intention of the parties, as evidenced in the language used and the circumstances. 4 Cyc., 46-47; 3 Pomeroy’s Eq. Jurisp., Section 1282.

By the terms of this contract plaintiff not only relinquished all claims for the reasonable value of services already performed and to be performed but he was to receive nothing; and the debt, if-any, was to be wholly extinguished, unless the specific fund in contemplation of the 'parties came into existence. His rights, therefore, were limited to that specific fund, and when it came' into defendant Robinson’s hands, equity would regard it, under' the circumstances and because of the evident intention of the parties, as found in the contract, as an equitable assignment, pro tanto, plaintiffs’ share, although no such assignment had been expressly agreed to, in haec verbis. Under such circumstances, cases such as are cited by defendant, wherein it appears that the party seeking recovery had no interest by the contract in the specific fund, or where the ordinary relation of debtor and creditor merely is created without limiting and restricting recovery to the specific fund to be created, or where the creditor may look to other funds (see for example, Kershaw v. Snowden, 36 O. S., 181; Christmas’ Admr., v. Griswold, 8 O. S., 558), are to he distinguished.

Under the circumstances as are here stated, it would seem that Gillette v. Hickling, 16 Ill. App., 392, is pertinent. In that case it was held that the rule, that an agreement to pay a debt out of the principal fund does not constitute an equitable assignment pro tanto that fund, does not'apply, where the creditor’s claim is by agreement to be extinguished unless realized out of such fund. In such case the agreement to pay out of that precise fund [333]*333and limiting the creditor thereto would operate as an equitable assignment pro tanto.

In Bennett v. Donovan, 83 N. Y. App. Div., 95, B, as the sucCesssor of one Regan, an attorney, brought suit to recover Regan’s interest-in .a contract of employment, claiming although there ivas no such assignment, that the contract operated as an equitable assignment to Regan of one-fourth of the interest to be recovered. Defendants in that case, it seems, contended, as it is contended here, that plaintiff must be remitted to an action at law to recover the value of his services. The court, however,.

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35 N.E. 352 (Illinois Supreme Court, 1893)
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Shirk v. Neible
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Myers v. Luzerne County
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Bluebook (online)
11 Ohio N.P. (n.s.) 329, Counsel Stack Legal Research, https://law.counselstack.com/opinion/healy-v-robinson-ohsuperctcinci-1911.