Helms v. Bulington

1937 OK 433, 70 P.2d 65, 180 Okla. 390, 1937 Okla. LEXIS 435
CourtSupreme Court of Oklahoma
DecidedJune 29, 1937
DocketNo. 27332.
StatusPublished
Cited by5 cases

This text of 1937 OK 433 (Helms v. Bulington) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Helms v. Bulington, 1937 OK 433, 70 P.2d 65, 180 Okla. 390, 1937 Okla. LEXIS 435 (Okla. 1937).

Opinion

CORN, J.

This is an appeal by T. R. Helms, as administrator of the estate of J. C. Helms, from a judgment of the district court of Oklakom'a county. For convenience the parties will be referred to as in the trial court.

In February, 1927, J. C. Helms and Miss Bulington, his stenographer, were in an automobile accident in which she was seriously injured. Mr. Helms tendered his services, telling her there would be no attorney’s fees, and with the aid of several other attorneys filed suit for her, and also a separate suit for himself. To his suit the defendant filed a cross-petition.

Upon trial Miss Bulington recovered a judgment for $12,000. Helms then began negotiations looking toward compromise of the judgment, and eventually told the attorneys for the insurance carrier that Miss Bulington would accept $9,000, and this settlement was made April 21, 1928, Helms at the same time dismissing his action. All the negotiations were carried on without Miss Bulington’s knowledge. Helms suggested to the attorney for the insurance carrier that two releb.se stipulations he drawn, one showing settlement with Miss Bulington for $7,250, and one in the amount of $1,750 for himself; to this the attorney for the defendant agreed, and the settlement was completed.

Helms then called on Miss Bulington in Tulsa and informed her that settlement had been iriade for $7,250, and from this deducted $1,574, the amount he had advanced to her, and $750 more as fees for the attorneys who tried the case, but it was never shown that they received fees for their services.

In April, 1933, the plaintiff learned that her case had been settled for $9,000 and in January, ' 1934, this suit was filed. The defendant Helms answered, but in April, 1935, while this action was pending, he died, and T. R. Helms, his brother, was appointed administrator. The plaintiff then filed her motion ¡and application for re-vivor against the administrator, in an action for fraud and money received in the amount of $1,750 and $750, but the claim for $750 was withdrawn. The ease was tried in February, 1936, resulting in a verdict for the plaintiff for $1,750, with inter- ■ est, and the defendant appeals, making six assignments of error to this court, wh’ch are dealt with 'in seven propositions, and which will be discussed in the order submitted.

The first proposition urged by the defendant is that declarations, made by one since deceased, as to facts relevant to the issues are admissible in evidence when it appears they were against his pecuniary interest when made and related to a matter of which he was personally cognizant, and that he had no probable motive to falsify the facts.

This contention is undoubtedly made in an effort to show that testimony in respect to the deceased’s statements during the negotiations for settlement could not have been properly admitted, unless made under such circumstances that there was no reason nor excuse for his making a false statement, the reasoning of the defendant being that the statements were merely made as “sales talk,” and since the deceased was cognizant of all the facts, he would not have made the statements in regard to the disposition of the amount paid in settlement, had he intended them to be binding, ’and that they are not to be otherwise considered.

While this is generally true, and the rule as to the admissibility of such statements is correctly stated, there are other considerations here. The authorities quoted by the defendant are cases in which the issue of fraud is not involved, 'as in the present case. In all cases where fraud is alleged, a greater latitude is allowed in the discretion of the court for the introduction of evidence going to prove such fraud. The *392 defendant seems to think that snch statements should have been rejected, since he had a motive for misrepresentation, this motive being one of a controversial nature, by which he was attempting to influence the settlement. Taken alone this might be true, but when considered in the light of l'ater circumstances the trial court was correct in admitting these statements' as tending to show- the deceased’s declared intention in respect to the money paid Miss Bul-ington, and that the statements were a part of the general scheme of the fraud perpetrated.

In the second proposition the defendant states that “declarations made by a party in casual conversation are justly said to be the weakest of all evidence.” In answering this proposition one question should be asked: Were these declarations Helms made to Judge Owen made as part of a casual conversation, or were they a part of a formulated plan to deprive Miss Bul-ington of a part of the money she was to receive? The settlement was made upon Helms’ representations as to what Miss Bulington would settle for; the insurance company was paying $9,000 in satisfaction of her $12,000 judgment, and Helms represented that such settlement was satisfactory with her, the settlement being made on this basis. The conversation concerning which the trial court admitted certain testimony, was not casual, but was vital to the negotiations conducted in settling the dase. From the settlement finally made by Judge Owen and Helms it is apparent that his statements were believed and relied upon. Reliance was placed in the statements Helms made, and this being true and the settlement being had as ¡a result of his representations, said statements were material and properly admitted in evidence by the trial court.

Next the defendant contends that “oral evidence relied upon to enforce an obligation by a person deceased should be clear, positive, and convincing.” By itself, with no other circumstances to consider, this is a proper statement of the law. However, a review of the authorities cited by the defendant reveals that they are Cases based upon actions on contracts, and are not concerned with the propositions of fiduciary relationship of attorney and client such as we have here.

As a client of J. O. Helms, the plaintiff had every right to rely upon the truth of his statements.

It is true that certain oral evidence was admitted at the trial, and the defendant is correct in saying that such evidence must be clear and convincing to enforce an obligation. This testimony at the trial might not be sufficient if taken alone. However, it is not directed so much toward attempting to show a contract between Helms and Miss Bulington as toward showing the general circumstances surrounding the whole affair. The plaintiff is trying to prove one act, the act of defrauding her of money due her, and these oral statements were properly admitted, not as tending to prove a contract under which Helms obligated himself to her and which the defendant now denies, but as further circumstances of fraud, the issue which the plaintiff necessarily had to prove in order to recover.

By proposition 4 the defendant sets up that fraud is never presumed, but must be proved by clear and satisfactory evidence. And “when a transaction is fairly susceptible of two constructions, the one which will free it from imputation of fraud will be adopted.” In behalf of this the defendant asserts that there is no evidence of fraud, stating that the evidence shows without conflict that the insurance company would not settle with Miss Bul-ington unless settlement was perfected in both cases, and that there was no offer by the insurance company to settle Miss Bulington’s case for $9,000.

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Bluebook (online)
1937 OK 433, 70 P.2d 65, 180 Okla. 390, 1937 Okla. LEXIS 435, Counsel Stack Legal Research, https://law.counselstack.com/opinion/helms-v-bulington-okla-1937.