Henry R. Liles v. Bourgeois

517 So. 2d 1078, 1987 WL 851
CourtLouisiana Court of Appeal
DecidedOctober 7, 1987
Docket86-936
StatusPublished
Cited by1 cases

This text of 517 So. 2d 1078 (Henry R. Liles v. Bourgeois) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Henry R. Liles v. Bourgeois, 517 So. 2d 1078, 1987 WL 851 (La. Ct. App. 1987).

Opinion

517 So.2d 1078 (1987)

HENRY R. LILES A Professional Law Corporation, Plaintiff-Appellant,
v.
Dorothy Sells BOURGEOIS, Defendant-Appellee.

No. 86-936.

Court of Appeal of Louisiana, Third Circuit.

October 7, 1987.

*1079 Maurice Tynes, Lake Charles, for plaintiff-appellant.

Phillip W. St. Romain, Lake Charles, for defendant-appellee.

Before GUIDRY and YELVERTON, JJ., and CULPEPPER, J. Pro Tem.[*]

WILLIAM A. CULPEPPER, Judge. Pro Tem. The issue presented by this appeal is the validity of a contingency fee contract between an attorney and his client wherein the fee contemplated was to be based upon a percentage of the client's future inheritance from her mother.

Henry R. Liles, a Professional Law Corporation, filed suit on December 13, 1985 to recover a legal fee from the defendant, Dorothy Sells Bourgeois, as a result of plaintiff's representation of defendant in assisting her to obtain the maximum possible estate from her mother, Grace Sells, upon her death. The fee was based in part on a percentage of the amount recovered by defendant from her mother's estate. The trial court held the contract invalid under LSA-C.C. Article 1887 and rendered judgment in favor of plaintiff in the amount of $15,000.00, on the basis of quantum meruit. Plaintiff appeals seeking $43,186.72, less a credit of $1,161.00, based on the contract. We affirm.

The trial court gave written reasons which we adopt in part as follows:

"The question before the court can be stated concisely. Is a contingency fee contract of employment with an attorney-at-law prohibited by Louisiana law wherein the fee is based upon a percentage of a future inheritance to be received by the client? As presented to this court, it is purely a legal question but an abbreviated statement of facts would be helpful.

On June 18, 1984 Dorothy S. Bourgeois and Henry R. Liles entered into a written agreement entitled, `Contract of Employment' which is Exhibit P-1. At the time of the agreement, it was Ms. Bourgeois's [sic] concern that her mother, Mrs. Grace Sells, was not competent to conduct her own affairs and that her estate was being depleted. The job description for the attorney, Liles, stated that he was to `prosecute, negotiate and settle all actions of causes or claims concerning (sic) with the interdiction and succession of Grace Sells.' The contingency fee arrangement was embodied in the following language:

`In consideration for such services rendered and to be rendered, client agrees to pay attorney a sum equal to one-fourth of whatever sum she acquires after the date of the execution of this contract, by donation, inheritance, or other means from Grace Sells [sic] estate, whether movable or immovable, tangible or intangible; whether by suit, settlement or any other manner, ...'

The contract went on to provide for a minimum fee to be received by the attorney based upon an hourly amount for work done. The paragraph ends with this sentence:

`Attorney will not receive an ownership interest in any property acquired as set forth above, and will be paid in cash or its equivalent.'

Pursuant to this contract, the attorney filed a petition for the interdiction of Grace Sells. After the death of Grace Sells, the attorney continued to represent the defendant up to the point that the defendant was placed in possession of property from the succession of Grace Sells having a value of $172,746.86.

There is no contention that the lawyer failed to fulfill his duties as contemplated by the parties under the agreement. The defendant accepts, with only slight reluctance, the following assessment of the lawyer's involvement:

a) The contract was executed in good faith.

b) The lawyer's performance was more than acceptable to the defendant.

c) The contingency fee arrangement did not violate the standards of fairness recognized for such arrangements.

*1080 d) The lawyer had no certainty or special knowledge that the estate of Grace Sells would be solvent and would produce anything toward his fee.

It is simply the contention of the defendant that the contract is unenforceable as being prohibited by general and special laws of Louisiana as discussed below.

Contingency fee contracts, now in vogue, are of relatively recent origin and could not have been specifically contemplated by the original redactors of the pertinent codal articles. To determine whether the articles apply to a situation not foreseen at the time of adoption, it is helpful to examine the underlying policy of the rule.

At the time of the execution of the contract, Article 1887 of the Louisiana Civil Code read:

`Future things may be the object of an obligation.

One cannot, however, renounce the succession of an estate not yet devolved, nor can any stipulation be made with regard to such a succession, even with the consent of him whose succession is in question.'[1]

This article was in our Civil Code of 1808, was found in the Code Napoleon and can be traced back to Roman Law. [Planiol, Civil Law Treatise, Vol. 2 Part 1 § 1013, p. 583 (1959).] As pointed out in one case, The Code establishes a public policy prohibiting dealing in the rights whose coming into existence require the death of a living person; three articles of the Civil Code were cited in that connection. Schiffman v. Service Truck Lines, Inc., 308 So.2d 824 (La. App. 4th Cir.1974) La.C.C. Arts. 984, 1976 and 2452 [now Art. 1976 and 2454].

* * *

Planiol says that a motive behind the prohibition was the immorality of parties speculating on the deaths of another, usually a relative; or the danger of non-relatives, having obtained an interest in the death of a living person, considering crime to hasten its commission. Civil Law Treatise, Vol. 2, Sections 10, 12, to 10 through 15, Pages 583 and 584 [1959].

One recent law review writer suggested that the prohibition is there because it is the kind of legal transaction which adversely effects `a matter of public order.'[2]

It was said in the Schiffman case, supra, that agreements dealing in rights to the succession of a living person were:

`... contrary to morals in the sense of Civil Code, Article 1892 and "contra bonos mores (contrary to moral conduct) or to public order" in the sense of Civil Code Article 1895.' (Pg. 826)

In that case, the issue was whether or not the prohibition against the dealing in a succession extended to compromising a death claim before the demise of the injured party. A reading of the opinions of the majority and the dissent demonstrate that there is no disagreement that `dealing in' a succession would be clearly violative of the state's public policy.

The wide effect of the prohibition is accepted by all current commentators on the subject. In the case of Beecher v. United States, 280 F.2d 202 (3rd Cir.1960), a federal tax decision turned on the enforceability of a property settlement agreement wherein the decedent obligated himself to leave each of his two sons one-fourth (¼) of his net estate. A law review writer said, matter of factly:

`However, the Louisiana prohibition against contracts with respect to unopened *1081 successions will probably prevent a Louisiana husband from taking advantage of the Beecher decision.[3]

Also, see the operation of the prohibition in

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Bluebook (online)
517 So. 2d 1078, 1987 WL 851, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henry-r-liles-v-bourgeois-lactapp-1987.