High Point Casket Co. v. Wheeler

182 N.C. 459
CourtSupreme Court of North Carolina
DecidedNovember 16, 1921
StatusPublished
Cited by12 cases

This text of 182 N.C. 459 (High Point Casket Co. v. Wheeler) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
High Point Casket Co. v. Wheeler, 182 N.C. 459 (N.C. 1921).

Opinion

MaukeR, J-

What real interest tbe defendant bas in tbis controversy we are unable to see. He bas to pay tbe judgment, in any event, and whether to tbe plaintiff, or one-third of it to tbe interveners, Messrs. Barringer and Strudwick, tbe attorneys of tbe plaintiff, can make no difference to him. A case directly in point is Newsom v. Russell, 77 N. C., 277, where tbe plaintiff was tbe assignee of tbe note on which tbe action was brought, and defendant alleged that it was assigned in fraud of tbe assignor’s creditors, tbe Court held tbis to be no defense, as tbe assignor was bound by bis assignment, though made in fraud of bis creditors, and then tbe Court inquired, “It is not tbe duty of tbe maker of tbe note to see to tbe application of tbe money, and it is even less bis duty to fight tbe battles of tbe bankrupt’s creditors. "What interest is it to him (defendant) if be is absolved from further liability by payment of bis debt upon a judgment regularly obtained against him ?” Here tbe parties are all before tbe court and will be concluded by its judgment. Tbe petition of intervention was filed in tbe case and copies of it duly served on tbe plaintiff and tbe defendant, who failed to answer it or otherwise plead to it, and tbe court gave' judgment by default against them. Tbis fully protects defendant in any payment be makes under tbe judgment of tbe court. And Brown v. Harding, 170 N. C., 253, 262 (S. c., 171 N. C., 689), is to tbe same effect as Newsom v. Russell, supra. But see, also, Wiggin v. Sweet, 6 Metcalf (Mass.), 194 (S. c., 39 Am. Dec. Extra Anno., 716); Black v. Kirgan, 28 Am. Dec., Extra Anno., 394; 6 Cyc., 631. Tbe party of record who can complain of a judgment of a court, and appeal therefrom, is one who is aggrieved thereby, in the sense that bis pecuniary interest is affected by it; one whose right of property, or interest, may be established or divested by tbe decree, as was said substantially by Chief Justice Shaw in Wiggin v. Sweet, supra, citing Smith v. Bradstreet, 16 Pick. (Mass.), 264; Bryant v. Allen, 6 N. H., 116. But however tbis may be, we are of opinion that tbe judgment of tbe court was right in itself.

There can be no question as to tbe definite terms of tbis contract for compensation of tbe attorneys, nor as to bow it should be ascertained and secured, nor can it be reasonably doubted that tbe parties intended that they should receive a certain or fixed portion of tbe judgment recovered. Tbe contract therefore constituted, at least, an equitable assignment of tbe judgment pro tanto. It was held in Costigan v. Stewart, 91 Pac. Rep. (Kansas), 83 (S. c., 11 L. R. A., N. S., 630), that an attorney, who is retained to conduct or to assist in conducting tbe prosecution of a proceeding under a contract by which be is to receive compensation out [463]*463of tbe fund recovered, is entitled to a lien upon such fund for his fees. And so in Svea Assurance Co. v. Packham, 92 Md., 464, at 477 and 478, the Court said that there was no evidence to show that the amount1 defendant agreed to allow the attorneys was unreasonable or excessive. Cases of that character are generally defended by all the means the law affords. They often result in several trials and usually the receipt of the compensation is greatly' delayed, when taken on a contingency. If the case is settled before it has taken its usual course, the attorney is undoubtedly benefited thereby, but the client is saved the necessity, and oftentimes hardship, of paying out cash, and has no personal liability for fees in the event of failure. Under such circumstances he must expect to, and usually does, give larger compensation, if successful, than he would if he agreed to pay a fixed fee, whether successful or not. When Mr. Packham made the arrangement for fees the insurers had not paid the insurance money, and when they did, they knew what he had agreed to allow. Yet they stood by without objecting to it, and permitted the attorneys thus employed by Mr. Packham to proceed, knowing the terms of their employment. The case of Davis et al. v. Gemmell et al., 73 Md., 530, is a conclusive answer to such objection by them now. There the attorneys were employed upon a contingent fee by Mr. Brydon, who had sued in his own name and recovered a judgment which was determined to belong to the North Branch Coal Company. Some of the stockholders objected to the allowance of the fee, but this Court said they “stood by and saw the work done — they neither interfered nor objected — and they cannot now be heard in a court of equity to except to that work being paid for out of the fund realized by the labor of these gentlemen, especially when they themselves (the exceptants) are seeking to reap the benefit of that very work and labor. Without citing other authorities on that subject, we are of the opinion that it would be inequitable to deprive the attorneys of the fees agreed to be allowed. See, also, note to the Costigan case, supra. It is said in 4 Cyc., 989, 990, and notes: While the law will scrutinize such transactions closely, an agreement is not necessarily invalid because the payment of the fee is made contingent upon the success of the suit or upon the happening of some other event, and such an agreement is not objectionable for want of mutuality. So, a contingent agreement to convey a portion of the land recovered by suit to the attorney for his fee will be specifically enforced, even though the land has greatly increased in value. Where the claim is assignable, the wording of the agreement for a contingent fee must in every case be examined to determine whether the parties intended an equitable assignment in favor of the attorney. Fitzpatrick v. Lincoln Sav., etc., Co., 194 Pa. St., 544; Howard v. Throckmorton, 48 Cal., 482; Martin v. Platt, 5 N. Y. St., 284; Chester v. Jumel, 125 N. Y., [464]*464237, 25 N. Y. St., 4, 2 Silv. Sup. (N. Y.), 159; 5 N. Y. Suppl., 809. If tbe property bas been converted into a fund, tbe attorney is entitled to-bis due share of tbe increased amount. Hand v. Savannah, etc., R. Co., 21 S. C., 162. Where tbe client repudiates bis contract, tbe attorney may compel bim to deliver so mucb of tbe proceeds recovered as will compensate bim or may have a qiersonal judgment for bis damages sustained by reason of tbe client’s failure to carry out bis contract. Hazeltine v. Brockway, 26 Col., 291. Similar agreements were beld to constitute equitable assignments in favor of tbe attorneys in tbe following cases: Hoffman v. Vallejo, 45 Cal., 564; Sammis v. L'Engle, 19 Fla., 800; Fairbanks v. Sargent, 104 N. Y., 108; Hagemann’s Estate, 5 Pa. Co. Ct., 576; The Alice Strong, 57 Fed., 249 (distinguishing Kendall v. U. S., 7 Wall. (U. S.), 113, 19 L. Ed., 85). A right of action is assignable in this State, but by assigning an aliquot part of tbe fund recovered, or tbe recovery, or judgment, as it may be denominated, tbe assignee gets no vested right in tbe cause of action, unless it is so stated or clearly to be implied. In this case tbe assignment is confined to tbe recovery or judgment itself. In 6 Corpus Juris, pp. 742, 743, it is stated that there are many cases which bold that an agreement with an attorney that be shall have as compensation a specific sum, or a stipulated percentage, to be paid out of tbe judgment recovered will, on tbe recovery of judgment, operate as an equitable assignment pro tanto; and this bas been so beld even where tbe action in which tbe judgment was obtained was on a cause of action for a tort in itself unassignable.

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Bluebook (online)
182 N.C. 459, Counsel Stack Legal Research, https://law.counselstack.com/opinion/high-point-casket-co-v-wheeler-nc-1921.