Hough v. State

68 Misc. 26, 124 N.Y.S. 878
CourtNew York Court of Claims
DecidedMay 15, 1910
DocketNo. 9344
StatusPublished

This text of 68 Misc. 26 (Hough v. State) is published on Counsel Stack Legal Research, covering New York Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hough v. State, 68 Misc. 26, 124 N.Y.S. 878 (N.Y. Super. Ct. 1910).

Opinion

Swift, J.

The claimant seeks to recover for services rendered at the request of the Attorney-General, and under [27]*27a contract made with him as an expert witness in the so-called Consolidated Gas Case;

One of the questions in that case was, whether the Consolidated Gas Company could manufacture gas at eighty cents at a fair profit. The gas company had given a large amount of testimony as to the value of its property invested in that business as bearing upon the question of the cost of production. The Attorney-General and the counsel acting for him thought it very material and important to show that the value placed upon its property by the gas company was fictitious and very materially higher than the real value. To show that the values put upon its property by the gas company were much in excess of its real value, the Attorney-General, who was a party to the litigation, sought to obtain the testimony of expert witnesses who could testify that the testimony given by the expert Mayer, who was called by the gas company, as to values of its property, had placed too high an estimate upon the value of the property. Mr. .Kirby, who was one of the counsel representing the Attorney-General, was referred to the claimant herein as an expert- upon the value of such property, and communicated with him by letter which led to a personal interview about, the 1st of October, 1906. Mr. Kirby stated to the claimant in substance the point they desired to establish, and said he had a copy of some of the testimony of the gas company’s expert, Mr. Mayer, and would have more shortly, and wanted to know of claimant whether he would take the testimony and go over it and let Mr. Kirby know if he could give a value to this property substantially less than that given by Mr. Mayer; and also that they wanted the claimant to prepare an estimate of the cost of construction of an ideal modern plant, with a capacity equal to all the-present plant of the Consolidated Gas Company. The claimant said “ he could not say offhand whether he could testify that the value given by Mr. Mayer was higher than it should be; that he wanted an opportunity to go over the testimony.” In this interview claimant stated, in answer to a question by Mr. Kirby, that his terms would be a retainer of $1,000 and $50 a day while actually engaged. To this Mr. Kirby [28]*28assented. Some time afterward, claimant stated to Mr. Kirby that he had looked over the testimony .of Mayer and that he would be able to make an appraisal of this property of the Consolidated Gas Company which would be materially lower than that of Mr. Mayer. The terms of employment were again mentioned. The nest- day after this interview, Mr. Kirby received a letter from claimant, putting into writing the terms of his employment, to which Mr. Kirby replied that it was satisfactory and as he understood it. These two letters furnished the only written evidence of a contract. Claimant contends that the two letters made a complete contract, without any reference as to what testimony he should give. The State contends that it was a part of the agreement, and the very foundation of the contract, that claimant would and could make an appraisal of the' property, and testify to the correctness of the same, that would materially reduce the value of the property as testified to by Mr. Mayer.

I am of the opinion that the contract was, that the claimant should and would make an appraisal and testify to values that would be of material benefit to the Attorney-General, otherwise there was no inducement to employ the services of the claimant; and I am of the opinion that claimant did not perform this part of the contract. There-was only a reduction of about ten per cent, in the appraisal made by claimant from that of the witness Mayer; and this made so slight a difference in the cost of production of gas by the Consolidated Gas Company that it was of" no material benefit to the Attorney-General, and claimant was not called as a witness.

But, upon the facts as claimed by the State, I am of the opinion that the claim should not be wholly dismissed. According to the testimony of the State’s witnesses, claimant could not say what he could testify to, or what his appraisal might be, until he had gone over the testimony of the expert of the gas company. There was a mass of this testimony, and Kirby says that he gave claimant a copy of part of the testimony to go over at the first interview, and at that time claijn.ant stated that he would require a retainer fee of [29]*29$1,000 and $50 a day while actually engaged in making the appraisal and in testifying as an expert, to which Kirby assented.

A retainer in its legal sense is a sum of money paid to secure the services of the person to be employed. This sum was due as soon as the claimant accepted the employment. It is a fixed sum separate from his daily compensation, and I am of the opinion that he is entitled to this amount when he accepted the testimony of Mayer to examine and began his work. The retainer was in no way dependent upon his future work, or what the result of that work might be.

I am of the opinion that claimant is entitled to an award against the State in the sum of $1,000, and in addition thereto the sum of $350 for disbursements for accounts, with the consent of the State.

Murray, J., concurs.

Rodenbeck, J.

This claim is one to recover compensation as an expert in litigation involving the constitutionality of the so-called eighty-cent gas statute. The validity of the statute was attacked by the Consolidated Gas Company and expert evidence was introduced in the case, on the part of the company, showing, among other things, the value of its plant as bearing upon the question whether or not the company could profitably manufacture and sell gas at eighty cents per thousand cubic feet. The Attorney-General was a party defendant in this litigation and sought to meet the issues by showing that the valuations placed upon the plants by the company’s experts were excessive and exaggerated. The claimant insists that his contract is embraced in a letter sent by him to the State’s counsel, the terms of which were accepted in a letter in answer thereto; while the State claims that the letter merely expressed a part of an oral agreément preceding the writing of the letter. Under the letter the claimant insists that he was to receive certain compensation for “examining, appraising, consulting and testifying,” without any specification as to what his testimony should be; and the State urges that the real contract [30]*30made between the parties was that the claimant should testify to valuations substantially less than those produced in evidence on behalf of the Consolidated Gas Company.

The case opens with a letter from the State’s counsel, Gustavus P. Kirby, to David 1. Hough, the claimant, written to the latter September 20, 1906, while the claimant was in the Adirondacks, asking whether or not he would accept a retainer from the State and become a witness in the pending gas litigation and become “ one of our experts.” The claimant replied to this letter by another, dated the following day, in which he says: “At present I can see no reason why I may not serve you,” and states that he would see Kirby immediately upon his return. The claimant returned to Hew York about October first and, on the following day, had his first conversation with Kirby with reference to the gas litigation.

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Bluebook (online)
68 Misc. 26, 124 N.Y.S. 878, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hough-v-state-nyclaimsct-1910.