Huston v. Schohr

146 P.2d 730, 63 Cal. App. 2d 267, 1944 Cal. App. LEXIS 937
CourtCalifornia Court of Appeal
DecidedMarch 13, 1944
DocketCiv. 6992
StatusPublished
Cited by9 cases

This text of 146 P.2d 730 (Huston v. Schohr) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Huston v. Schohr, 146 P.2d 730, 63 Cal. App. 2d 267, 1944 Cal. App. LEXIS 937 (Cal. Ct. App. 1944).

Opinion

SCHOTTKY, J. pro tem.

Plaintiff and respondent commenced an action against defendant and appellant upon a promissory note in the principal, sum of $15,000, executed on December 29, 1941, in favor of the law firm of Huston, Huston & Huston, and assigned by said firm to respondent.

Appellant filed an answer setting forth that said law firm of Huston, Huston & Huston had been her attorneys for more than six years prior to the date of the execution of said promissory note; that the services rendered by them were of a value not in excess of $3,000; that respondent Robert W. Huston, acting for said firm, and while the confidential relation of attorney and client existed, shortly prior to the date of the execution of said note, promised, agreed and represented to appellant that he had obtained for her a loan for *269 $65,000, to be secured by a mortgage or deed of trust upon her lands; and that said respondent attorney demanded that appellant sign said note in sum of $15,000, in consideration of his securing said loan, and that she, reposing confidence and trust in said attorneys, and believing that said loan had been obtained, signed said note; that said note was signed by her to settle all past claims of said law firm, which did not exceed $3,000, and for securing said loan, which services in obtaining said loan were worth to appellant the sum of $12,-000, had said loan been obtained, but that said loan was never obtained- and that there was a partial failure of consideration as to the sum of $12,000.

Appellant set forth the further defense that at the time she signed said note she relied upon the fiduciary trust relations existing between respondent and respondent’s assignors and appellant, and that respondent and respondent’s assignors obtained a personal advantage over appellant in that there was not sufficient consideration for said promissory note and that said promissory note was secured by undue influence.

Appellant set forth the additional defense that in the year 1941 she was badly in need of moneys to manage her properties, that said fact was known to respondent, and that respondent agreed to obtain for appellant a loan of $65,000, upon her promise to pay him reasonable compensation therefor; that on or about the date of said note, respondent reported to appellant that he had secured a definite lender who would lend her said sum of $65,000, and stated to appellant that if she would sign said note for $15,000, said law firm would consummate said loan; and that appellant, relying on said promises and reposing confidence in said attorneys, signed said promissory note; that respondent and respondent’s assignors had not obtained said loan and did not obtain same, and that the signing of said note was secured by the undue influence of respondent in violation of the fiduciary and trust relations existing between them.

Upon the trial respondent testified that said promissory note had been delivered to him in Colusa by appellant in payment of the attorneys’ fees of the law firm of Huston, Huston & Huston to December 29, 1941; that the amount had been agreed upon in his office in Woodland a few days prior to its execution in the presence of appellant and her *270 husband; that the note was given in satisfaction of the legal services of said firm to appellant; that said note had been assigned by said firm to him and that no payments had been made thereon. The note was then introduced in evidence and plaintiff and respondent rested.

Appellant then moved for a nonsuit, contending that inasmuch as the relation of attorney and client existed between respondent and appellant it was incumbent upon respondent to show in his prima facie case that no advantage was taken of appellant, that she had been fully advised as to the transaction, and that the amount in the note was a fair price. The court denied the motion for a nonsuit.

Appellant thereupon testified substantially in accordance with the allegations of her answer hereinbefore set forth, also giving in detail her version of the various items of legal and other services rendered for her by respondent and respondent’s assignors. She also testified that she had first employed Arthur C. Huston, Sr., in 1935 to look after her legal business at an agreed annual retainer of $250.

N. P. Schohr, husband of appellant, was then called as a witness by appellant and testified that he was present in the lobby of the hotel at Colusa when respondent “came over with a ready made note for her to sign”; that respondent stated that he wanted the note signed so it could be included in that year’s income taxes, and that he had secured the loan for the $65,000; that appellant had agreed to pay respondent the $15,000 out of the proceeds of this loan and that respondent stated if the loan was not secured he would destroy the note.

The appellant thereupon rested her case. Respondent in rebuttal testified:

“Mr. and Mrs. Schohr were in my office in Woodland and the matter of how much fees we were going to charge came up and I told them I didn’t know, I hadn’t discussed the matter with my father. About three or four days before the note was signed, they were in my office and I told them then I had discussed the matter with father and that in our discussion we had agreed we would charge Seventeen hundred and fifty and this fifteen thousand dollars and Mr. Schohr says, ‘That is reasonable enough,’ and Mrs. Schohr says, ‘Fine.’ I said, ‘All right, we will let it go,’ I said, ‘The reason we want a note is so we can turn it in on this year’s *271 income tax and not the following year.’ About three or four days later I was coming to Colusa and made an appointment to meet them in the Riverside Hotel at Colusa. They signed the note and gave it to me, without attorney’s fees and without interest. That was the reason the note was given.”

Respondent denied that anything was said at any time as to the payment of the $15,000 being contingent upon the securing of the loan, and stated that the amount of the note was what he and Arthur Huston, Sr., had concluded was due them for services rendered over the seven year period, and that the amount was agreed to by both appellant and her husband. Respondent also testified in much detail as to the various legal matters attended to by said law firm, and the various services rendered during a period of nearly seven years. These services included, among other things, the representing of appellant in protecting her interest as an heir of the Browning estate and as an owner of one-third interest in the Browning Company and the estate, and the settlement of various tax matters connected therewith, at the conclusion of which liquidation appellant received as her individual share, free and clear of incumbrances, property of the approximate value of three hundred thousand dollars ($300,-000).

The deposition of Arthur C. Huston, Sr., was then offered by appellant. In said deposition the said witness testified that appellant had employed his firm on June 16, 1935, to look after her legal affairs; that there was never any discussion or agreement with him as to attorneys’ fees or compensation. He then detailed the various services rendered by him up to the time of his illness in April, 1941.

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Bluebook (online)
146 P.2d 730, 63 Cal. App. 2d 267, 1944 Cal. App. LEXIS 937, Counsel Stack Legal Research, https://law.counselstack.com/opinion/huston-v-schohr-calctapp-1944.