Idaho Gold Dredging Corp. v. Boise Payette Lumber Co.

133 P.2d 1017, 64 Idaho 474, 1943 Ida. LEXIS 20
CourtIdaho Supreme Court
DecidedFebruary 11, 1943
DocketNo. 7006.
StatusPublished
Cited by13 cases

This text of 133 P.2d 1017 (Idaho Gold Dredging Corp. v. Boise Payette Lumber Co.) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Idaho Gold Dredging Corp. v. Boise Payette Lumber Co., 133 P.2d 1017, 64 Idaho 474, 1943 Ida. LEXIS 20 (Idaho 1943).

Opinion

HOLDEN, C.J.

This is an action on an injunction bond prosecuted by the Idaho Gold Dredging Corporation (hereinafter called the mining company) against the Boise Payette Lumber Company and the United Pacific Insurance Company, a corporation, formerly United Pacific Casualty Insurance Company, to recover damages in the form of attorney fees alleged to have been necessarily incurred and paid out in procuring the dissolution of an injunction.

This is the third appeal of this case to this court (Idaho Gold Dredging Corporation v. Boise Payette Lumber Company et al, 60 Ida. 127, 90 P. (2d) 688; same, 62 Ida. 683, 115 P. (2d) 401, wherein a very complete statement of the facts will be found). On the second appeal this court reversed the judgment of nonsuit theretofore entered by the trial court, dismissing the action of the mining company, and remanded the cause for a new trial. The cause was tried commencing November 4, 1941, by the court, sitting with a jury. November 5, 1941, the jury found for respondents and against the mining company. Whereupon *477 judgment was entered on the verdict that the mining company take nothing against respondents, from which judgment the mining company appealed to this court.

An examination of the record discloses there are two questions presented on this appeal: First, did the trial court misdirect the jury? If that question is decided against the contention of the mining company, then; Secondly, is the verdict supported by competent and substantial evidence?

These questions will be discussed in the order stated. The determination of the first question necessitates reference to pertinent pleadings and evidence. In its second amended complaint (paragraph XI), the mining company alleged:

“That by reason and on account of said injunction [referring to an injunction enjoining the collection of a judgment in favor of the mining company and against respondents] the plaintiff has, been damaged in the reasonable sum of Five Thousand Dollars ($5,000.00) necessarily paid out and expended by the plaintiff as, and for, its necessary and reasonable attorney’s fees incurred and sustained by reason of the services of its attorneys necessarily done and performed at the request of the plaintiff, by reason and on account of the said injunction and in securing and maintaining the dissolution of the writ of injunction, from the time of making and filing of said injunction order on March 12, 1935, to and including the final judgment in said injunction proceedings, as aforesaid; * *

Defendants and respondents answered as follows:

“These defendants deny generally each and every allegation contained in paragraph XI of said second amended complaint, and deny that plaintiff, Mining Company, incurred any expenses for attorney’s fees or otherwise by reason of or because of the said temporary injunction having been issued by this court; but on the contrary these defendants allege the fact to be that whatever expenses the Mining Company incurred for attorney’s fees, or otherwise, were incurred for the purpose of avoiding a final judgment or decision in said cause in favor of the Lumber Company, and the issuance of a permanent injunction in said injunction suit.”

On the second appeal of the Mining Company to this *478 court, the record and opinion disclose the Mining Company attempted to prove, by parol evidence, that after the injunction suit was commenced by respondents against the Mining Company an oral agreement was made between the Mining-Company and its counsel for the payment of attorney fees for services to be rendered in that suit, under which the Mining Company incurred the- liability to pay for the services; that numerous questions were propounded to Atkinson, president of the Mining Company, by its counsel, to prove the making of the agreement and that such liability was necessarily incurred; that objections to such questions were sustained.

In remanding the cause for a new trial, on the second appeal, this court held the trial court erred in sustaining respondents’ objections, pointing out that:

“If a controversy arose between the attorneys and the mining company as to whether the contingent fee contract obligated the attorneys to perform all necessary services in defending against the injunction suit and because of such controversy the contingent fee contract was modified or amended, and if under and pursuant to the terms of the amendment the mining company thereafter actually paid counsel for such services, out of its' own funds, not with money which would have belonged to the attorneys under the contingent fee contract if not modified, then and in such case, the recovery of a reasonable attorney fee, not exceeding the amount actually paid and not exceeding the limit of the bond, may be had.” [Emphasis ours.]

Accordingly, on the trial of the cause following the second appeal, the trial court permitted appellant to offer proof in support of its contention that a controversy arose between it and its attorneys and that because of such controversy, the written contingent fee contract was amended and an oral agreement made for the payment of attorney fees for services to be rendered in the injunction suit, and that the liability therefore was necessarily incurred. We come now directly to appellant’s contention that certain of the trial court’s instructions were “confusing, contradictory, and misleading,” in that the court instructed the jury appellant “could not recover fees that were not ‘necessary,’ ‘required’ and ‘necessarily’ incurred on account of the injunction suit;” that the contingent fee contract “provided for all services rendered by attorneys, including those rendered in the injunction action, and made it the duty *479 of the attorneys to render services in the injunction action,” and that appellant “could not recover unless it showed by the preponderance of the evidence that the written contract was modified, amended or supplemented, to provide for payment of additional fees for the injunction action.”

It will have been observed that by paragraph XI of its second amended complaint appellant alleged, among other things, it had been damaged in the sum of $5,000.00 necessarily paid out “as, and for, its -necessary and reasonable attorneys fees incurred and sustained by reason of the services of its attorneys necessarily done and performed at the request of the plaintiff, by reason and on account” of securing the dissolution of the injunction (emphasis ours). Having alleged, in substance and effect, the services performed by its attorneys in securing the dissolution of the injunction were necessary and that the liability to pay for such services was necessarily incurred, how can appellant insist the court erred in instructing the jury it must find “that the fees which plaintiff claims it paid its attorneys for appearing in the injunction suit were necessarily incurred,” in view of the fact the court instructed the jury it must find the facts exactly as appellant alleged the facts to be.

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Bluebook (online)
133 P.2d 1017, 64 Idaho 474, 1943 Ida. LEXIS 20, Counsel Stack Legal Research, https://law.counselstack.com/opinion/idaho-gold-dredging-corp-v-boise-payette-lumber-co-idaho-1943.