In re Disbarment of Evans & Rogers ex rel. Nelson

53 L.R.A. 952, 62 P. 913, 83 Am. St. Rep. 794, 22 Utah 866, 22 Utah 336, 22 Utah 368, 22 Utah 372, 22 Utah 374, 22 Utah 373, 22 Utah 388, 22 Utah 370, 22 Utah 366, 22 Utah 380, 1900 Utah LEXIS 35
CourtUtah Supreme Court
DecidedSeptember 15, 1900
StatusPublished
Cited by24 cases

This text of 53 L.R.A. 952 (In re Disbarment of Evans & Rogers ex rel. Nelson) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Disbarment of Evans & Rogers ex rel. Nelson, 53 L.R.A. 952, 62 P. 913, 83 Am. St. Rep. 794, 22 Utah 866, 22 Utah 336, 22 Utah 368, 22 Utah 372, 22 Utah 374, 22 Utah 373, 22 Utah 388, 22 Utah 370, 22 Utah 366, 22 Utah 380, 1900 Utah LEXIS 35 (Utah 1900).

Opinion

Baskin, J.

The facts disclosed by the record show, in several respects, a violation of professional ethics on the part of the respondents. It is stated in their brief that “Evans & Rogers did not employ Alfred H. Nelson, the latter employed the former on behalf of the widow and minor children of his deceased brother.”

■ If it be conceded that the widow for herself and minor children, had the right to authorize Alfred H. Nelson to employ Evans & Rogers as attorneys, when so authorized he could not, under that agency, legally make a contract with them for the payment of a fee one-third of which he was to receive as assistant attorney in the case. No contract for his compensation as attorney could be legally made except with his clients. No one can be both principal and agent in making a contract. A transaction "of that kind is against public policy. Harris, et al., v. Lynde & Hough, 49 Cal. 290; San Diego v. S. D. & L. A. R. R. 44 Cal. 113.

The stipulation in said contract,, for the payment of the costs of the litigation by Evans & Rogers, was against public policy and rendered the contract champertous, illegal and void. An attorney who, in the pursuit of his profession, makes an agreement which is so against public [378]*378policy, as the contract herein, is guilty of a flagrant breach of professional duty. ,

When Alfred H. Nelson was appointed administrator his duties as assistant attorney were within the scope of his duties as administrator, and after his appointment as such, he was only entitled to such compensation for his services in the case as the court issuing the letters of administration to him, might, upon a proper showing, allow. Yet notwithstanding this fact, after he had become involved and left the state and ceased to act as assistant attorney in the case, the contract between Thomas Nelson and Evans & Rogers was entered into, not for the benefit of Thomas Nelson but for the, express purpose of securing to Alfred H. Nelson his share of the fee provided for in his contract with Evans & Rogers.

At the date of the former contract Alfred H. Nelson had not performed the stipulations of his contract, and did not propose to do so. It does not appear that either the widow of Charles A. Nelson, or any one legally authorized to act for the minor children, ever knew of the existence of the contract with Thomas Nelson. Evans & Rogers state in their answer that when Thomas Nelson failed to perform his contract “it became and was necessary for the widow of the deceased Charles A. Nelson to secure and advance money for their attendance.” Evans & Rogers did not, as they had contracted to do' with Alfred H. Nelson, pay the costs of the litigation. For what they contracted to do in the premises they wei’e to receive only two-thirds of one-half of the amount which might be recovered from the railroad, yet notwithstanding they failed to do all they promised, on the distribution of the funds, they not only put into their own pockets the whole of the fee which they, under the contract, were to receive, but also the fee which Alfred H. Nelson was, under the agree[379]*379ment to receive through Thomas Nelson, amounting to $1,793.33, although the services for which one-third of one-half of the recovery was to be paid were never rendered. Certainly Evans & Rogers were not entitled to more than the amount of the fee, which they, by the contract,. were to receive. They were not entitled to more than that sum on a quantum meruit, as in an action to recover on a quantum meruit, notwithstanding their said contracts were void as against public policy and also void for champerty, their recovery would have been limited to the valuation which they themselves attached to their services in said contracts. Weeks on Attorneys, p. 702 and n. 1.

Neither Alfred H. Nelson or Thomas Nelson were entitled to receive any part or the amount recovered under said contract; therefore, as under the provisions of Sec. 2912 Rev. Stat. the widow and minor children of Charles A. Nelson were the beneficiaries of the action against the railroad company, they were entitled to the sum of $1,793.33 which Evans & Rogers received as an addition to their legitimate fee. This fact is now conceded in the following language of respondent’s brief, to-wit: “If Thomas Nelson did not perform the consideration he promised, viz.: secure the attendance of the non-resident witnesses, then Evans & Rogers, who by that contract were made trustees of one-third of one-half of the recovery, would have been grossly derelict in duty, violating the rights of their clients, the real beneficiaries, had they paid said Thomas.”

It appears from the record that Alfred H. Nelson, the administrator, was absent from the state when the order of distribution was made, and while it does not in express terms appear that Evans & Rogers obtained the order of distribution, it is inferable that they did. Whether [380]*380they did or did not procure that order, they knew its provisions and received one-half of the recovery, with full knowledge of all the facts in the case. Neither does it appear that the widow or any one legally qualified to act for the minor children appeared or was represented in the proceeding in which said order was granted, or that Evans & Rogers advised the widow, or any representative of the minor children, that the widow and minor children were entitled to $1,793.33 more than allowed them in the order of distribution.

In support of the demurrer to the complaint m the case of Thomas Nelson v. Evans & Rogers, on the appeal in this court, A. G. Horne, as attorney of David Evans, presented on the argument a brief in which was cited, among other cases, Croco v. Oregon Short Line Ry. Co., 18 Utah, 321, and Lyon v. Hussey, 31 N. Y. Supp. 281.

In the former case this court decided that “Under Sec. 3683 (C. L. U.) it was competent for an attorney and client to agree upon the attorney’s compensation, and such compensation may be made contingent upon success, and payable by percentage or otherwise, out of the proceeds of the litigation. But it was not competent for the attorney in consideration thereof, to agree to pay the advance fees and costs of suit thereafter to be commenced. ”

The contract upon which this decision was based was one made by Evans & Rogers in which they' had agreed, in consideration of receiving forty per cent, of the recovery in that case, to render their services as attorneys, -and in addition thereto to pay the costs required to be advanced to the clerk, and to the sheriff for serving the summons, ^nd whatever might be necessary to pay the fare of witnesses from Idaho to the place of trial.

By this citation this court’s attention was directly called to the fact that the present instance is not the only onedn [381]*381which the respondents have made champertous contracts in the pursuit of their profession as attorneys. ■ ,

■ In the last-mentioned case of Lyon v. Hussey, 31 N. Y. S. 181, Mr. Justice O’Brien, in his opinion at special term, said:

“It is true that champerty and maintenance are abolished in this state except so far as preserved by the Revised Statutes, and what remains would not literally touch an agreement such as is here sought to be enforced.

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53 L.R.A. 952, 62 P. 913, 83 Am. St. Rep. 794, 22 Utah 866, 22 Utah 336, 22 Utah 368, 22 Utah 372, 22 Utah 374, 22 Utah 373, 22 Utah 388, 22 Utah 370, 22 Utah 366, 22 Utah 380, 1900 Utah LEXIS 35, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-disbarment-of-evans-rogers-ex-rel-nelson-utah-1900.