In Re McDonald

113 P.2d 790, 112 Mont. 129, 1941 Mont. LEXIS 50
CourtMontana Supreme Court
DecidedMay 29, 1941
DocketNo. 7,979.
StatusPublished
Cited by7 cases

This text of 113 P.2d 790 (In Re McDonald) is published on Counsel Stack Legal Research, covering Montana 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 McDonald, 113 P.2d 790, 112 Mont. 129, 1941 Mont. LEXIS 50 (Mo. 1941).

Opinion

MR. CHIEF JUSTICE JOHNSON

delivered the opinion of the court.

This is a disbarment proceeding brought by Mrs. Ike Sanders by sworn complaint shortly before her death. The court appointed the Honorable C. E. Comer, then a practicing member of the Montana Bar, to make an investigation. He recommended prosecution but withdrew on account of his appointment as a District Judge of the Fourth Judicial District. The Honorable W. T. Pigott and the Honorable Walter Aitken, practicing members of the Montana Bar, were then appointed Eeferee and *131 Special Prosecutor, respectively, and the latter thereafter filed an amended complaint. The charge is that the accused was guilty of deceit and fraud practiced on a client.

There are two specifications relating respectively to the transactions involved in causes Nos. 8086 and 8137, Sanders v. McDonald and Sanders v. Lucas and McDonald, 111 Mont. 599, 111 Pac. (2d) 1041, and 111 Mont. 604, 111 Pac. (2d) 1043. For further particulars, reference is made to the opinions in those cases.

The first specification relates to the action of the accused in obtaining a deed in his wife’s name for Mrs. Sanders’ undivided two-thirds interest in two sections of land under the circumstances described in cause No. 8086. The second relates to his action in obtaining in his own name the option on the Lucas one-third interest in the same lands under the circumstances described in cause No. 8137.

The answer places in issue the material allegations and admits that the accused claims to be the owner of the full legal and equitable title to the undivided two-thirds interest under the deed, and also to be the beneficial owner of the option for the Lucas one-third interest.

The judgment rolls in the two cases were admitted without objection as to the material portions, which are agreed to include the evidence given at the trials and the depositions of the accused and his wife. The unsworn statement of Mrs. Sanders was excluded, but the accused quotes portions of it in his briefs. Certain oral testimony was heard by the Referee, including that of the accused, his wife and Wilbur Sanders, Mrs. Sanders’ son.

In his report the Referee made under the heading “Memoranda” a general statement of the evidence in which he said with reference to the first specification:

“The Accused testified that in the autumn of 1932 or spring of 1933, soon after settlement of her husband’s estate, Mrs. Sanders asked him what he would charge to attend to her legal affairs, and that he said he would gladly do so for a retainer of $500.00 a year. She did not in words accept the offer, but ex *132 pressed no dissent, and that for more than five years she consulted him upon legal matters, many times, ‘I would say fifteen or twenty times a year. No, I am not sure’ whether it was fifteen or twenty times. No other person was present when the agreement was made; no memorandum was made of it, nor did he even send her a bill. By word of mouth he had asked for payment, but upon her plea of lack of money, he did not press for payment, even on account. He testified that he kept no books at all for entry of charges for professional services; all he kept or had was a record of cash received and cash paid out, and check stubs. During the five and a half or six years of service, nothing was paid on the $500.00 yearly retainer. Taking at full face value his testimony in respect of the services and their value, and giving him the benefit of any doubt, the fact is established that the matters upon which she consulted him ‘fifteen or twenty times a year’ were, without exception, so far as he disclosed, of small importance and of little, if indeed any, difficulty. Many of them are almost trifling in character; most of them were routine and simple, requiring a minimum of time and legal knowledge. The Referee thinks that the value of the services did not exceed an average of $60.00 to $80.00 a year, or a total of $300.00 or $400.00 for the five-year period. Notwithstanding the circumstances which were so unusual and peculiar as to cast doubt upon his testimony that such an agreement was made, — despite such of his conduct and statements as tend to show that the minds of the Accused and Mrs. 'Sanders did not meet, — the Referee, upon consideration of all the evidence adduced, after long hesitation has arrived at the conclusion that he should not find that the agreement was not entered into. To find otherwise would be tantamount to the direct charge of flagrant perjury by the Accused; this, the Referee thinks, would not be justified by the evidence before him. But this conclusion does not preclude further inquiry with respect to the agreement. Such inquiry is demanded by law, as well as by the sanctions of morality. * * *
“The agreement as to the Accused’s compensation for services which might be rendered in the future was neither fair nor *133 reasonable to the client. The duty of her trusted counsel and fiduciary was clear; it was to name or suggest a compensation which, in view of all the conditions and circumstances known to him, would, in his unbiased and honest judgment, be reasonably proportionate to the worth of the services he anticipated might or probably would be required. Instead of discharging that duty, he violated it by naming, and securing an agreement for, compensation so grossly disproportionate to the value of the services he had any reason to think might be required as to be exorbitant. It bears the imprint of undue influence. It is pregnant of evidence that advantage was taken of the client. His client’s holdings were of very modest value; his long experience as the attorney for her husband and herself had made him familiar with what services they had required in legal matters, and he knew that they had been comparatively few and not of great moment or value. He had no reason to believe that Mrs. Sanders would require in the future the rendition of more, or substantially more important or difficult, services than those theretofore performed. There were no pending law suits, nor threat thereof, nor were difficulties apprehended. The yearly fee was a sum equal to about five per cent, of the gross value of her worldly possessions. And it was equally his duty thereafter to charge less than the agreed amount whenever the value of his services fell substantially below it. This duty, also, was not discharged. It was, and continues to be, defiantly flouted and persistently violated. When he became aware, as he did, that his services were or had been reasonably worth — that is, he had earned — some sixty to eighty dollars (or less) a year, his duty was so clearly apparent that it need not be stated. * * *
“The incontinent eagerness of the Accused to acquire for a consideration, asserted by him to have been $2,500.00 (but which in fact did not, the Referee thinks, exceed $400.00), his client’s property which he believed fairly and reasonably worth $36,000.00 at the least, excluded an equal or similar avidity to serve his client by preventing a purchase by A. M. MacDonald *134 from her of the same property at an inadequate price.

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Related

Curry v. Hoven
487 P.2d 295 (Montana Supreme Court, 1971)
Dahood v. McDonald
372 P.2d 928 (Montana Supreme Court, 1962)
Hart v. Honrud
309 P.2d 329 (Montana Supreme Court, 1957)
Hankins v. Waitt
189 P.2d 666 (Montana Supreme Court, 1948)
Mitchell v. McDonald
136 P.2d 536 (Montana Supreme Court, 1943)

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Bluebook (online)
113 P.2d 790, 112 Mont. 129, 1941 Mont. LEXIS 50, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-mcdonald-mont-1941.