In re Wilson

12 F. 235, 2 N.Y. Civ. Proc. R. 343, 1882 U.S. Dist. LEXIS 105
CourtDistrict Court, S.D. New York
DecidedJune 1, 1882
StatusPublished
Cited by16 cases

This text of 12 F. 235 (In re Wilson) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Wilson, 12 F. 235, 2 N.Y. Civ. Proc. R. 343, 1882 U.S. Dist. LEXIS 105 (S.D.N.Y. 1882).

Opinion

Bhown, I). J.

It is not disputed that the sum of $826.69 would be a fair compensation to the petitioner for his services to the bankrupts in obtaining the judgment against Hiñe and Phillips in May, 1879. Nothing, however, has been recovered thereon. All „ claims of the petitioner, aside from those connected with that judgment, have been paid, and the only question presented is whether the petitioner has a right to be paid the balance of $782.83 due to him for his services and costs in obtaining this judgment out of the proceeds collected by the assignee, through his subsequent attorneys, upon the two Wilson judgments recovered in January, 1879.

The effect of the agreement of June 7, 1879, between the assignee and the petitioner, was to preserve whatever lien or equitable rights the petitioner then had. It was sufficient for this purpose; it was not intended for any other purpose; it was not approved by the court; and if its terms were in fact such as to enlarge the petitioner’s claims beyond his then existing legal lien, it would not bind the bankrupts’ estate, and the petitioner would be obliged to resort to his personal remedy against the assignee. The assignee, however, took the bankrupts’ estate charged with whatever legal or equitable lien existed against it in favor of the petitioner, and by the agreement then made these liens were preserved as they existed at that date.

On the part of the assignee it was contended that nothing having been collected by the petitioner upon the two judgments against James Wilson, the attorney’s lien thereon was limited to his taxed costs and reasonable compensation in obtaining those judgments. The petitioner contends that his general lien for his whole bill, which legally attached upon the papers in his hands, including the notes upon which the judgments w'ere maintained, followed the judgments and legally bound whatever money was subsequently collected thereon by the assignee.

After examination of the numerous authorities on this subject, English and American, I am satisfied that the claim of the petitioner cannot be sustained, and that an attorney has no general lien upon an uncollected judgment for services in other suits, but only a particular lien for his costs and compensation in that particular cause.

[238]*238An attorney's lien, as now generally recognized, is of two kinds: First, a general lien resting wholly upon possession, which is a mere right to retain, until-his whole bill is paid, all papers, deeds, vouchers, •etc., in his possession upon which, or in connection with which, he has expended money or given his professional services. This “retaining lien” is a general one for whatever may be due to him; and, though a client may^hange his attorney at will, if the latter be without fault and willing to proceed in pending causes, none of the papers» or vouchers can ordinarily be withdrawn from him except upon payment of his entire bill for professional services. In re Paschal, 10 Wall. 483, 493 — 6; In re Brown, 1 N. Y. Leg. Obs. 69; In re Broomhead, 5 Dowl. & L. 52; Blunden v. Desart, 2 Dru. & Warr. 423; Ex parte Nesbitt, 2 Sch. & Lef. 279; Ex parte Sterling, 16 Ves. 258; Griffiths v. Griffiths, 2 Hare, 592; Ex parte Pemberton, 18 Ves. 282; Lord v. Wormleighton, 1 Jacob, 580; Bozon v. Bolland, 4 Myl. & C. 354, 356; Ex parte Yalden, L. R. 4 Ch. Div. 129; Colmer v. Ede, 40 Law J. (N. S.) Chanc. 185; Hough v. Edwards, 1 Hurl. & N. 171; Cross, Lien, 216; Stokes, Attys.’ Liens, 28, 38; 2 Kent, *641. This lien, like other mere possessory liens, is, however, purely passive, being a bare right to hold possession till payment.

The articles cannot be sold or parted with without loss of the lien, nor can any active proceedings be taken at law or in equity to procure payment of the debt out of the articles so held. Cross, Lien, 47, 48; Thames Iron Works v. Patent Derrick Company, 1 Johns. & H. 93; The B. F. Woolsey, 4 Fed. Rep. 552, 558. The statute of this state passed May 8, 1869, (Laws 1869, c. 738,) which was designed to afford means of realizing payment upon such mere possessory liens, applies Only to liens “upon any chattel property.” Mere choses in action, such as the notes or demands placed in the petitioner’s hands for collection, are not “chattel property,” (2 Bl. *387; Ingalls v. Lord, 1 Cow. 240; Ransom v. Miner, 8 Sandf. 692,) and therefore not within the statute. As this general lien of the attorney upon the notes and demands in suit depended wholly upon possession, and was a mere right of retention, incapable of any active proceedings to enforce payment, it; could not be transferred, nor attach to the judgments obtained upon them or to any proceeds thereof, unless such proceeds came into the attorney’s possession, which is not the fact in this case.

The second kind of lien which an attorney has is that existing upon á -judgment recovered by him, or moneys payable thereon, or [239]*239upon some fund in court. This lien, so far as it extends, is not merely a passive lien, but entitles the attorney to take active steps to secure payment. It did not exist at common law. It is stated by Lord Mansfield to be not very ancient. 1 Doug. 104; Stokes, 3. It does not depend upon possession, but upon the favor of the court in protecting attorneys, as its own officers, by taking care, ex aqua et, bono, that a “party should not run away with the fruits of the cause without satisfying the legal demands of the attorney by whose industry and expense those fruits were obtained.” Read v. Dupper, 6 T. R. 361. As this equitable right rests solely upon the compensation due to the attorney for his services, and money expended in procuring the judgment or the fund secured, it is manifest that it cannot upon principle bo extended beyond the services and expenses in the suit itself, or in any other proceedings by which the judgment or fund has been recovered, or in the same subject-matter.

The distinction between an attorney’s “retaining lien” upon papers in his possession, and his “charging lien” upon a judgment or other-fund, is carefully pointed out by the lord chancellor in Bozon v. Bolland, 4 Myl. & C. 354, 359. “The solicitor’s claim upon the fund,” he says, “has been called transferring the lien from the document to the fund recovered by its production. But there is no transfer; for the lien upon the deed remains as before, though perhaps of no value; and, whereas, the lien upon the deed could never have been actively enforced, the lien upon the fund, if established, would give a title to payment out of it. The active lien upon the fund, if it exists at all, is newly created, and the passive lien upon the deed continues as before. If the doctrine contended for were to prevail, the lien of the solicitor upon the fund realized would in most cases extend to his general professional demand, and not he confined, as it always is, to the costs in the cause; for it must very generally happen that the plaintiff’s solicitor has in his hands the documents necessary to establish his client’s title to the money.”

In Lann v. Church, 4 Madd. 207, the vice-chancellor said that he “had not been able to find any case in which it had been held that a solicitor had any lien on the fund recovered in the canse, except for his costs incurred in such cause. ”

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Bluebook (online)
12 F. 235, 2 N.Y. Civ. Proc. R. 343, 1882 U.S. Dist. LEXIS 105, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-wilson-nysd-1882.