Interstate Motor Freight System v. Gasoline Equipment Co.

24 N.E.2d 418, 107 Ind. App. 494, 1940 Ind. App. LEXIS 107
CourtIndiana Court of Appeals
DecidedJanuary 5, 1940
DocketNo. 16,185.
StatusPublished
Cited by4 cases

This text of 24 N.E.2d 418 (Interstate Motor Freight System v. Gasoline Equipment Co.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Interstate Motor Freight System v. Gasoline Equipment Co., 24 N.E.2d 418, 107 Ind. App. 494, 1940 Ind. App. LEXIS 107 (Ind. Ct. App. 1940).

Opinion

Stevenson, J.

This action was commenced by the appellee to recover upon a promissory note executed by the appellant as part payment for the purchase price and installation of a 15,000 gallon gasoline storage tank and equipment. The appellee’s amended complaint alleged the execution of the note and payment of four monthly installments thereon; that there was yet due the sum of $616.26 principal, and interest at the rate of six per cent per annum from June 21,1936, the date of default. The complaint also prayed an allowance of $300.00 for attorney’s fees.

To this complaint the appellants filed an answer in two paragraphs, the first being in general denial, and the second a plea of payment. There was also a paragraph of answer denominated a “set-off” and a counterclaim in two paragraphs. The answer denominated a “set-off” admitted the execution of the note sued upon but alleged that said note was given as part payment of the purchase price for a 15,000 gallon gasoline storage tank and the complete installation thereof on the premises of the appellant in the city of Toledo, Ohio. It further alleged that the appellee had failed *497 to install said tank in a proper manner and had negligently failed to anchor the same, as a result of which the tank, on or about the thirtieth day of March, 1936, became dislodged, and floated out of the ground. That the appellee failed and refused to-replace said tank and the appellant was required to and did spend $541.20 in replacing and repairing said storage tank. The counterclaim filed by the appellant claimed damages in the sum of $1,600.00 on account of the alleged failure tc? properly install and anchor said storage tank. To these paragraphs of “set-off” and counterclaim the appellee filed replies in general denial. On the issues thus formed the cause was submitted to the court for trial, and the court after hearing the evidence rendered judgment for the appellee on the note sued upon for $651.47, principal and interest, and $300.00 attorney’s fees.

A motion for new trial was filed, overruled, and this appeal has been perfected. The appellant assigns as error in this court the overruling of the appellant’s motion for new trial, and contends that the amount of recovery is too large, and that the judgment of the court is not sustained by sufficient evidence and is contrary to law.

The appellant first contends that there was no evidence offered as to the services rendered by the appellee’s attorney and in the absence of such proof there can be no allowance for attorney’s fees. The only evidence as to the value of the attorney’s fees which appears in the record is the testimony of H. Nathan Swaim, who testified that he was a practicing attorney in Indianapolis and familiar with the fees charged by attorneys generally in actions for the collection of notes. A hypothetical question was then asked Mr. Swaim in which there was detailed the various steps which the attorneys had followed in the preparation *498 of the pleadings and the trial of this case. The witness testified, basing his opinion upon the facts recited, that the value of such services was $350.00.

While it is true that the appellee did not offer evidence in support of all facts assumed in the hypothetical question, yet the question detailed many facts with reference to the pleadings and taking of depositions and the trial of the case about which the court could take judicial notice. The pleadings were prepared and filed by the attorneys for the appellee and were before the court. The note described in the question was in evidence. The attorneys were present in court trying the law suit. It is apparent that the hypothetical question was addressed to and described these particular services.

It has been repeatedly held in this state that where the amount of attorney’s fees is not fixed in the note, the amount thereof must be established by proper evidence. Starnes et al. v. Schofield et al. (1892), 5 Ind. App. 4, 31 N. E. 480; Shoup v. Snepp et al. (1899), 22 Ind. App. 30, 53 N. E. 189; Lindley v. Sullivan (1893), 133 Ind. 588, 32 N. E. 738, 33 N. E. 361. But where the note provides for the payment of attorney’s fees, however, it is not incumbent upon the plaintiff to prove the actual employment of counsel by him where the attorneys are actually present in court seeking to enforce the collection of such obligation. 11 C. J. S. §653. As was said by the Supreme Court, of Wyoming:

“The proof in this case shows that 10 per cent was a reasonable sum to be allowed, and this is the amount allowed herein by the court. We do not think it was necessary to introduce evidence showing the employment of counsel by respondent bank, or that a reasonable attorney fee was to be paid to them. Counsel for respondent are officers of the court and presumably appeared in court as *499 counsel representing their clients, and presumably their appearance' and the services rendered by them were with full authority to do so, either under an express or implied promise to receive reasonable compensation for such services. ’ Farmers State Bank v. Haun (1924), 30 Wyo. 322 222 Pac. 45, 51.

The same principle is announced by the Supreme Court of Texas in the following language:

“It is held in these cases, and it is reasonable, that, when a note is sued on and the pleadings signed by an attorney, it is presumable that he had been employed to bring the suit, and that he will receive at least as much compensation as is provided for in the note. In the absence of attack, the note proved itself, aiid the attorney’s fees were a part of the note.” Rychener et al. v. McGuire (1933), (Texas), 66 S. W. (2d) 413, 414.

We are accordingly of the opinion that the court in this case was not wholly without evidence upon which to base its finding for the'allowance for attorney’s fees on the note which formed the basis of the appellee’s complaint. See Pivot City Realty Co. v. State Savings, etc., Co. (1928), 88 Ind. App. 222, 162 N. E. 27.

The appellant further contends that the evidence discloses a breach of an implied warranty on the part of the appellee which entitled the appellant to recover on its “set-off”-and counterclaim. The appellant contends that under the terms of the contract by which the appellee undertook to furnish the gasoline storage tank and to install “complete” there was an implied warranty that the installation would be suitable for the uses intended and that the installation would be completed in a workmanlike manner. The appellant insists that under this rule of law the appellee was bound to anchor the tank in place by a method suffi *500 cient to prevent its dislodgment and that having failed so to do, the appellee must respond in damages for the loss occasioned when the tank floated out of the ground.

This contention requires us to interpret the meaning of that portion of the contract embodied in the telegram quoting the price, which telegram reads as follows: “Will install Toledo job complete including meter pump for truck service for $1,285.00.

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Bluebook (online)
24 N.E.2d 418, 107 Ind. App. 494, 1940 Ind. App. LEXIS 107, Counsel Stack Legal Research, https://law.counselstack.com/opinion/interstate-motor-freight-system-v-gasoline-equipment-co-indctapp-1940.