Irwin v. Swinney

45 F.2d 890, 1930 U.S. Dist. LEXIS 1563
District Court, W.D. Missouri·Decided December 20, 1930·No. 1284·Published·Cited by 6 cases

Opinion

OTIS, District Judge.

In this case 1 applications for allowances in compensation for legal services rendered have been made by the firm of Ryland, Stinson, Mag & Thomson, who appeared for the executors and trustees, by Messrs. Wrig-ht, Welch, Woodbury, and Meyer, who appeared as attorneys for the Attorney General, by the firm of McCune, Caldwell & Downing, who appeared as attorneys for the Women’s Christian Association, one of the intervening defendants, and by Mr. James II. Harkless, who appeared as attorney for the George H. Nettleton Home for Aged Women, another of the intervening defendants. What allowances, if any, should be made to these attorneys is now for decision, and is the subject-matter of this memorandum and order. A discussion of the matter may well be prefaced by a preliminary statement.

An application for an allowance having been made by the attorneys representing the Attorney General, and anticipating that other applications would be made, I directed by order that all attorneys who intended to ask for allowances should present such applications on the 3d day of December, 1930, so that they might be heard together. It was my view that the value of legal services rendered to the trust established by the Loose will should be determined as one matter and that then the amount representing the total value of such services should he apportioned among the attorneys entitled to compensation in proportion to the reasonable value of the services of each. It was my view also that the hearing as to the value of the services rendered should not he of an ex parte character at which the only testimony offered was that of attorneys called by the applicants for allowances. It seemed to me that, where the allowances asked might well he expected to be large, they should be based upon carefully considered and, if possible, unsolicited testimony. To- insure a hearing of such a character, I proposed to the trustees and also to the Attorney General that they employ counsel other than the attorneys personally interested in allowances who would cause to be called disinterested attorneys to give testimony, and who would cross-examine other attorneys called by the interested parties. Out of all the testimony thus resulting, I hoped to have a satisfactory evidentiary basis for allowances.

Before the date set for the hearing, the trustees and the attorneys for the trustees (and they spoke also, they assured me, for the attorneys who represented the Attorney General) proposed, in lieu of the plan I had suggested, that I appoint three or more members of the Kansas City bar and empower them to carefully investigate the work done and services rendered by attorneys in this case, and, upon the basis of their investigation, give me their expert opinions as td what would be reasonable allowances. The trustees and others who made this proposal did so because it was their view that the cause of charitable trusts generally would be injured if a.t a public hearing witnesses would testify in support of what might generally be regarded as exorbitant allowances, even though only reasonable allowances finally were made. I thought this proposal was meritorious, and I the more readily adopted it since it clearly appeared that all of the attorneys asking allowances, or at least those principally interested in the matter of allowances, favored this plan, and I may add *892 that none of the attorneys who have made applications for allowances has at any time expressed any disapproval of the plan adopted or suggested that the method usually employed and the one I first contemplated was not inferior to the one proposed to me by the trustees and others. .

Adopting the proposal made to me by the trustees and the attorneys mentioned, I selected three outstanding members of the bar of this court, Messrs. Cyrus Crane, Henry M. Beardsley, and Albert I. Beach. In selecting them I had in mind a type of lawyer. I wanted not only outstanding members of the bar who had been successful in the practice of their profession and who were generally recognized as successful praetioners, but who also, by reason of their character and public services, commanded the respect and admiration of all lawyers and all citizens. Two of the men I selected had been presidents of the Kansas City Bar Association. Two of them had been mayors of Kansas City. Each of the three was known by every one to be animated in all matters by a high sense of justice and public duty. By court order I authorized them to take testimony under oath as to the services which had been rendered by attorneys, and to report to me what in their judgment were the proper principles to be applied in the fixing of allowances, and to report to me also what in their judgment were proper allowances to be made in this case. Thereupon they made a most careful investigation, taking testimony for more than two days, and then diligently reviewing that testimony and the law applicable thereto, and finally agreeing upon a recommendation as to what was a proper total allowance and as to who were entitled to participate therein. The understanding of all was that a transcript of the testimony taken by these gentlemen should be received as t-be testimony in this matter and that their expert opinions as to what were reasonable allowances should be the only expert opinions received. At a hearing on the 6th day of December, 1936, the transcript was introduced, the report was received, an opportunity was given for such other testimony as the parties might desire to offer. None other was offered, and none other was received.

It was the view of the committee of lawyers appointed by me that the attorneys representing the Attorney General as such were entitled to no compensation out of the trust fund, and that the attorneys for the intervening defendants also were entitled to no compensation from the trust fund. It was their view, however, that the attorneys representing the Attorney General were, in a true sense, really retained by the trustees as associate counsel with the firm of Hyland, Stinson, Mag & Thomson, which principally represented the trustees, and that in that capacity they were entitled to compensation. In the estimation of the committee, and such was their expert testimony, the total amount that should be allowed for legal services rendered to the trust was $40,000.

The amount recommended is very much less than the amount to which the interested’ attorneys feel they are entitled. It was stated in evidence by them at the hearing before the committee that the minimum which in-their view the attorneys for the trustees and the attorneys for the Attorney General should receive was $100,000. Their view was that the amount allowed certainly should not be less than $100,000, and that $150,000 would be quite fair and reasonable. The Attorney General of the state, whose duty it was and is to protect and conserve this and similar charitable trusts, testified through one of his assistants that in his judgment a fee of not more than $100,000 was reasonable.

It is my duty to determine what the allowances should be. It is scarcely necessary to say that no duty which a judge is called upon to perform is more distressing. I should be glad indeed if I might honorably avoid fixing allowances for attorneys in this and in all other matters.

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Irwin v. Swinney, 45 F.2d 890, 1930 U.S. Dist. LEXIS 1563 (W.D. Mo. 1930).

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