Jacobs v. Niagara Cab Co.

169 Misc. 893, 9 N.Y.S.2d 206, 1938 N.Y. Misc. LEXIS 2278
CourtNew York Supreme Court
DecidedNovember 9, 1938
StatusPublished
Cited by4 cases

This text of 169 Misc. 893 (Jacobs v. Niagara Cab Co.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jacobs v. Niagara Cab Co., 169 Misc. 893, 9 N.Y.S.2d 206, 1938 N.Y. Misc. LEXIS 2278 (N.Y. Super. Ct. 1938).

Opinion

Rosenman, J.

This is a motion, under section 475 of the Judiciary Law, brought by the attorney for the plaintiff in a personal injury action, to have his lien for services rendered in that action fixed by the court. The action was settled prior to trial by the parties thereto without the knowledge or consent of the moving attorney. The affidavits disclose that the plaintiff is not financially responsible and has apparently left the jurisdiction. The attorney’s retainer was for a contingent fee of fifty per cent of any recovery by way of suit or settlement. The undisputed amount of the settlement was $300. The attorney, therefore, asks that his fee be fixed at $150, to be paid by the defendant.

The only objection advanced by the defendant is as to the procedure adopted by the moving party in bringing this motion in the original action. The claim of the defendant is that undei section 475 of the Judiciary Law an attorney may proceed by petition or motion in the original action only when the attorney [894]*894seeks to fix Ms lien as against Ms own client; but that where he seeks to foist liability upon the defendant for Ms fee, he must commence a separate action in equity against his chent and ask for an alternative judgment against the defendant upon a showing of Ms chent’s insolvency.

Section 475 of the Judiciary Law, so far as is pertinent to the facts in tMs case, provides: “ From the commencement of an action * * * in any court * * * the attorney who appears for a party has a hen upon his chent’s cause of action * * * which attaches to a verdict, report, determination, decision, judgment or final order in his chent’s favor, and the proceeds thereof in whatever hands they may come; and the hen cannot be affected by any settlement between the parties before or after judgment, final order or determination. The court upon the petition of the chent or attorney may determine and enforce the hen.”

There has not been complete unanimity among the courts as to the procedure to be employed by an attorney who seeks to have his hen fixed against the other party to the action who has settled with Ms chent without Ms knowledge or consent.

One of the earher cases was that of Peri v. New York Central R. R. Co. (152 N. Y. 521 [1897]). That case was an appeal from an order of the Appellate Division which had affirmed an order of Special Term vacating a satisfaction of judgment obtained by the moving attorney’s chent from a defendant who settled the judgment and action without his attorney’s knowledge. The order appealed from directed the sheriff to enforce the judgment to the extent of the lien. The Court of Appeals was first called upon to determine the preliminary objection that the proceeding was “ a motion in the action, and that the order entered herein was not appealable to tMs court.” The court said, however: “ We are of the opinion that tMs is a special proceeding and cannot be regarded in any proper sense as a motion in the action. * * * We have here a proceeding by third parties against the defendant upon other issues than those framed in the action and relating to a hen arising out of a state of facts wholly distinct from those passed upon at the trial. TMs proceeding, which is invoked by the plaintiff’s attorney, is in place of an action to set aside the satisfaction of the judgment. * * * It would be an anomaly to hold that a proceeding of tMs nature is a motion in the action. The motion to dismiss the appeal is denied ” (p. 526).

As to the merits, the court said: “ The hen operates as security, and if the settlement entered into by the parties is in disregard of it and to the prejudice of plaintiff’s attorney, by reason of the insolvency of Ms chent, or for other sufficient cause, the court will [895]*895interfere and protect its officer by vacating the satisfaction of judgment and permitting execution to issue for the enforcement of the judgment to the extent of the lien, or by following the proceeds in the hands of third parties, who received them before or after judgment impressed with the lien ” (pp. 527, 528). The order was accordingly affirmed.

Thereafter, a different procedure was apparently adopted by the courts to aid an attorney in recovering his fees under circumstances similar to the case at bar. In Pilkington v. Brooklyn Heights R. R. Co. (49 App. Div. 22 [1900]), for example, the plaintiff’s attorney in the negligence action brought against the defendant had a retainer of one-third of the amount received on settlement. The parties to the action did settle the matter between themselves for $2,600, the defendant agreeing to adjust any claim * * * for any lien upon the cause of action, which the said attorneys may be able lawfully to establish.” When the plaintiff’s attorney’s demand for payment of the amount of his lien was ignored by the defendant, a motion was brought on to determine and establish the amount of the lien and to direct defendant to pay one-third of the sum of $2,600.

The court awarded one-half of the amount of the settlement and ordered the defendant to pay it. Upon appeal, the defendant argued “ that there is no power in the court to enforce performance of the agreement by summary order,” a contention with which the court agreed. Citing the early case of Harris v. Elliot (19 App. Div. 60) the court decided that the remedy was to continue the original suit or to sue the defendant independently on the stipulation. The conclusion of the court was that “ The order should be modified by reducing the amount of the attorney’s lien from $1,300 to $866.66, and by providing that unless that sum and the $10 costs of the motion are paid by the defendant within twenty days, the plaintiff’s attorneys have leave to continue the action [apparently the original negligence action] for the enforcement and collection of their lien” (p. 28).

Then followed the case of Rochfort v. Metropolitan Street R. Co. (50 App. Div. 261 [1900]). In that case the proceeding was initiated by service on defendant of a petition and notice of motion.” There, as here, the case was a negligence action which was settled by defendant’s paying plaintiff $260 without the knowledge of the attorney for the plaintiff who had a fifty per cent retainer. The defendant objected to the payment of any amount on such summary application.” Special Term awarded the attorney $130. On appeal the court said that the question was “ one of practice, whether as against a defendant who settles with a plaintiff without [896]*896the knowledge of his attorney, the latter can in a summary way, by petition, have the amount of his lien determined, or whether he must proceed to enforce it in or by an action ” (p. 263).

The court proceeded to discuss the Pilkington case (supra) and the effect of section 66 of the Code of Civil Procedure (the forerunner to section 475 of the Judiciary Law). The court’s conclusion was that that section “ does not relate to a defendant, but merely aims at formulating a practice which, as between plaintiff and his attorney, will enable the latter’s lien to be determined or enforced by petition and order, instead of by action ” (p. 266). The determination was that the defendant was directed to “ pay the $130 within twenty days, or in default thereof leave should be given the attorney to prosecute the action [apparently the original negligence action] to enforce his lien.”

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Bluebook (online)
169 Misc. 893, 9 N.Y.S.2d 206, 1938 N.Y. Misc. LEXIS 2278, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jacobs-v-niagara-cab-co-nysupct-1938.