John Traff Building Construction Co. v. Keehn

41 N.E.2d 999, 314 Ill. App. 419, 1942 Ill. App. LEXIS 1033
CourtAppellate Court of Illinois
DecidedMay 14, 1942
DocketGen. No. 41,161
StatusPublished
Cited by1 cases

This text of 41 N.E.2d 999 (John Traff Building Construction Co. v. Keehn) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John Traff Building Construction Co. v. Keehn, 41 N.E.2d 999, 314 Ill. App. 419, 1942 Ill. App. LEXIS 1033 (Ill. Ct. App. 1942).

Opinion

Mr. Presiding Justice Scanlan

delivered the opinion of the court.

The complaint prays to have cancelled and annulled a notice of attorney’s lien served by defendant Keehn upon the Board of Education of the City of Chicago against a fund representing the unpaid balance of $47,851.91 due plaintiff from the Board upon the contract price for the doing of the mason and concrete work in the erection of the Verdi High School and that the entire balance be awarded to plaintiff. Defendant Keehn’s amended answer and counterclaim prays: “ (1) That the court enter a decree herein finding the amount to which this defendant is entitled out of the funds now in the hands of the Board of Education owing to the plaintiff . . . . (2) That as a part of such decree, the Board ... be required and directed to pay to this defendant the amount which this court finds this defendant is entitled to, out of the balance of moneys remaining in its hands due to plaintiff . . . .” The cause was heard by the court and a decree was entered denying the prayer of the complaint and awarding Keehn an attorney’s lien upon the fund for the full amount of his claim, $15,976.05, and ordering the Board of Education to pay that amount to him out of the unpaid balance due plaintiff. The Board of Education, hereinafter called the Board, is a mere stakeholder and has not filed a brief in this court. Defendant Keehn will hereafter be referred to as defendant.

Plaintiff states that certain parts of the pleadings are important as in the nature of admissions by defendant because the trial court, over plaintiff’s objections, permitted defendant to twice amend his sworn answer without any showing of mistake, inadvertence, or other excuse. The first of the amendments whs filed during the trial, and the second, after the court had decided the case and directed defendant to prepare a decree.

John Traff Building Construction Company, a corporation, plaintiff, is the assignee of John Traff, a contractor who had been engaged in the construction business in Chicago for many years. On February 25, 1931, Traff entered into a written contract with the Board to do the masonry and concrete work in the construction of the Verdi Junior High, School, for $410,600, payable in installments aggregating eighty-five per cent of the contract price during the progress of the work. By the summer of 1931 Traff had built the foundation, the first floor, and the frame work for the second floor of the school. Then the Board, faced with an empty treasury, ordered Traff, as well as all of the contractors who were engaged in work upon eleven schools then under construction, to cease work, and no work was thereafter done upon the Verdi school until the latter part of 1937. Over one hundred contractors were engaged in the construction of the eleven schools. Defendant is a lawyer, and in June or July, 1932, George Getshaw (now deceased) and Bay Berry called upon him and stated the situation of the contractors. Defendant knew them prior to that time. Defendant testified that upon his recommendation the contractors authorized him to make a demand upon the Board that the work be continued and to notify the Board that the contractors would report for work on the buildings on the following Tuesday; that “my point was to try to create a-breach by the Board of Education, which I could construe as a legal breach of a contract”; that he went before the Board and demanded that the contractors be allowed to proceed with the work and that the Board pay them for the work; that the Board asked for delay so that an agreement might be reached as to how the work should proceed, and “it was suggested there might be three methods, one, an outright cancellation of the contract; second, an extension of the contract, and, third, a completion of the buildings”; that the Board refused to consider the third, “because they couldn’t pay”; that the Board finally concluded that there would be no advantage to it in considering the cancellation method. Defendant recommended to Getshaw and Berry that an organization be formed among the contractors for the purpose of having unified action on their part, and an association, composed of practically all of the contractors, was formed to protect their interests. Getshaw became chairman of the association, and Berry, treasurer. Meetings of the contractors were held during the summer months of 1932. In July or August, 1932, a resolution was passed authorizing Getshaw and Berry to call upon defendant, which they did. Defendant told them he would agree to act in a preliminary way without charge until he could familiarize himself with the situation and determine what could be done, but with the understanding that if he accepted the employment it would be upon the basis of a retainer and a percentage arrangement. Defendant stated to Getshaw and Berry the terms upon which he would undertake to represent the contractors, and at a meeting of the contractors on July 29, 1932, Getshaw stated defendant’s terms. On August 12, 1932, Getshaw and Berry sent to each contractor a letter that stated defendant’s offer. The essential paragraphs of the letter are:

“. . . we secured from him [Keehn] an informal proposition to handle the work on the following basis: each contractor who is connected with this group is to pay him a retainer fee of $100.00 which is to cover the contractor’s only obligation to Mr. Keehn with the following exceptions.
“If the contractor wishes the attorney to collect damages on a contract if it is canceled and anticipated profit on a contract not installed, the attorney wants 15 % of the amount of damages collected and 5% of the amount of profit collected. The damages are not to be construed as labor and materials manufactured or installed. In the event of extension of contract, and contractor wishes to secure damages for delays, etc., the "attorney wants 15% of the amount collected.” Late in August Getshaw and Berry asked defendant for a written confirmation of the terms of employment which he had authorized them to present to the association, and on September 1, 1932, defendant sent to Berry the following letter:
“Replying to your inquiry regarding the arrangement concerning retainers in the matter of the contracts with the Board of Education, the understanding is that each contractor is to pay a $100 fee as a retainer. This applies to all but a few contractors having very small contracts, who are to pay a less amount. This feature covers the retainer, and the additional fees to be paid later, as agreed upon with the contractors, is as follows:
“1. Cancellation of contract — 15% of the amount of damages collected and 5% of the amount of profits collected. In this case damages are not to be construed as labor materials manufactured and installed.
“2. Extension of the contract — the fee will be 15% of the amount allowed for the extension of the contract, over and above the contract price itself.”

On August 23,1932, Traff employed defendant under the above agreement by paying him the retainer fee, $100. Prior to that date defendant and Traff were strangers. In 1933, through the efforts of defendant, all of the contracts were extended for a period of one year and damages were awarded to the contractors in consideration of the extension. Traff was awarded $20,104 damages, which were paid.

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Cite This Page — Counsel Stack

Bluebook (online)
41 N.E.2d 999, 314 Ill. App. 419, 1942 Ill. App. LEXIS 1033, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-traff-building-construction-co-v-keehn-illappct-1942.