Keating v. Fuller

105 S.E. 844, 151 Ga. 66, 1921 Ga. LEXIS 152
Supreme Court of Georgia·Decided February 15, 1921·No. No. 1920·Published·Cited by 14 cases

Opinion

George, J.

By the will of A. W. Mitchell certain real estate was devised to a trustee for the benefit of Charles B. Mitchell, testator’s son, during his life, and, in the event of his dying childless, remainders were created in favor of certain other children and representatives of the children of the testator. After the death of Charles B. Mitchell, the Bridge children, the representatives of a child of the testator, and claiming as remaindermen, filed through their attorney, W. A. Fuller, Esq., a petition in equity for partition of the property devised by the will of A. W. Mitchell. The children of other deceased children of the testator, who were entitled to take under the will as remaindermen, and the trustee, who had practically abandoned the trust prior to the death of Charles B. Mitchell, were made parties defendant. The plaintiffs prayed for the appointment of a receiver; and a temporary receiver was appointed. A controversy arose between the Boach children and Mrs. Bena McDowell Boach, an intervenor. This controversy was determined by this court in Speer v. Roach, 145 Ga. 852 (90 S. E. 57). A controversy arose between the Boach children and their cotenants, respecting the share or interest in the property devised by the will; and this controversy was determined by this court in Speer v. Middleton, 147 Ga. 102 (92 S. E. 870). A controversy arose between the plaintiffs and the defendants, as to whether the receivership should be made permanent; and this controversy was determined adversely to the contentions of the defendants, in Speer v. Middleton, supra. At the suit of the plaintiffs, through ~W. A. Fuller, their attorney, the receivership was extended to Charles B. Mitchell’s personal estate, [68] ■which, consisted óf a debt dne him by a third person. The debt was collected by the receiver, and the money was distributed by consent of the parties. The receivership extended over a period of five years. Approximately the sum of $64,395 was collected and disbursed by the receiver under orders of the court. W. A. Fuller, counsel for plaintiffs, represented the receiver throughout the five years. Upon application, the court allowed Mr. Fuller a fee of one thousand dollars on account of his services as counsel for the receiver, and a fee of one thousand dollars on account of his services as counsel for the plaintiffs. To this judgment the defendants (except the trustee) excepted.

I. It is insisted that counsel for the receiver was not entitled to any compensation for his services. It appears that the court did not authorize the receiver to employ counsel. Nevertheless,, in the order allowing fees, the judge recites that “the receivership has covered a period of approximately five years. During all this-time W. A. Fuller prepared and presented, as attorney for the receiver, numerous applications for administrative orders, upon which applications the attorneys for objectors acknowledged service, said applications being presented by W. A. Fuller as attorney for the receiver; and no question, so far. as the court is informed, has ever been made as to his representing the receiver, until this application for fees was presented. Said Fuller also filed various reports for the receiver, as his attorney, and prepared and filed a petition for distribution, and it seems did any and everything required of an attorney in faithfully and efficiently representing the receiver in the discharge of the duties of his trust.” It is true that a receiver has not the authority to employ counsel without leave or sanction of the court which appointed him. Anderson v. Fidelity & Deposit Co., 100 Ga. 739, 742 (28 S. E. 463). Nevertheless, where a receiver is charged with duties and the performance of a particular trust requiring the benefit of counsel to guide and assist him, he is entitled to the benefit of such assistance; and although there is no specific order, in the first instance, authorizing the receiver to employ counsel, counsel fees are within the just allowances that may be made by the court. 34 Cyc. 290. Where the receiver employs counsel without having first obtained authority from the court appointing him, the court will determine both the necessity for counsel and the compensation to be allowed. As [69] a general rule, equity does not sanction tbe employment by a receiver of tbe attorney of any party in tbe suit; but this rule' is subject to exception and limitation. The rule is intended only for the protection of the rights of the parties themselves. It can not be invoked by a stranger. Hence, where the appointment is made in good faith, with the consent of the parties in the cause, the court may sanction the appointment, though made without previous authority, and may allow reasonable fees for the services rendered by the counsel. Where the receiver is not acting adversely to one or more of the parties to the litigation, and where the counsel of one of the parties has been employed by the receiver, not adversely to either of the parties, but to advance the common interest of all, such employment does not fall within the principle of the rule. See High on Eeceivers, §§ 217, 806. The fee of the receiver’s attorney is a part of the receiver’s expenses in administering the trust. See Central Trust Co. v. Thurman, 94 Ga. 735, 747 (20 S. E. 141). Under the facts of this case the court had the power, and it was his duty, to allow counsel for the receiver compensation for his services; and we can not say that the court abused his discretion in allowing a fee of one thousand dollars to such counsel.

Free access — add to your briefcase to read the full text and ask questions with AI

Keating v. Fuller, 105 S.E. 844, 151 Ga. 66, 1921 Ga. LEXIS 152 (Ga. 1921).

105 S.E. 844 (Keating v. Fuller) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Bodrey v. Bodrey
171 S.E.2d 614 (Supreme Court of Georgia, 1969)
Taylor v. Sharpe
144 S.E.2d 390 (Supreme Court of Georgia, 1965)
Cashin v. Markwalter
67 S.E.2d 226 (Supreme Court of Georgia, 1951)
Georgia Veneer & Package Co. v. Florida National Bank
32 S.E.2d 465 (Supreme Court of Georgia, 1944)
Nixon v. Nixon
29 S.E.2d 613 (Supreme Court of Georgia, 1944)
Werner v. Werner
25 S.E.2d 676 (Supreme Court of Georgia, 1943)
Mendenhall v. Stovall
24 S.E.2d 795 (Supreme Court of Georgia, 1943)
City of Atlanta v. Screws
21 S.E.2d 424 (Supreme Court of Georgia, 1942)
Cates v. Duncan
183 S.E. 797 (Supreme Court of Georgia, 1936)
Buttrill v. Buttrill
177 S.E. 576 (Supreme Court of Georgia, 1934)
Greyling Realty Corp. v. Lawson
175 S.E. 453 (Supreme Court of Georgia, 1934)
Herndon v. Sheats
167 S.E. 506 (Supreme Court of Georgia, 1933)
May v. Chero-Cola Co.
148 S.E. 87 (Supreme Court of Georgia, 1929)
Turner v. Shupin
144 S.E. 274 (Supreme Court of Georgia, 1928)