Kentucky & West Virginia Power Co. v. Howes

56 S.W.2d 539, 246 Ky. 843, 1932 Ky. LEXIS 829
CourtCourt of Appeals of Kentucky (pre-1976)
DecidedNovember 29, 1932
StatusPublished
Cited by1 cases

This text of 56 S.W.2d 539 (Kentucky & West Virginia Power Co. v. Howes) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky (pre-1976) primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kentucky & West Virginia Power Co. v. Howes, 56 S.W.2d 539, 246 Ky. 843, 1932 Ky. LEXIS 829 (Ky. 1932).

Opinion

Opinion of the Court by

Stanley, Commissioner

Affirming in part and Reversing in part.

Under our view of this case, it becomes necessary to consider only the question whether a layman was a. competent witness to express an opinion on the value of an attorney’s services.

The suit is by the appellee, Honorable Fred Howes,, to recover $9,500 compensation for professional services rendered the appellant. It was filed as. a common-law action, and upon the issues joined a jury returned a. verdict in his favor for $1,500. His motion for a new trial was sustained and the verdict set aside. Later his motion to transfer the ease to the equity docket was. sustained. The regular judge felt himself disqualified for some reason and a special judge was designated to try the case. He set aside the order transferring the-case and put it back on the ordinary docket. It was. *844 not then tried, and later another special judge was designated. He transferred the case to equity and referred it to the master commissioner to take proof and report. The commissioner reported a fee of $5,000 as being reasonable. On exceptions the court rendered a judgment for $3,250 for the plaintiff. There is a direct and cross appeal from that judgment.

The facts are practically without dispute. In October, 1926, the appellant had purchased the properties and franchises of the Prestonsburg Electric Light Company and of the Paintsville Water & Light Company. Mr. Howes had rendered legal services to the company in that year for which he was paid. The suit covers services in 1927. In general, they consisted of procuring new franchise in Paintsville for furnishing electricity and water both to the municipality and the citizens; the defeat of an effort to dissolve the charter of West Yan Lear, a village adjacent to or near Paints-ville, which might have seriously affected the company’s interests; the adjustment of some matters of taxation with the taxing authorities and the predecessor companies; also services in relation to a franchise in the .adjoining village or territory of Bridgeford, Johnson county. There is no denial that in each matter the •company’s interests were well and successfully represented. The only issue was as to what was a reasonable compensation.

Laying out of our view the questions as to whether the court should have tried the case as in equity under the provisions of subsection 4 of section 10, Civil Code •of Practice, and as to the reasonableness of the fee of $3,250 adjudged, we turn to the jury trial.

There can be no doubt about the propriety of submitting the case to a jury, for it was brought as an action at law and involved a legal issue. No attempt was made to have the case tried by the judge alone until after the verdict had been set aside. The company preserved its right to a review of the action of the trial court in setting aside the verdict by reserving proper exceptions and by moving to have that verdict substituted as and for the judgment of the court at the final determination. That motion was overruled and a bill of exceptions covering the jury trial has been properly presented on this appeal. It seems that the only ground upon which the court sustained the motion for *845 a new trial was the admission of the testimony of N. C. Punk, general manager for the appellant in the Eastern section of Kentucky, as to the value of the attorney’s services.

Mr. Punk gave his experience as a construction and electrical engineer and as manager of utility plants, and testified as to the value of the company’s properties in connection with which the attorney had rendered the services and of which the witness had been general manager during 1927. He further testified that he had had at least fifteen years’ experience in employing and dealing with able lawyers of good standing, who had rendered services like those of Mr. Howes, by engaging and paying them therefor. The localities were similar. He particularly mentioned several reputable, lawyers in Ashland, Catlettsburg, Hazard, and Whitesburg, whose fees he had approved for payment. Based upon that experience and qualification, the witness was permitted to testify that in his judgment Mr. Howes’s services were worth from $285 to $400. Objections to all of this testimony were overruled, as was also an objection to evidence on redirect examination as to what his company had paid another attorney in Ashland for similar services.

It is laid down in the text-books as an abstract proposition that a layman is not a competent witness to testify as to the value of a lawyer’s professional services and that such opinions may be given only by members of the profession. Wigmore, sec. 715; Chamberlayne on Evidence, sec. 2163; Jones, Commentary on Evidence, sec. 1366; 7 C. J. 763; 22 C. J. 700; Thornton on Attorneys at Law, sec. 547. But, as it is stated, it has also been held that any one familiar with the customary and usual charges of lawyers for services similar to those for which compensation is sought, and in the locality where rendered, may be qualified by reason of their experience and knowledge to express an •opinion of value, even though they be not members of the profession. An examination of the cases cited in support of the broad statements of inadmissibility discloses that in some of them the witnesses were lacking in qualifications necessary to enable them to have knowledge of the subject, and) it seems to us that those decisions might well have been rested on that basis .alone.

*846 The.first ease in this country that we have noted, and one which became the foundation of all subsequent opinions, is Hart v. Vidal, 6 Cal. 56, decided in 1856. It simply states, without discussion and without citation of authority, that a witness who was a layman was not competent because “he was not a lawyer, and therefore not such an expert as the rules of evidence admit.” Other cases directly so holding and citing the California case are Kappler v. Storn, 54 Okla. 493, 153 P. 1142; Howell v. Smith, 108 Mich. 350, 66 N. W. 218; Coco-Cola v. Moore (C. C. A.) 256 F. 640; Semble: Baxter v. Szucs, 248 Mich. 672, 227 N. W. 666. In Pry v. Estes, 52 Mo. App. 1, the testimony of two witnesses as to the value of an attorney’s services was held improperly admitted, because “it was not shown that they were attorneys-at-law, or in any way qualified to speak on the subject.” There are other cases cited in some of the texts, but they do not seem to be sufficiently in point to regard as authoritative.

We turn to those which support the proposition that a layman properly qualified is competent to express an opinion as to the value of a lawyer’s services.

In Hand v. Church, 39 Hun (N. Y.) 303, the defendant in an action to recover an attorney’s fee was permitted to express an opinion as to the fair value of the services. He had once been admitted to the bar but did not regard himself as a practicing lawyer. Por thirty years, for himself and as agent of others, he had been engaged in upward of two thousand cases of the character in which the attorney had been employed. He had acquired knowledge of fees paid counsel and had “a pretty good knowledge of the subject.” Said the court:

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Bluebook (online)
56 S.W.2d 539, 246 Ky. 843, 1932 Ky. LEXIS 829, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kentucky-west-virginia-power-co-v-howes-kyctapphigh-1932.