Kickland v. Egan

155 N.W. 192, 36 S.D. 428, 1915 S.D. LEXIS 181
CourtSouth Dakota Supreme Court
DecidedDecember 18, 1915
DocketFile No. 3778
StatusPublished
Cited by4 cases

This text of 155 N.W. 192 (Kickland v. Egan) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kickland v. Egan, 155 N.W. 192, 36 S.D. 428, 1915 S.D. LEXIS 181 (S.D. 1915).

Opinion

GATES, J.

Plaintiff sought by this action to recover from defendant Egan the residuary assets -of the -estate of one Lafayette Ki-ckland, which were on deposit -in defendant bank amounting to $7,325.21, subject -to the repayment of the sum of $3,000 to the defendant Egan, -if the court should so find. Hereinafter the [431]*431word “defendant” refers to defendant Egan, unless otherwise mentioned. Recovery was sought on two grounds: (a) The invalidity of a contract whereby plaintiff assigned to defendant one-third of plaintiff’s interest in said estate as a consideration for defendant’s attorney’s fees and expenses in the matter of the settlement of esaid estate; (b) the invalidity of a contract and deed for the real consideration of $3,000 and defendant’s rights under the ■above contract, and the stated consideration of $6,000, whereby plaintiff’s interest in said estate was assigned and conveyed to defendant.

This being an ecjuity cause, the trial was had to the court, but a jury was called in an advisory capacity. At the conclusion of the trial, plaintiff moved the court fo find all the issues in favor of plaintiff, viz.:

“(1) To find that the contract of employment and power of attorney obtained by the defendant Egan from the plaintiff on the 31st day of May, 1911, were procured by said defendant while the ■relation of attorney and client existed between him and plaintiff, by concealment of material information and facts then in the possession of and known h> said defendant, and by undue advantage and undue influence of the defendant Egan over the plaintiff as a result of the relationship that existed between the parties, and without 'having given to the plaintiff such independent advice as he was bound to give the plaintiff, in view of the relation that then existed between them; it appearing that, neither before the contract or power of attorney were made, or at the time thereof the plaintiff had independent advice from a lawyer or any other person competent to advise him with reference to said transaction.
“(2) To find that the deed and assignment of plaintiff’s interest in the estate of Lafayette Eiekland, deceased, made September x, 1911, were procured by the defendant Egan, while the relation of attorney and client existed between him and the plaintiff, and by the concealment of material information and facts then in possession of and known to said defendant, and by virtue of undue advantage and undue influence which the defendant Bgan then had over the plaintiff, and by virtue of the relationship of attorney and client which then existed, and without having given to the plaintiff that independent advice which he should [432]*432have given him in view of the relationship then, existing between the parties, and that the undisputed evidence shows that the plaintiff did ■ not have the independent advice,' or advice of any attorney at law or other person competent to. advise him with reference to said transaction at or prior to the execution of said instrument.
“(3) To. find and conclude as a matter of law that the contract of .employment, power of attorney, deed, and assignment were, for the reasons above stated, void, and that defendant Egan acquired no right, interest, or estate whatsoever in the property herein described by virtue of same.
“(4) To find the defendant the Sioux Falls Savings Bank should be required to pay over to the plaintiff the sum of $7,-325.21, that being the amount deposited ¡with said ¡defendant by the agreement of the parties to. this action to abide the result thereof; said amount being the proceeds of the plaintiff’s interest of the estate of Lafayette Kickland, deceased, less the sum of $3,000, which the defendant Egan paid to the plaintiff at the time the deed and assignment were made.
“(5) That toe court find the reasonable value of toe services rendered by the defendant Egan under and by virtue of his employment by the plaintiff, with reference to. the estate of Lafayette Kickland, deceased, and award him such amount as the court shall so. find to- be reasonable out of the- balance of said deposit.”

This motion was denied, and the court gave its instructions to the jury. The material portion of - such instructions was as follows:

“At the time of making the contracts involved in -this case, toe' relation of attorney and client existed between Mr. Egan and the plaintiff, Theodore Kickland. That is a relation involving confidence, and is what is called a 'confidential relation’ w-ithin toe meaning of the law. Because of this, and toe attorney’s presumed superior legal information and possible influence, the usual rule of the presumed validity of contracts is changed, and it devolves upon the attorney to show that his transaction with his client was fairly conducted, as if between strangers.
“To express the same view in a little different language, the law is that when the relation of .attorney and client -existe, a trans[433]*433action between them is presumptively fraudulent, and if the propriety of it comes in question, the ¡burden is upon the attorney to show that no undue influence was used, or advantage taken, and that he gave his client all of the information and ad'vice, as against himself, that was necessary to> enable him to act understandingly.
“'Still it is not the law that all purchases by an attorney of his client’s property, or transactions 'between them, are voidable at the wish or election of the client. There is no necessary incapacity for dealing between them, but, as stated, the burden rests upon the attorney whoi bargains with his client in a matter of advantage to himself to show that the transaction is. fair and equitable; that the client was fully informed of his rights and the nature and' effect of his contract, and was so. placed as to be able to deal with his attorney at arm’s length.”

As a part of such, instructions the court submitted six interrogatories, which, with the answers thereto' returned by the jury, are incorporated in the findings. As will be observed, the court rejected' one of the said answers and adopted the other five. The learned trial .court thereupon made the following findings of fact and conclusions of law:

“Findings of Fact.
“I. That the above-named defendant Egan is, and prior to and on the 31st day of May, A. D. 1911, was, an attorney and counselor at law, duly licensed to' practice his profession in all the courts of this state. That on said 31st day of May, A. D. 1911, he entered into an agreement in writing with plaintiff,, of which the following is a c-op3'r, to-wit [attached by reference]. That said agreement was the initiatory contract of employment with respect to the matter therein refer.ed to. That prior thereto in regard to said matter the relation of attorney and client did not exist, although in the month of January, A. D. 1911, plaintiff had disclosed to said defendant Egan many essential facts concerning the physical condition of said Eafayette Kickland; the making of the will; the threatened and probable belligerent attitude of other relatives or heirs concerning the will; and the probable amount of property that plaintiff would receive by the terms of said will upon the .death of said Eafayette Kickland' — .which information [434]*434formed, to a considerable extent, the basis upon.which the -agreement in this finding was based.

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Related

First National Bank of Beresford v. Anderson
291 N.W.2d 444 (South Dakota Supreme Court, 1980)
Ofstad v. Beck
274 N.W. 498 (South Dakota Supreme Court, 1937)
In re Egan
157 N.W. 310 (South Dakota Supreme Court, 1916)

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Bluebook (online)
155 N.W. 192, 36 S.D. 428, 1915 S.D. LEXIS 181, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kickland-v-egan-sd-1915.