Kimball v. Casey

151 S.E. 372, 169 Ga. 631, 1929 Ga. LEXIS 423
CourtSupreme Court of Georgia
DecidedDecember 11, 1929
DocketNo. 7269
StatusPublished
Cited by5 cases

This text of 151 S.E. 372 (Kimball v. Casey) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kimball v. Casey, 151 S.E. 372, 169 Ga. 631, 1929 Ga. LEXIS 423 (Ga. 1929).

Opinion

Hines, J.

(After stating the foregoing facts.)

“An administrator is authorized to provide for the estate competent legal counsel, according to the exigencies of the estate he represents.” Civil Code (1910), § 4010. In exercising this power an administrator should use the same care as a prudent man would exercise in employing competent legal counsel in a matter in which he is personally concerned. Lawton v. Fish, 51 Ga. 647, 651. Contracts between attorneys and client, wherein it is stipu[637]*637lated that each of the attorneys is to receive a certain per cent, of the amount collected, for services rendered in collecting the claim, the same not being champertous, are valid and binding upon both client and attorneys. Moses v. Bagley, 55 Ga. 283; Twiggs v. Chambers, 56 Ga. 279, 282. Under the section of the code and the decisions cited, the administrator in this case was authorized to employ attorneys to collect the insurance upon the life of the intestate, and to stipulate that the attorneys should receive a'contingent fee of a certain per cent, of the recovery for their services, provided the administrator used the same care as a prudent man would exercise in employing such attorneys in such matter if the same had been one in which the administrator was personally concerned. Where the administrator had employed one attorney to collect such insurance and had stipulated that such attorney should receive a contingent fee consisting of 25 per cent, of the recovery, such employment would not preclude the administrator from after-wards employing another attorney to aid the attorney first employed in collecting such insurance, if the administrator in the employment of the second attorney exercised the same care as a prudent man would exercise in employing such additional attorney if he were employing him in such matter and if the same had been one personal to himself. The employment of the first attorney upon-a contingent fee did not preclude the administrator from employing the second attorney upon a like fee, if in the employment of the latter the administrator exercised the above degree of care. In such circumstances the estate represented by the administrator would be liable to the payment of the fees of both attorneys. Contracts by an administrator, employing counsel for the estate he represents, need not be sanctioned or approved by the ordinary before they become valid and binding, when made under the circumstances hereinbefore stated.

The controversy in this case, as made and urged by counsel for the parties therein, is made to depend solely upon the question whether a fraud was perpetrated upon the ordinary in procuring his order approving the settlement of the case brought by the administrator for the recovery of insurance on the life of the intestate, and in approving the payment of 50 per cent, of the recovery to the attorneys of the administrator for services rendered in procuring such settlement and collecting the full single in[638]*638demnity on the life of the intestate, together with interest .thereon. The guardians of .the minor children of the intestate in their intervention make the following allegations: The administrator employed attorney R. H. Kimball to recover the proceeds of the insurance policies on the life of the intestate, and for his- services agreed to pay him a maximum fee of - 25 per cent, of the- recovery, -which fee was earned. They attach as an exhibit to their intervention the written contract between the administrator and-said attorney, which shows that he was to receive the above compensation for services rendered in collecting said insurance. Kimball associated with him attorney John B. Gamble, said association having been made by Kimball without any liability for fees on the part of said administrator. The attorneys collected- on the- insurance $13,480.55; and paid-over to the administrator $6,740.22 of-.the amount collected. A petition by the administrator was filed -with the ordinary of Barrow County, in which the administrator alleged that it had contracted and agreed to pay said attorneys fifty per cent, of the amount recovered, for their fees for services rendered in recovering said sum; and an order was taken thereon authorizing the payment of said 50 per cent., which said attorneys received. -At •the time the petition on which said-order was granted was presented to the ordinary, neither the administrator nor said attorneys brought to his attention that a contract for fees in the amount of 25 per cent, had been entered into by the parties. The ordinary did not know of the existence of said contract at-the time said order was passed.- - ■

• The order- passed by the ordinary recites that the president of the administrator bank appeared before the -court in person - and confirmed ■ the statement of facts therein, and that he was well satisfied with the results obtained in the litigation. Thereupon the ordinary passed the order approving said settlement and the payment of 50 per cent, of the recovery to the attorneys for their services. In their intervention the intervenors do not deny any of the facts stated in the petition, or any of the facts recited in the order of the ordinary based thereon.

Do the facts alleged show that any fraud was perpetrated upon the ordinary to induce him to sign the order approving the settlement of the insurance case, and the payment of 50 per cent, of the recovery to the attorneys for the administrator ? The pleading of [639]*639the intervenors must be taken most strongly against them. In the absence of any traverse of the facts set out in the petition of the administrator, and of the facts recited in the order of the ordinary, these facts must be construed in connection with the facts alleged in the intervention. So construed, we do not think that they show that any fraud was perpetrated by the administrator or its attorneys in obtaining said order of settlement. On demurrer, the allegations of the intervention of the guardians, that the administrator employed Kimball to recover the amount of the insurance policies on the life of the intestate, that the administrator agreed to pay him a maximum fee of’ 25 per cent, of the amount recovered, which fee was earned by Kimball, and that Kimball associated with him attorney Gamble, without any liabilities for fees on the part o£ the administrator, must be taken to be true. The intervenors attached to their intervention and as a part thereof the petition to the ordinary for said order and the order itself. This petition alleges, among other things, that the administrator contracted and agreed to pay to these two attorneys 50 per cent, of the amount recovered as their fee for recovering the same; and in the order of the ordinary it was recited that the president of the administrator bank appeared in court and confirmed the foregoing statement of facts. In the absence of traverse or denial, these facts must he taken to be true. Taking the allegations of the intervention most strongly against the pleader, when fairly construed, they amount to a statement that the administrator .employed Kimball to recover this insurance upon a maximum contingent fee of 25 per cent, of the recovery, that Kimball associated Gamble with him in the prosecution-of the suit, without any agreement that the administrator was to pay Gamble any fee, and that afterwards the administrator contracted with Gamble to represent it in the case under a contract by which Gamble was to receive a contingent fee of 25 per cent, of the amount recovered upon the insurance policies.

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Bluebook (online)
151 S.E. 372, 169 Ga. 631, 1929 Ga. LEXIS 423, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kimball-v-casey-ga-1929.