Kimball v. Public Utility District No. 1

391 P.2d 205, 64 Wash. 2d 252, 1964 Wash. LEXIS 325
CourtWashington Supreme Court
DecidedApril 16, 1964
Docket36875
StatusPublished
Cited by34 cases

This text of 391 P.2d 205 (Kimball v. Public Utility District No. 1) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kimball v. Public Utility District No. 1, 391 P.2d 205, 64 Wash. 2d 252, 1964 Wash. LEXIS 325 (Wash. 1964).

Opinion

Hale, J.

Plaintiffs claimed $42,000 in attorneys’ fees from defendant Public Utility District No. 1 of Douglas County. The P.U.D. says that plaintiffs were paid in full measure for all professional services performed. From judgment on a jury verdict rendered in a neighboring county awarding plaintiffs exactly $42,000, the P.U.D. appeals.

Ned W. Kimball, admitted to the practice of law in 1938, and C. M. Clark, admitted in 1946, had an informal partnership but maintained separate offices, with Kimball in Water-ville and Clark in Coulee City. In 1955, the P.U.D., then operating only a small distribution system, engaged Mr. Kimball to act as its attorney on a modest monthly retainer, and a year or more later Mr. Clark joined him in the arrangement. The P.U.D., at the time, had only occasional need for professional services of its attorneys, usually consulting them on minor problems.

But the P.U.D. nurtured ambitions to build a great dam on the Columbia for the generation of electric power— ambitions once abandoned, but now revived. It asked plaintiff attorneys to renew an earlier program designed to create a generating system called the “Wells Hydroelectric Project.” It employed the attorneys to get on with the complex legal business upon which success of the project depended, *254 a professional employment necessarily surrounded by complicated engineering, hydraulic, geological and financial problems. But we are not here concerned with the technical, scientific and financial aspects of this gigantic project, and, accordingly, proceed directly to the contract for professional services out of which this case arises. The terms of the agreement are not in dispute.

In August, 1958, under a contract with the P.U.D., Bechtel & Company, an engineering and construction firm of San Francisco, submitted to the P.U.D. a comprehensive feasibility report based on scientifically performed engineering and geological studies. It pronounced the project feasible, from both a revenue and an engineering standpoint; and it estimated the cost of construction at $135,690,500, exclusive of expenses for legal services and administration, and interest on bonds during construction. Total costs of the completed project were calculated at $160,000,000.

Following delivery and study of the Bechtel feasibility report, the board of three commissioners of the P.U.D. — one member dissenting — employed plaintiff attorneys, Kimball and Clark, to perform all necessary legal services in connection with the promotion and construction of the Wells Hydroelectric Project on the Columbia River. The P.U.D. agreed to pay plaintiffs $1,500 per month until such time as the project was fully authorized and the revenue bonds necessary to assure completion were sold. Upon final authorization and sale of the necessary revenue bonds and the assurance of completion of the project, the P.U.D. agreed to pay to the plaintiffs a fee of $130,000, less the amount already paid them in the $1,500 monthly remittances.

To describe the contract otherwise, in exchange for counsel’s professional services toward consummation of the Wells Project, the P.U.D. promised to pay them a total fee of $130,000 upon completion with payments of $1,500 per month to apply thereon. If at any time it appeared certain that the project could not be undertaken or brought to completion, the contract for professional services thereupon ended, and the $1,500 per month payments would cease. Apparently, both parties to the agreement were satisfied *255 that the project would be assured either of completion or abatement long before the $130,000 fee had been paid at the rate of $1,500 per month.

Plaintiffs entered upon performance of the contract February 1, 1959. Twenty-two months later, following a change in the membership of the P.U.D. board of commissioners through an election, the retainer contract was terminated by formal resolution and notice. The attorneys assert $75,000 to be the reasonable value of their services to the P.U.D. in advancing the Wells Hydroelectric Project, on which they have received $33,000 through the $1,500 retainer; thus, they claim a balance due them of $42,000. The retainer agreement also provided that the P.U.D. would reimburse the attorneys for all out-of-pocket expenses specially incurred by them on the Wells Project, such as expenditures for travel, hotels, meals, mileage and other necessary costs. This latter provision is important only for the reason that it provided a documentary basis to substantiate some of the time charged by the plaintiffs to the Wells Project.

The P.U.D. argues that its $1,500 per month payments fully compensated the attorneys for all services performed during the 22-month period and that recovery on quantum meruit does not lie because plaintiffs, for want of daily time records, are unable to prove the precise number of hours spent at this task. The district says that, to allow recovery here in excess of the $1,500 per month, places it at the mercy of the unsupported, vaguely established, claims of its own attorneys. In short, it asserts that, in the absence of proof by daily diary of time and efforts spent, the evidence is insufficient as a matter of law to support recovery quantum meruit.

We do not read the contract between attorneys and client to support appellant’s position. The arrangement promised professional services until the day the services would no longer be needed to advance the project for a promised fee of $130,000, or, in the alternative, $1,500 per month until the district was satisfied that the project could not be undertaken. The agreement contemplated retaining plaintiffs as counsel until one point or the other had been reached— *256 either assurance of consummation of the project or certainty of its abandonment. Regardless of the time and effort put in by them, when the project was assured of. completion by sale of the revenue bonds, plaintiffs were to receive a fee of $130,000, or $1,500 per month until the district should earlier come to the conclusion, for one reason or another, that the project would never reach the point where the revenue bonds were marketable.

There being no duty express or implied then that the plaintiffs maintain daily time records on the Wells Project, they came within the familiar rule that they were obliged to prove both their services performed and the reasonable value thereof by a preponderance of the evidence in the same way that any other claim for services quantum meruit is proved. Kimball testified, by means of cross references to the monthly expense vouchers regularly submitted to, approved and paid by the appellant, that during the 22-month period he had devoted 107 days to the Wells Project. Clark showed 91 full days by the same reference. These vouchers supported evidence of trips undertaken by the attorneys on behalf of the project to New York, Washington, D.C., Seattle and Portland.

In addition, Kimball stated that he spent at least 2 hours of his office day on the project for a total of 830 hours; and Clark, by estimating his average daily time in the office working on Wells, figured 324 hours. Mrs. Lola Rinker, legal secretary and formerly employed by plaintiff Kimball in his office during the 22-month period, estimated that 75 per cent of his time in the office was spent by him on legal affairs of the Wells Project, and she said that Mr.

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Bluebook (online)
391 P.2d 205, 64 Wash. 2d 252, 1964 Wash. LEXIS 325, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kimball-v-public-utility-district-no-1-wash-1964.