Landau v. Laughren

357 S.W.2d 74, 1962 Mo. LEXIS 716
Supreme Court of Missouri·Decided April 9, 1962·No. 48665·Published·Cited by 22 cases

Opinion

STORCKMAN, Judge.

This action for an accounting was brought by the plaintiff, Sherman Landau, individually and as surviving partner of Miller & Landau, a partnership for the practice of law, against the defendant, Leo F. Laughren, individually and as attorney for the other defendant, Grace Miller, who is a sister of the defendant Laughren and the widow of Louis E. Miller, the deceased partner.

The petition alleged and the separate and joint answer Of the defendants admitted that numerous, complicated mutual accounts were involved, and the Honorable Raymond E. LaDriere, a retired circuit judge duly qualified as a commissioner and referee under §§ 476.4S0 and 476.500, RSMo 1959, V.A.M.S., was appointed as referee by the Circuit Court of St. Louis County and was assigned to serve as such by an order of the Supreme Court. The referee heard the evidence, took the accounts, made findings of fact and conclusions of law, and filed his report. The plaintiff, alone, filed exceptions to the re *76 port of the referee. His exceptions were heard and overruled and judgment was rendered in accordance with the findings of the referee. The plaintiff filed a motion for a new trial which was overruled and he has appealed. The prayer of plaintiff’s petition is for a judgment of $16,289.73 and interest. His motion for new trial asserts that his aggregate recovery of $2,211.87 is inadequate in that he is entitled to a judgment for $21,007.94 including interest.

In the summer of 1945 the plaintiff and Louis E. Miller formed a partnership for the practice of law under the firm name of Miller & Landau. There was no written contract between them, but they shared equally in the net proceeds derived from their practice. The partners engaged in the civil practice of law, but the major portion of their law business was the representation of claimants for damages on account of personal injuries and property damage. Mr. Miller’s services consisted primarily of the trial of jury cases, while the plaintiff handled the office work, interviewed clients, took statements and depositions, prepared and filed pleadings, attended to pretrial and aftertrial motions, tried nonjury cases, prepared briefs in the trial court, and briefed and argued the firm’s cases on appeal.

The partnership of Miller & Landau continued until it was dissolved at the instance of Mr. Miller as of June 1, 1952. Thereafter, until the death of Mr. Miller, four months later on November 1, 1952, the plaintiff and Mr. Miller continued to occupy the same offices, to maintain a firm bank account, and employ the same secretarial help, and to pay office expenses from the partnership bank account. After June 1, 1952, the plaintiff and Mr. Miller continued to work together in processing the cases which had come to the firm prior to June 1, 1952, but legal matters referred to them after June 1, 1952, were handled by the one to whom the matter was referred unless there was a specific agreement for association in a particular case.

The evidence showed that there were/approximately forty-one pending actions or claims for damages which had not been disposed of at the time of Mr. Miller’s death on November 1, 1952. The essential issues in this accounting suit involve the proper division of the attorney fees received in these cases and whether the plaintiff is entitled to be reimbursed for one-half of the amount expended by the partnership for the maintenance of the office library which had its origin in law books owned by Mr. Miller individually.

The defendant Laughren represented his-sister as her attorney at all times after the death of her husband. He also tried some of the partnership jury cases and disposed of others by settlement. But the necessity of dealing separately with the interests of the defendant Grace Miller, as widow or as executrix of the estate of Louis E. Miller, deceased, and of the defendant Lau-ghren, was obviated by an agreement by the parties to the suit that the defendants may be considered as one entity, and any orders or judgments for or against them be entered accordingly. After the death of Mr. Miller, practically all contacts, negotiations and arrangements with the plaintiff were made by the defendant Laughren. Consequently, the defendant Laughren will be intended when the singular defendant is used in the course of this opinion.

The evidence is convincing that within a few days after the death of Mr. Miller, the plaintiff and the defendant Laughren made an agreement of some sort for the participation of each of them in the disposition of the partnership business not concluded at the time of Mr. Miller’s death. The precise nature of this agreement and its application to each of the cases is the principal issue in this accounting suit. The respective position of the parties and the salient evidence on this issue is well-stated by the referee in his report as follows :

“Landau, the plaintiff, contends that there was no agreement that Laughren would *77 handle all the cases and that the fees would be divided equally between plaintiff, on the one hand, and Laughren and Grace Miller on the other, as if the latter two (defendants herein) were taking the place of Mr. Miller, the deceased. (P. 389)

“Plaintiff further states that on the contrary he proposed that Laughren handle only the trial of the jury cases on a 50-50 basis but that Laughren did not agree to that, (see page 36 for Landau inconsistent statement), and hence there was no binding contract in existence. (See letter Landau to Laughren Dec. 30, 1953, Tr. p. 556, and Feb. 13, 1954, PI. Ex. 5; also Laughren to Landau Mar. 2, 1954, PI. Ex. <6. See also Page 48).

“In answer to Mr. Laughren’s question during trial, Mr. Landau testified that ■'When you took a case that was completely prepared and negotiated a settlement in the case you performed a service for which you were not engaged and, for that reason, are not entitled to compensation, and it is a service which I could have performed myself.’ (P. 215).

“He admits, however, that Mrs. Miller would be entitled to one-half of any fees arising because of work done on a given •case before Miller’s death and adds that he should receive not only the other half but is also entitled to be paid on quantum ■meruit for the percentage of the work done by him after his partner’s death, (See Exhibit 27).

“Mr. Laughren testified (P. 382) that Landau stated he would like him (Lau-•ghren) to handle the Miller and Landau ‘cases with him jointly and on an equal fee •division basis, that he would much prefer me handling the cases than to turn them •over to some other lawyer with trial experience; that he would have to pay such •a lawyer fifty percent of the fee for trying the cases; that he would do all the preliminary work, and after-trial work; that I would handle the cases after they came ■on the docket. * * * I asked him what he meant by a division of the fees and he said that he would divide the fee with me, or the estate, on a fifty-fifty basis, * * * of course I would have to make arrangements with the Miller estate to pay for the work Mr. Miller had done in the cases prior to his death and any interest that the estate had in the cases at that time * * * ’. (Page 383). The next day (P. 389) Mr. Landau said ‘that in the main Mr. Miller’s work was to handle the cases after they came on the trial docket. I asked Mr.

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Landau v. Laughren, 357 S.W.2d 74, 1962 Mo. LEXIS 716 (Mo. 1962).

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