Langdon v. Kennedy

224 N.W. 292, 118 Neb. 290, 63 A.L.R. 896, 1929 Neb. LEXIS 114
CourtNebraska Supreme Court
DecidedMarch 28, 1929
DocketNo. 26415
StatusPublished
Cited by12 cases

This text of 224 N.W. 292 (Langdon v. Kennedy) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Langdon v. Kennedy, 224 N.W. 292, 118 Neb. 290, 63 A.L.R. 896, 1929 Neb. LEXIS 114 (Neb. 1929).

Opinion

Hastings, District Judge.

This action is a controversy between attorneys over the [291]*291division of a fee. The defendant collected the amount of the fee due under a contract for a contingent fee and retained two-thirds of the fee and paid the remaining one-third to the plaintiff as his share. Plaintiff claimed he was entitled to an equal division of the fee and commenced this action in the county court of Douglas county to recover the difference. Judgment was rendered in that court in favor of the plaintiff and appealed to the district court by defendant. In that court plaintiff filed a motion to strike out certain parts of the answer of defendant on the ground that same changed the issues from what these were in the lower court. The motion was sustained. Thereupon, plaintiff filed a demurrer to the answer of defendant, stating as ground therefor that the answer failed to state facts sufficient to constitute a defense to plaintiff’s caiuse of action. The demurrer was sustained, and, defendant refusing to plead further, judgment was entered in favor of the plaintiff for the full amount claimed. Defendant appeals.

It is first contended that the trial court committed error in sustaining the motion to strike out certain parts of the answer, and, second, in sustaining the demurrer to the answer.

The motion to strike was sustained to that part of defendant’s answer which alleged, in substance, that defendant advised plaintiff of his intention to claim two-thirds of the fee and that plaintiff made no objection thereto, hut permitted the defendant to brief and argue the case on appeal and brief -and argue two motions for rehearing, and that by such conduct and silence on his part, when advised of the intention of defendant, plaintiff was thereby estopped from claiming a 50 per cent, division of the fee. An examination of the answer in the county court shows that nothing of this kind was alleged. If the new allegations of the answer in the district court were sufficient to plead an estoppel, then it presented a change of the issues from what these were in the county court, and the ruling of the trial court striking out siuch allegations [292]*292was right; if the allegations were not sufficient to allege an estoppel, then they present no defense to plaintiff’s cause of action and no prejudice resulted in their being stricken from the answer.

The remaining question involved is: Was error committed in sustaining the demurrer to the answer?

The allegations of the petition, so far as they are material to the solution of the question presented, are: That on the 7th day of Janiuary 1919, plaintiff entered into a contract with one John Mercer whereby plaintiff agreed to represent Mercer as his attorney in an action to recover damages for personal injuries against the Omaha & Council Bluffs Street Railway Company, of Omaha, Nebraska; that under the terms of said contract plaintiff was to receive from Mercer 40 per cent, of any sum recovered from said street railway company; that after plaintiff and said Mercer entered into said contract plaintiff, as agent and attorney for said Mercer, engaged defendant firm, a copartnership, to assist plaintiff in representing said Mercer; that suit was filed in the district court for Douglas county by Mercer against said street railway company and prosecuted to judgment, which judgment, on appeal to the supreme coiurt was reversed and remanded.

Plaintiff further alleged that, on or about the time of the beginning of the second trial of said suit in the district court, plaintiff and Yale C. Holland, acting for said partnership, entered into an oral agreement whereby said plaintiff and said defendant were to share equally whatever was recovered or obtained in said suit on said contract between plaintiff and Mercer.

The allegations of the answer of defendant, so far as they are material, admit the contingent fee contract between the plaintiff and Mercer; admit that plaintiff employed the defendant to prosecute the action named in his petition to final judgment, and that the second trial of said case resulted in a verdict and judgment for $7,500, which amount with interest and costs was ultimately collected by defendant, and that the fee which attorneys for [293]*293plaintiff in that action was received was approximately $3,600. The defendant specifically denied that defendant ever, at any time, through Yale C. Holland or any other member of the firm, entered into any agreement with plaintiff, oral or in writing, whereby plaintiff and defendant were to share equally in the fee, but, on the contrary, alleged that there was at all times an implied understanding that, if successful in winning said lawsuit, defendant’s share of the fee would be commensurate with its efforts and the results obtained and the service rendered, and that it would ibe what the services were fairly and reasonably worth. Defendant further alleged that it did all the work in preparing the case for trial, filing of pleadings, conducted both trials in the district court, argued the motions for new trial, prepared briefs in both appeals and in motions for rehearing; that defendant did all the work, and that the time expended thereon amounted to more than 26 full days, and that the plaintiff was of no assistance whatever, either in the preparation of the case or the trial thereof or the presentation thereof to the supreme court. Defendant alleged that its services in said case were fairly and reasonably worth the sum of $2,500, and that a division of the fee in the proportion of one-third to plaintiff and two-thirds to defendant was more than fair and reasonable to the plaintiff under the circumstances. Defendant further alleged that the custom and practice in such cases, where the forwarding attorney contributes no more to the case than did plaintiff in this instance, is for the forwarding attorney to receive one-third and the trial attorneys two-thirds of the fee, and that there was an implied agreement that the defendant was to receive the latter amount in the event of the successful outcome of the suit. Defendant for further answer denied all the allegations of plaintiff’s petition not admitted.

The demurrer to the answer admitted the truth of the facts well pleaded, but not the averments of legal conclusions therein.

[294]*294The only construction to be placed upon the allegations of the answer are: That plaintiff and defendant, if successful in winning the lawsuit, were to share in the fee that would be obtained under plaintiff’s contract with Mercer; if not successful, they were to have no fee.

Under this construction of the pleadings, plaintiff and defendant were engaged in a joint adventure and occupied a special partnership relation and, it not appearing' from the facts alleged in the answer that there was any agreement as to how the fee was to be shared by the parties, if successful, the law requires that they share equally in the distribution. In the case of Jones v. Thomas, 106 Neb. 635, it was held by this court: “Where several attorneys engage in the prosecution of litigation for a contingent fee, in the absence of any other agreement, they will be held, upon the successful result of the suit, to share equally in the distribution of the fee.” See Underwood v. Overstreet, 188 Ky. 562, 10 A. L. R. 1352; Gill v. Mayne, 162 N. W. (Ia.) 24; Henry v. Bassett, 75 Mo. 89; Senneff v. Healy, 155 Ia. 82, 39 L. R. A. n. s. 219; Robarts v. Haley, 65 Cal. 397; Ford v. Freeman, 40 Cal. App. 221; Hereford v. Meserve, 272 Fed.

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Cite This Page — Counsel Stack

Bluebook (online)
224 N.W. 292, 118 Neb. 290, 63 A.L.R. 896, 1929 Neb. LEXIS 114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/langdon-v-kennedy-neb-1929.