Macpherson v. Bacon's

203 S.W. 744, 180 Ky. 773, 1918 Ky. LEXIS 154
CourtCourt of Appeals of Kentucky
DecidedMay 31, 1918
StatusPublished
Cited by11 cases

This text of 203 S.W. 744 (Macpherson v. Bacon's) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Macpherson v. Bacon's, 203 S.W. 744, 180 Ky. 773, 1918 Ky. LEXIS 154 (Ky. Ct. App. 1918).

Opinion

Opinion op the Court by

Judge Hurt

Affirming upon both the original and cross appeals.

This suit is a hind of an aftermath of the litigation between the county of Green and the holders of its bonds, which were issued in aid of the construction of [774]*774the Cumberland & Ohio Railroad. The bonds were attempted to be issued, as a result of an election held in the county of Green, in accordance with the act of the general assembly, which incorporated the Cumberland & Ohio Railroad Company, upon the question whether the county court should make a subscription to the capital stock of the company in the sum of $250,000.00 to be paid for in the bonds of the county, which were to run twenty years and bear interest at the rate of six per centum per annum. The entire $250,000.00 of the bonds were issued and, thereafter, were sold, some of them to residents of the state of Kentucky and others to persons, ;who were non-residents. The' county paid the coupons 'representing the interest on the bonds, until the year 1877, when it became patent, that the railroad company did not intend to carry out or perform the conditions upon which the subscription to the capital stock was voted and the bonds issued, and the county declined to any, further, pay the coupons. Several suits followed this declination, in the Federal courts, and resulted in judgments against the county upon a large number of the coupons. Qn November 15th, 1894, there was pending in the Green circuit court, a suit by F. L. Sidebottom against the county of Green upon certain bonds with their attached coupons. At the same time, there was pending in the Federal court, for the district of Kentucky, a suit instituted by John Thomas and others against the county of Green to recover a judgment upon certain bonds with their attached coupons. The county’s defense to these actions, upon the merits of the controversy, was the same in each case or in any other action, that might be brought against the county to recover judgment upon any of the bonds or coupons. The defense was, that, in the application to the county court for the order to hold the election and in the order of the court which submitted the question to the voters of the county and in the orders, which subscribed for the stock, it was provided, that the subscription was agreed to upon the condition, that the railroad should be constructed through the county and within one mile of Greensburg, and the amount of the bonds, to be expended in the construction, within the county, and the bonds were not to be issued or paid by the county, until it should be exonerated by the company from liability upon a former subscription made to the Elizabethtown & Tennessee Rail[775]*775road Company, none of which conditions had been or ever were performed by the Cumberland & Ohio Railroad Company, hence, a decision in either of the cases then pending or in any other suit, which might be brought against the county upon any of the bonds, upon the merits of the action, would determine the question of the county’s liability upon all of the bonds. For the purpose of defending the actions of Sidebottom and Thomas and any other action that might be thereafter brought against the county, on account of any of the bonds, and to have the question of the county’s liability upon the bonds determined, on the above mentioned date, a contract was entered into between the fiscal and county courts upon the one side and the firm of Bacon & Macpherson, Col. John W. Lewis and Judge D. T. Towles; all of whom were properly authorized attorneys at law, as the contracting parties upon the other side. This contract was set out in the order, which was made by the county and fiscal courts of Green county, and which is as follows:

“On motion it is ordered by the court that Bacon & Macpherson, Col. JohnW. Lewis and Judge D. T. Towles be and they are hereby employed to defend Green county in the suits of Sidebottom against Green county, pending in the Green circuit court, and the suit of John Thomas, et al.. against Green county, pending in the circuit court of the United States, at Louisville, and any other suits that may be brought against Green county on account of the bonds issued in aid of the Cumberland & Ohio Railroad Company, under the following contract, to-wit: This contract made the 15th day of November, 1894, by and between the Green county and fiscal courts of the first part and D. T. Towles, John W. Lewis and Bacon & Macpherson, of the second part, Witnesseth: That whereas there is now pending in the circuit court of Green county a certain suit against Green county wherein one Sidebottom is plaintiff, and in the circuit court of the United States for the sixth district of Kentucky a certain suit against Green county wherein one Thomas and others are plaintiffs, both of said suits being brought on bonds and coupons alleged to have been issued by said county in aid of the Cumberland & Ohio Railroad Company so called, and whereas said courts would regard as ruinous to said county tlie success of the plaintiffs in said cause, and [776]*776whereas the teal questions presented in said causes involve a very large sum of money and affect and control the total liability of said county by reason of its issue of any and all bonds in aid of said road and whereas the said courts have adjudged it necessary to employ counsel to defend said suits, the said parties of the first part hereby employ and retain the second parties to defend said causes, and in consideration of their acceptance of said employment the said first parties agree and promise to pay the said second parties for their services as attorneys the sum of $1,200.00, a fee certain, no matter how said cases may result, and further agree to pay said attorneys a sum equal to five per centum of any amount of said bonds or any bonds issued by said Green county in aid of said railroad, which they may save said Green county or the first parties or as representatives or acting for said Green county in said duties or which may be controlled and settled by the decisions rendered in said causes or either of them, and second parties are to defend all suits that may be brought against said county on account of said bonds or coupons issued by said county in aid of said road. Witness the hands of the second parties and of the judge and of the justices of the peacq of said Green county.”

Bacon & Macpherson was a partnership between Byron Bacon, deceased, and the appellant, Ernest Macpherson, for a general practice of law, and by the terms of the partnership, Bacon was to receive three-fifths and Macpherson two-fifths of the proceeds of the business of the partnership and were to bear the expenses and. losses in the same proportion. This partnership continued until the 3rd day of June, 1897, when the contract of partnership was dissolved by a contract, which was upon that day entered into between Bacon and Macpherson, and which, as appears from the written evidence of the contract executed by them upon that day, was as follows;

“June 3,1897,
“Byron Bacon, Esq.
“Esteemed Sir:
“My proposition in the matter of the firm of Bacon & Macpherson is that the firm will stand dissolved on and by the first day of June, 1897, you to attend to all of the business of the firm and that theretofore in which [777]

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Bluebook (online)
203 S.W. 744, 180 Ky. 773, 1918 Ky. LEXIS 154, Counsel Stack Legal Research, https://law.counselstack.com/opinion/macpherson-v-bacons-kyctapp-1918.