McAvoy v. Schramme

238 A.D. 225, 264 N.Y.S. 181, 1933 N.Y. App. Div. LEXIS 9468
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMay 12, 1933
StatusPublished
Cited by14 cases

This text of 238 A.D. 225 (McAvoy v. Schramme) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McAvoy v. Schramme, 238 A.D. 225, 264 N.Y.S. 181, 1933 N.Y. App. Div. LEXIS 9468 (N.Y. Ct. App. 1933).

Opinion

O'Malley, J.

The plaintiff, as executrix, sues at law to recover for legal services performed by her testator, an attorney. The action is predicated upon a written contract of retainer between the testator and the individual defendant, Schramme, made on February 9, 1917. The corporate defendant was sought to be held upon the theory that it adopted and ratified.the agreement made by Schramme, one of its stockholders, and that it received and enjoyed the full benefit of the services rendered.

The agreement involved was'before us on a former appeal on a complaint, whereby plaintiff sought to enforce an alleged equitable lien. Such relief was denied upon the ground that the facts alleged afforded no basis for such relief. (McAvoy v. Schramme, 219 App. Div. 604.) We were affirmed by the Court of Appeals. (McAvoy v. Schramme, 245 N. Y. 575.) Plaintiff then elected to proceed at law.

The agreement sued upon reads:

Whereas Sidney C. Schramme, residing at Spuyten Duyvil, New York, and having his place of business at No. 277 Broadway, New York City, is the holder of approximately thirty-five (35) per cent of the stock of the Inwood Land & Improvement Company, which company owns a tract of land shown on the attached map, which is signed by the parties hereto for the purpose of identification, the balance of said stock being owned by Ladenberg, Taiman & Co., and Whereas the said Sidney C. Schramme is desirous of realizing on his said holdings,
“ Now therefore, it is agreed as follows:
“ I. The said Sidney C. Schramme hereby retains Francis S. McAvoy as his exclusive attorney to represent him and arrange, if possible, to realize in whole or in part on his holdings, and the said Francis S. McAvoy agrees to use his best endeavors to assist in realizing upon such holdings, which is to be accomplished by way of sale, mortgage or exchange or in any other manner approved by said Sidney C. Schramme.
II. The said Francis S. McAvoy for his services is to receive in cash twenty-five per cent of whatever is realized by the said Sidney [227]*227C. Schramme out of such holdings, whether the same be by way of sale, mortgage, hypothecation, exchange or in any other manner.
“ In witness whereof, the parties hereto have hereto set their hands and seals this 9th day of February, in the year nineteen hundred and seventeen.
“ S. C. SCHRAMME,
“ FRANCIS S. McAVOY.”

When the agreement was made the corporate defendant, Inwood Land and Improvement Company, Inc., owned a tract of unimproved land in the Inwood Hill section of the borough of Manhattan, consisting of some 300 city lots. This was the corporation’s only asset. The property was hilly woodland in its natural state. Foreclosure of a mortgage was threatened and there was danger that some equity of the corporation might be wiped out. Those interested in the corporation, including the defendant Schramme, who was the owner of 550 shares of the total issue of capital stock of 1,500 shares, were desirous of disposing of the property. The evidence shows there was little prospect at the time of selling the property at an advantage either in whole or in part.

Plaintiff’s evidence was ample to show that, as a result of the efforts of the testator, the city of New York was induced, through the various city departments having the matter in charge, including the board of estimate and apportionment, to change the map or plan of the city by laying out an addition to the Inwood Hill Park, which adjoins the property in question, so as to include the land as a part of such park. This was finally accomplished by resolution of the board of estimate and apportionment adopted and made effective by the signature of the mayor on April 13, 1923. The city authorities acted pursuant to section 442 of the Greater New York Charter in so changing the map or plan of the city as to include the property for park purposes.

Immediately thereafter the city proceeded to condemn the property, with the result that on January 11,1927, a net award in the sum of $836,208.60 was paid to the corporate defendant for the property so taken. The defendant Schramme’s proportionate share of this award, as measured by his stock holdings in the corporation, was the sum of $306,052.35. Plaintiff has recovered slightly less than twenty-five per cent of this sum, or $76,500, which, with interest and costs, including an extra allowance, makes a total judgment in the sum of $98,647.63. The complaint as against the corporate defendant was dismissed at the close of the case.

This judgment is attacked upon various grounds. It appears without dispute that the defendant Schramme terminated the testator’s contract of retainer on May 21, 1923. The alleged [228]*228reason for the discharge was that certain litigation with the owners of the majority stock of the corporation had been terminated. It is urged, therefore, that plaintiff, if entitled to recover at all, was limited to a recovery upon the theory of a quantum meruit for the reason that at the time the retainer was terminated the testator had not fully performed. It is further contended that a recovery upon any theory may not be sustained by reason of plaintiff’s failure to show performance by way of proof that the defendant Schramme had in fact realized upon his holdings in the corporate defendant; that proof of payment of the award to the corporation falls short of the burden required to be borne by the plaintiff under the contract sued upon.

It is well established that a client may discharge his attorney at any time for any reason he deems sufficient. In such circumstances the attorney is relegated to an action for the reasonable value of his services, unless he has fully performed his contract. In the event of full performance prior to discharge, however, the attorney may stand upon his contract and the measure of his damages is the agreed value of his services. (Martin v. Camp, 219 N. Y. 170; Matter of City of New York, Id. 192; Matter of Dunn, 205 id. 398.)

Whether plaintiff’s testator had in the circumstances of this case fully performed his contract prior to his discharge was left to the jury as a question of fact. It is urged by the plaintiff respondent that their finding in this respect had support in the evidence and may not be disturbed. Appellant contends that full performance of the contract of retainer could not be had until Schramme received in cash or otherwise his distributive share of the corporate assets realized by reason of the city’s taking title to the real property.

A determination of this question depends upon an interpretation of the contract of retainer, particularly with respect to the intention of the parties as disclosed by its terms in the light of the surrounding facts and circumstances. It is true that by the use of the word realize ” there is ordinarily intended the receipt of cash in hand. (Bittiner v. Gomprecht, 28 Misc. 218; Lorillard v. Silver, 36 N. Y. 578, 579.) It has been so held in jurisdictions other than New York. (Chelan Orchards v. Olive, 134 Wash. 324; 235 Pac. 905; Weldon v. Newson, 67 Colo. 502; 186 Pac. 516.)

The contract under consideration, however, may not receive such a narrow interpretation.

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Bluebook (online)
238 A.D. 225, 264 N.Y.S. 181, 1933 N.Y. App. Div. LEXIS 9468, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcavoy-v-schramme-nyappdiv-1933.