McCall's Estate

109 A. 637, 266 Pa. 379, 1920 Pa. LEXIS 578
CourtSupreme Court of Pennsylvania
DecidedFebruary 23, 1920
DocketAppeals, Nos. 33, 34 and 35
StatusPublished

This text of 109 A. 637 (McCall's Estate) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCall's Estate, 109 A. 637, 266 Pa. 379, 1920 Pa. LEXIS 578 (Pa. 1920).

Opinion

Opinion by

Mr. Justice Moschzisker,

Edward McCall, a citizen of the United States, residing at Lima, Peru, was a member of the international [383]*383banking firm of Alsop & Co., a Chilean concern; he died at his South American home in 1874. Alsop & Co. went into liquidation, and, in 1876, John Wheelwright, its liquidator, looking towards the collection of a debt due by Bolivia to the Alsop firm, made a contract with that country; but war ensued between Chile and Bolivia, and acts of the former prevented payment by the latter. In 1885, Wheelwright contracted with George S. Bout-well, Esq., to represent “him” and “said firm” in the prosecution of the claim of Alsop & Co. against Chile and Bolivia; he agreed to pay, as counsel fees, a stipulated percentage upon the amount “recovered for me or said firm,” and an effort to have part of these fees charged against the American heirs of Edward McCall gave rise to the present litigation.

Nathaniel A. Prentiss, Esq., became associated with Boutwell, they together representing Alsop & Co., or its liquidator; Wheelwright died and Henry S. Prevost succeeded him in office. Thereafter, in 1893, the United States of America and Chile created a joint commission for the consideration of claims of the citizens of each country against the other country, but the life of this body expired before it took action on the Alsop claim; in 1900, the commission was revived, and Messrs. Bout-well and Prentiss again presented that demand, but it was rejected because Alsop & Co. was “a Chilean juridical person,” and, possessing such nationality, its rights as a claimant against Chile were not comprehended by the terms of the submission, which in this respect embraced only corporations, companies, or individuals, citizens of the United States.

Prevost died in 1904, and no succeeding liquidator was appointed. Subsequently a treaty of peace was entered into between Chile and Bolivia, whereby the former appropriated a considerable sum of money to pay several specified demands against the latter, including that of Alsop & Co.

In the meantime, the Alsop claim was being pressed [384]*384¡upon the attention of the American State Department, not only by Messrs. Boutwell and Prentiss, but by other —independent—counsel representing the estate of Anne McCall, who had succeeded to the interest of Edward McCall, deceased; and, eventually, the whole matter was submitted to King Edward VII of England, for arbitration, a protocol to that end having been concluded December, 1909, by the United States and Chile.

On the death of King Edward his place was taken by George V. This time, however, although one of the partners still lived, the demand was not presented, as before, on behalf of the Alsop firm, or of its surviving member, but was made for the several individual partners, nominatim, including Edward McCall, their “heirs, assigns, representatives and devisees.” In other words, instead of putting the claim in for a Chilean entity, it was entered on behalf of certain designated American citizens.

King George made an award, in 1911, favoring the American claimants, and shortly thereafter Chile paid the amount involved to the United States government, which created a national fund for distribution by the Department of State.

There had been eleven terms, or periods, during the course of the career of Alsop & Co., each term representing a renewal of the partnership and, often, a change in the personnel of the firm. On August 16, 1912, Secretary Knox formulated an order awarding the fund on hand to the estates of the partners of Term No. 9 — among others, the estate of Edward McCall, deceased; but, immediately after this, the attorneys for George McCall, executor of Anne McCall, convinced the secretary (by proofs showing the devolution of title from Edward McCall to his sister Anne, and that the former’s estate had long since been administered and distributed) that the McCall award should be paid to the executor of Anne McCall. George McCall filed a bond, as executor, and the secretary of state issued a certificate in his favor; where[385]*385upon so much of the fund as had originally been ordered to be paid the estate of Edward McCall was given to the executor of Anne McCall.

The secretary of state, in making his award, held that, under the Act of Congress of February 27, 1896 (29 Statutes at Large 32), he could recognize only the primary claimants to the fund and lacked jurisdiction to consider derivative claims, such as the one for counsel fees here involved, presented by Nathaniel A. Prentiss, Esq., on behalf of‘himself and George S. Boutwell, then deceased; but the secretary expressly said that this was “without prejudice to such proceedings, if any, as those making the claim may see fit to bring in the appropriate tribunals for the enforcement of the rights of which they, may consider themselves possessed.”

George McCall filed an account as executor of Anne McCall, deceased, charging himself with the money received from the United States government, and claiming certain credits, with which we are not now concerned. Shortly thereafter Nathaniel A. Prentiss died, and N. A. McCarthy, as ancillary administrator of both Boutwell and Prentiss, brought forward the claim of his decedents for counsel fees, which he alleged to be due them by the McCall estates, for services rendered under the original contract with the liquidator of Alsop & Co.

The court below decided to hear and adjudge the claim at the audit of the executor’s account, in the Anne McCall estate, and no question of jurisdiction is now raised in that regard, although the Commercial Trust Co., as ancillary administrator d. b. n. c. t. a. of the estate of Edward McCall, appears as an appellant; but appellant McCarthy, representing the estates of Messrs. Boutwell and Prentiss, contends that the court erred in refusing to allow the counsel fees asked for his decedents.

It appears that Prevost, when he succeeded Wheelwright as liquidator of Alsop & Co., confirmed the agreement retaining Boutwell and Prentiss as attorneys, but, [386]*386after the decease of Prevost, in 1904, these attorneys were not retained by anyone representing either the estates of Edward or Anne McCall. In this connection, the auditing judge (Gest) properly says: “When the protocol of submission was made between Chile and the United States, by which the determination of the amounts equitably due to the individual partners of Alsop & Co. was referred to King Edward VII, the case assumed a radically different position, and the estates of Boutwell and Prentiss, in order to maintain their claim against the estate of Edward McCall, should show some contractual obligation on the part of the latter or its representatives. In the diplomatic intervention made by the United States against Chile, in consequence of which the protocol was executed, the distinction between the firm as a legal entity and the partners composing it appears clearly in every phase of the proceedings. Neither Wheelwright nor Prevost assumed in the slightest degree to contract in behalf of, or to bind, the individuals who were or had been members of the firm. This is far from being an academic or technical distinction; the liquidator of the firm of Alsop & Co.

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Bluebook (online)
109 A. 637, 266 Pa. 379, 1920 Pa. LEXIS 578, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccalls-estate-pa-1920.