McNutt v. Hannon

191 P. 1108, 183 Cal. 537, 1920 Cal. LEXIS 439
CourtCalifornia Supreme Court
DecidedAugust 12, 1920
DocketL. A. No. 5337.
StatusPublished
Cited by4 cases

This text of 191 P. 1108 (McNutt v. Hannon) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McNutt v. Hannon, 191 P. 1108, 183 Cal. 537, 1920 Cal. LEXIS 439 (Cal. 1920).

Opinion

*538 WILBUR, J.

Cyrus F. McNutt and J. E. Hannon, the defendant, were law partners from 1897 until the death of the former, May 31, 1912. The plaintiff, as executor of the will of the deceased partner, brought this action against the surviving partner for an accounting and recovered judgment for $9,292.70, being one-third of the fees that the trial court found resulted from the partnership. Defendant appeals from the judgment on a bill of exceptions, and the plaintiff, while claiming that there should have been an equal division of the $27,878.10 fees received by the surviving partner, does not appeal.. The court found that the plaintiff is “equitably entitled to receive one-third” thereof.

The defendant claims that the evidence is insufficient to sustain the finding that the partnership existed at the time of the death of plaintiff’s testator, and the finding that the fees defendant was required to account for were' received for the partnership; and even if they were for partnership business, that the decision of the trial court was inequitable, inasmuch as most of the work for which the fees were paid was done by defendant after the death of his partner. The first claim of the defendant is that the partnership was dissolved about thirty days before the death of McNutt. It is sufficient upon this point to say that the evidence abundantly supports the conclusion of the trial court that the partnership continued until his death. The partners continued to occupy the partnership office and transact partnership business until McNutt became too ill to contintie in an important trial then in progress. The fees divided by the decree were largely for services rendered in the Estate of Andrew Glassell, which had been in probate from 1901 until finally distributed after the death of plaintiff’s testator. The estate was appraised at about a million dollars. The fees were partly from mortgage foreclosures begun for the administration of said estate after the death of McNutt. One foreclosure proceeding, No. 94,486, in the superior court, was begun September 18, 1912, and the attorney fee collected therein was eight thousand dollars. In another, No. 94,487, begun the same day, the fee received was $4,833, and in action No. 97,715, begun January 11, 1913, .the fee was four thousand dollars, and in action No. B6406, begun November, 1913, the fee allowed was five hundred dollars. The defendant claims that each foreclosure resulted from a sepa *539 rate and distinct employment after the death of his partner. We will only state the evidence that tends to support the findings. The partnership represented Hugh Glassell and Andrew Glassell, executors of the last will and testament of Andrew Glassell, deceased, from February 16, 1901, to January 10, 1912, when, upon their resignation, the Southern Trust Company was appointed as their successor at the instance of the partnership acting for the heirs, and thereafter the partnership continued to act for the successor in all matters pertaining to the estate, but without any express contract so to do. The foreclosure of the above-mentioned mortgages, as well as other work for which fees were claimed by the defendant, was an essential part of the work of preparing the estate of Andrew Glassell for distribution and the fees therefor were properly allowable to the administrator in its account as such, and not otherwise. There is other evidence supporting the conclusion that the foreclosures were partnership business. On January 20, 1912, the defendant wrote to the newly appointed administrator as follows: “Replying to yours of January 18, in re mortgages of Lawrence, Hamilton, Cary, Pixley, Rankin and Brown. . . . We may also observe in this connection that before the resignation of Hugh and Andrew Glassell as executors, the other heirs of the estate insisted most strenuously that the mortgages should be foreclosed for the failure of the mortgagees to make the payments as they became due. We have not been advised of any change of attitude of the heirs, and understand that they still insist on that course being pursued. Referring to your request for the address of the parties whose notes you hold, we have some of them and are endeavoring to obtain the others, and will send them as soon as possible.” On February 2, 1912, an order of the superior court was made on the application of the administrator, presented by the partnership, permitting the administrator to obtain a correct certificate from the Title Insurance and Trust Company showing a correct description of the real property belonging to the estate of decedent, with plats, etc. On February 5, 1912, the defendant, by written order, instructed the Title Insurance and Trust Company to make “Foreclosure search for mortgages as below, in your usual form to property in Los Angeles County, California.” Then follows book and page of records of twelve mortgages, including all those for which *540 foreclosure fees are claimed by the plaintiff. The certificates of each mortgage search were separate, and shortly after each was delivered a foreclosure was begun to foreclose the mortgage covered by the certificate, and the cost of the certificate was claimed and recovered with interest in the foreclosure. As the fees allowed in the foreclosure cases were found by the trial court to belong to the partnership, we may note at this point that defendant claims that the fees in three of these cases were made unusually large by stipulation to cover work done for the defendants therein, and for a corporation organized by the heirs to purchase the property at foreclosure sale and that the proportion thereof resulting from such other work does not belong to the partnership, even if the foreclosure fee was a partnership asset. It is sufficient in that regard to say that the fact that such fees were allowed to and. paid by the administrator as a fee for such foreclosure is sufficient to sustain the finding of the trial court, if it did not compel its conclusion. It will be necessary to more fully state the additional evidence concerning the foreclosure cases, as the facts vary somewhat in each case. On May 28, 1912, the administrator mailed the defendant the notes and mortgage of D. W. Lawrence, with interest computed to May 28, 1912, amounting to $148,406.27, in accordance with its practice when foreclosures were contemplated. The search of the records was completed April 30, 1912, and the expense thereof was claimed and recovered in the foreclosure. The complaint was filed September 18, 1912, and numbered 94,486. The fee allowed eight thousand dollars. In case No. 94,487, filed the same day, the mortgage of Lawrence, was delivered to the defendant May 13, 1912. Interest was figured to that date. Total amount of principal and interest was $124,712.84. Certificate of search was completed April 25, 1912. Attorney fee recovered, $4,833. In the foreclosure against Carey the fee recovered was five hundred dollars. Suit was filed November 16,1913. The certificate of search for which the cost was recovered was one covered by the general order of February 5, 1912. . In the suit against Rankin (foreclosure No. 97,715) the complaint was filed January 11, 1913. The original order of search included this mortgage, but the certificate upon which the foreclosure was based was covered by a subsequent order. [1] While these complaints were all filed long after the death of McNutt, the relationship of *541

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Bluebook (online)
191 P. 1108, 183 Cal. 537, 1920 Cal. LEXIS 439, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcnutt-v-hannon-cal-1920.