Meagher v. Kavli

88 N.W.2d 871, 251 Minn. 477, 1958 Minn. LEXIS 576
CourtSupreme Court of Minnesota
DecidedMarch 7, 1958
Docket37,113
StatusPublished
Cited by64 cases

This text of 88 N.W.2d 871 (Meagher v. Kavli) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Meagher v. Kavli, 88 N.W.2d 871, 251 Minn. 477, 1958 Minn. LEXIS 576 (Mich. 1958).

Opinion

Nelson, Justice.

This action arises out of an agreement to perform legal services in behalf of Albert C. Kavli and Edward L. Kavli, individually, in the defense of an action originally brought by Glen Dix against Harris Machinery Company, lessee, Clarence Peterson, its employee, A. C. Kavli, and E. L. Kavli, owner and lessor of premises involved.

The Dix case involved the alleged careless operation of an elevator in a warehouse in midway, St. Paul. Albert C. Kavli had no ownership or interest in the building. The case was tried before the District Court of Hennepin County and a verdict of $15,000 was rendered against defendants Harris Machinery Company, Clarence Peterson, and E. L. Kavli, who appealed to the state supreme court. This court rendered its decision of affirmance October 16, 1953. Dix v. Harris Machinery Co. 240 Minn. 218, 60 N.W. (2d) 628.

While other defendants have been named in the present action, the principal defendants appear to be Albert C. Kavli and Edward L. Kavli as individuals. Plaintiffs’ claim for services includes preparation and trial of the Dix case before the district court and services rendered in the separate appeal of E. L. Kavli to this court. In the original complaint served, plaintiffs sued to recover the reasonable value for legal services rendered, and expenses incurred, substantially in the form of the old common count in an action of assumpsit regardless of any agreement as to value.

*481 Defendants jointly interposed a denial to plaintiffs’ original complaint admitting that the plaintiffs performed certain legal services in defense of the Dix case but alleging that only a small portion of said services were rendered by the plaintiff in behalf of defendant Albert C. Kavli. It was further denied that the services were of the agreed or of the reasonable value alleged by plaintiffs and that there was a balance due in the amount prayed for. On the day of the commencement of the trial, plaintiffs moved the court to amend the complaint by adding a second cause of action on an account stated. Defendants filed written objections and gave notice of motion, if the amendment be granted, to require plaintiffs to elect whether their claim is for services rendered as alleged in the original complaint or based on an account stated.

Prior to the accident involved in the Dix case, the Preferred Accident Insurance Company of New York, an indemnity company admitted to do business in the State of Minnesota, had issued its public liability policy to E. L. Kavli. After Glen Dix had been injured and commenced suit, it immediately undertook the defense of the owner, E. L. Kavli, employing the plaintiffs as its attorneys to investigate and defend. On April 30, 1951, the Preferred Accident Insurance Company was declared insolvent and placed in liquidation pursuant to an order of the New York Supreme Court. Plaintiffs notified the Kavlis of the liquidation and that the Preferred Accident Insurance Company would no longer be in a position to defend. The Kavlis thereafter employed plaintiffs as their attorneys to carry on their defense in the Dix case, the other defendants in the action being represented by their own attorneys. The case came on for trial and was dismissed as to A. C. Kavli. Thereafter plaintiffs represented E. L. Kavli individually in the district court and on his separate appeal to this court. After affirmance of the Dix case on appeal, E. L. Kavli paid one-half of the verdict, interest, and costs.

Plaintiffs rendered their statement accompanied by letter to A. C. and E. L. Kavli, December 15, 1953. This related to legal services rendered subsequent to May 1, 1951. The total charges made had been reduced by payment of $400 as a retainer and expenses in amount of $576.16. Two payments of $300 each were made November 22, 1954, and December 24, 1954, leaving $1,738.75 as an unpaid balance. The *482 statement was delivered to E. L. Kavli personally, at his office in Minneapolis, by Mr. O. C. Adamson, an attorney from plaintiffs’ office. Plaintiffs had filed their claim with the insurance liquidator of the State of New York for services rendered as insurer’s attorneys prior to May 1, 1951.

Defendant E. L. Kavli testified that after receiving plaintiffs’ statement of account he had told Mr. Adamson, and later Mr. Arthur B. Geer of plaintiffs’ firm with whom he also discussed the matter, that he did not know how much he owed them; that the statement submitted “was too high”; that he had sent the account to the insurance commissioner in New York and that he would have to hear from that source because the insurer was supposed to pay the bill; that he had not heard on the claim and he wanted to know what the liquidator in New York thought about the amount of the bill and to be advised by him what was going to be allowed before deciding whether to pay the balance of the bill in the amount submitted. The record does not disclose any word from the liquidator in that regard. E. L. Kavli said that he knew that he was indebted in some amount to plaintiffs on account for the reasonable value of the services he had bargained for and the expenses incurred and that he made two payments of $300 each in November and December 1954 to apply on account with that thought in mind. E. L. Kavli further admitted that he knew they were obligated to pay the reasonable value of plaintiffs’ services (and expenses incurred) and that whatever he obtained from his insurer’s liquidator would be toward recoupment, toward a payment of that loss. He testified that while he had not taken up the statement of account with the plaintiffs or their representatives, item by item, he nevertheless questioned all items when he objected and therefore mailed his separate checks of $300 each to apply on plaintiffs’ account without letter, first, because he wanted to know what the liquidator was going to allow and, moreover, because the liquidator might know better what the charges should be after seeing the bill.

The testimony of E. L. Kavli strongly indicates that he had not expressly assented to owing a balance in the amount shown by plaintiffs’ statement if credence is given to his testimony that he insisted both at the time of delivery and on later occasions that the bill was too *483 high. If there had not been a mutual and express assent, then the question arises whether an assent to the correctness of the balance can be inferred from the facts, conditions, and circumstances which the record presents.

There is testimony in the record that A. C. Kavli had also stated to some member of plaintiff firm that the bill was too high and that the bill was in the main the obligation of his brother E. L. Kavli.

Mr. Adamson, testifying for plaintiffs, said that he delivered plaintiffs’ statement accompanied by letter directed to E. L. and A. C. Kavli. Later he talked to E. L. Kavli concerning the fact that the balance on account was overdue and must be paid. He testified that neither E. L. Kavli nor A. C. Kavli had, at any time, when discussing the account in person or over the telephone, said they were dissatisfied with the services rendered or that the bill submitted was too high. He said that defendants had never made a complaint to him about any item of the account during a period of 11 months which preceded the two payments of $300 each nor thereafter.

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Cite This Page — Counsel Stack

Bluebook (online)
88 N.W.2d 871, 251 Minn. 477, 1958 Minn. LEXIS 576, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meagher-v-kavli-minn-1958.