Neale v. Hinchcliffe

189 P. 1116, 21 Ariz. 452, 1920 Ariz. LEXIS 138
CourtArizona Supreme Court
DecidedJune 3, 1920
DocketCivil No. 1784
StatusPublished
Cited by6 cases

This text of 189 P. 1116 (Neale v. Hinchcliffe) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Neale v. Hinchcliffe, 189 P. 1116, 21 Ariz. 452, 1920 Ariz. LEXIS 138 (Ark. 1920).

Opinion

ROSS, J.

Appellant, as plaintiff, administrator of the estate of George H. Neale, deceased, insti[453]*453tuted this suit against appellee, as defendant administrator of the estate of Eugene S. Ives, deceased, upon a written contract to recover the sum of $9,000. Both decedents were lawyers and as such were employed by the Cunningham heirs to represent them in litigation against the Costello estate. The history of the lawsuits, their magnitude and character, may be found reported in 16 Ariz. 447, 147 Pac. 701; 16 Ariz. 479, 147 Pac. 714. Also in 19 Ariz. 512, 172 Pac. 664, on second appeal. They had separate agreements with their clients as to their compensation and services to be rendered. Under date of June 27, 1911, Ives contracted “to render such professional service as may be necessary in the preparation and general management of said litigation from this time until the conclusion of said litigation by the highest appellate tribunal,” for “twenty per cent of the amount received from the said Costello, whether by judgment or by compromise.” Under date of February 26, 1912, Neale entered into a contract identical with the Ives contract, except that his compensation was to be fifteen per cent of recovery, “whether by judgment or compromise.” On January 28, 1913, Neale died. Before his death,however, he and Ives and Boy Norfoot, who was associated with them, had brought suit and tried it in the superior court of Cochise county, and obtained a verdict favorable to the Cunningham heirs. Thereafter, on February 27, 1913, judgment was entered on verdict awarding the Cunningham heirs the sum of about $125,000. On May 20, 1913, the administrator of George H. Neale and Jane Neale, sole beneficiary under his will, as parties of the first part, entered into a written contract with Ives, as party of the second part, which — after reciting in the preamble the history of the litigation up to that date and Neale’s connection therewith, together with the fact that defendant had appealed, and plaintiffs also [454]*454had appealed, contending the “judgment should have been for a larger amount” — contains the following stipulations:

“Now, therefore, in consideration of two thousand dollars ($2,000) in hand paid by the party of the second part to the parties of the first part, the receipt whereof is hereby acknowledged, and of the agreement of the party of the second part to pay nine thousand dollars ($9,000) conditioned as hereinafter provided, the parties of the first part do sell, assign, and transfer to the party of the second part, Ms executors, administrators and assigns, all rigiit, title and, interest which the said George H. Neale, or the parties of the first part, had or have in or to the said contract, and the said contract and all right, title and interest which the said George H. Neale, or the parties of the first part had or have in the said judgment or claim or the proceeds thereof.
“The party of the second part agrees that if the said judgment be affirmed, or if the Supreme Court should upon the appeal of the plaintiffs direct or render judgment for a larger amount than the amount of the present judgment, and collection be made upon said judgment from the estate of the said Costello, that the party of the second part will forthwith, out of that portion of the proceeds of the said judgment paid to him as attorney and counsellor at law as compensation for his services, pay the sum of $9,000, the said sum to be paid immediately and forthwith upon the receipt of such compensation by the said party of the second part, and the parties of the first part to have a lien and an assignment of the said proceeds to the extent of the said nine thousand dollars ($9,000).-
“If the said action should be compromised, then the said nine thousand dollars ($9,000) is to be paid in the same manner as if the said judgment had been affirmed.”

On the same day, to wit, May 20, 1913, the Cunninghams ratified and approved in writing the above sale and assignment of the Neale contract to Ives; the latter agreeing that, should the judgment be re[455]*455versed and a new trial ordered, lie would at his own cost and expense, and without cost to the Cunning-hams, employ adequate and satisfactory counsel to assist in any other trial that might be ordered or any subsequent appeal. This instrument also contained this stipulation:

“It is hereby understood and agreed that said Ives shall have a lien upon any amount recovered by judgment or compromise, to the extent of 35 per cent agreed to be paid to him by virtue of these premises and the various contracts hereto annexed.”

After the exchange of these different agreements, there was considerable litigation. The Supreme Court ordered a new trial, which was had in due course. From the judgment a second appeal was taken, and the judgment affirmed in part and reversed in part. While in this status, the controversy was compromised by the defendants paying to plaintiffs the sum of $200,000. Before the settlement, Ives died, but his estate has been paid thirty-five per cent of $190,000; $10,000 having been deducted and paid to the Cunningham heirs, by mutual consent of all parties, before the $190,000 was divided between the Cunningham heirs and their attorneys.

These facts all appearing in the pleadings, the court overruled a demurrer to the defendants’ answer, and, upon motion of the defendant, entered judgment for the defendant upon the pleadings. The plaintiff appeals to this court, and assigns as errors: (1) The order of the court overruling his demurrer to the answer, and (2) the entry of judgment in favor of defendant upon the pleadings. Other facts appearing in the pleadings will be stated in the course of the opinion. The whole controversy revolves around the meaning that shall be given to the assignment of the Neale contract to Ives, dated the twentieth day of May, 1913. It is the contention [456]*456of the appellant that the fair and reasonable import of that contract is that the Neale estate should receive, in addition to the $2,000 payment of cash, a further sum of $9,000, since the litigation was successful and a favorable compromise effected. The contention of appellee is that Ives’ liability for the $9,000 was contingent upon the affirmation by the Supreme Court of the judgment for $125,000, or for a larger amount and the collection thereof, or upon a compromise of said judgment, and that, since that particular judgment was reversed, Ives was relieved of any obligation to pay the Neale estate $9,000, even though later a much larger sum was realized by compromise of the action.

It seems to us the construction contended for by appellee is a rather strained, not to say an unnatural, construction of the contract liability assumed by Ives to the Neale estate. His learning and ability were of' a very high order. He knew when Neale died that Neale’s contract also died, and that the Neale heirs would be limited tó a quantum meruit for any services rendered by Neale in his lifetime. Sargent v. McLeod, 209 N. Y. 360, 52 L. R. A. (N. S.) 380, 103 N. E. 164. He therefore took an assignment thereof with the written consent and approval of the Cunningham, heirs who thereby became bound to pay Ives the fifteen per cent theretofore agreed to be paid Neale. His obligation to the Neale estate is well guarded and well stated in the contract of assignment.

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Cite This Page — Counsel Stack

Bluebook (online)
189 P. 1116, 21 Ariz. 452, 1920 Ariz. LEXIS 138, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neale-v-hinchcliffe-ariz-1920.