Parish v. McGowan

39 App. D.C. 184, 1912 U.S. App. LEXIS 2210
CourtCourt of Appeals for the D.C. Circuit
DecidedNovember 4, 1912
DocketNo. 2371
StatusPublished
Cited by5 cases

This text of 39 App. D.C. 184 (Parish v. McGowan) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Parish v. McGowan, 39 App. D.C. 184, 1912 U.S. App. LEXIS 2210 (D.C. Cir. 1912).

Opinion

Mr. Chief Justice Shepard

delivered the opinion of the Court:

This is not the case of a creditors’ bill to enforce a lien created by a decree of court as was Price v. Forest, 173 U. S. 410, 43 L. ed. 749, 19 Sup. Ct. Rep. 434. It is an original suit on written contracts with attorneys to prosecute a certain claim against the United States to final determination, for stipulated fees equal to 20 per cent of the amount that might be collected, and with an express lien to secure the payment of the same. Setting out the contracts, the bill alleges the prosecution of the claim before Congress to the passage of a relieving act; the diligent, but unsuccessful attempt to obtain payment under said act from the Secretary of the Treasury; and a readiness and willingness to continue the performance of the contract until prevented by the wrongful acts of the said claimant, and of his executrix, who succeeded to the legal control of the claim after the death of the claimant, December 26, 1904. Upon the allegations of the insolvency of the executrix, and her intention to remove the funds from the jurisdiction of the court, an injunction to prevent her receiving the fund was obtained. It cannot be controverted that contracts like those set out in the bill—in so far at all events as they attempt to assign, or create a lien upon, a claim against the United States,—are prohibited by sec. 3477, Rev. Stat., U. S. Comp. Stat. 1901, p. 2320, and thereby made absolutely void. Nutt v. Knut, 200 U. S. 12-21; 50 L. ed. 348—353, 26 Sup. Ct. Rep. 216; National Bank v. Downie, 218 U. S. 345, 54 L. ed. 1065, 31 Sup. Ct. Rep. 89, 20 Ann. Cas. 1116. It was said, however, in Nutt v. Knut, supra, that the provision of a contract evidencing an agreement to pay the attorney a fixed portion of the sum that might be recovered through his services might stand alone notwithstanding the illegality of the provision for the lien; such provision giving the attorney no interest in the claim itself and creating [199]*199no lien thereon. That ease was prosecuted to judgment in a State court. As stated in the opinion of the Supreme Court of the United States—on error to the State court—“No lien is asserted by the plaintiff in his pleadings. While the original petition asserted his right to be paid in accordance with the contract, the plaintiff claimed, if he could not be paid under the contract, that he be compensated according to the reasonable value of his services.” The plaintiff had prosecuted the claim to final allowance and appropriation for its payment. The question of jurisdiction in equity to entertain the case did not arise; and apparently could not have arisen under the procedure of the State. No such amendment was made in the case at bar. The complainants sued upon the contract as a whole, claiming the fee as fixed thereby, as well as the lien. Had there been an amendment abandoning the lien and relying on the quantum meruit, solely, the equity court would have been without jurisdiction.

It is contended that the allegations of the bill are sufficient to show that complainants had an attorneys’ lien upon the fund finally adjudged to the claimants’ executrix, which could be enforced by the equity court. The bill alleges that complainants rendered the services that procured the act of Congress, and also made diligent efforts to secure payment under that act by the Secretary to the time of his final refusal; that they were ready and willing to continue the prosecution of the claim to final determination, and could have done so had not the claimant during the remainder of his life, and 'his executrix thereafter, refused to continue their services. Assuming for the present that these facts were proved as alleged, the fact remains that after dispensing with their services, the executrix employed other attorneys, who instituted and prosecuted the mandamus proceeding which resulted in the final judgment, under a special contract for a liberal fee. The executrix had the right, nevertheless, to dispense with complainants services at any stage of the proceeding and retain other counsel (Re Paschal [Texas v. White] 10 Wall. 483, 19 L. ed. 992); though she could not thereby defeat their right to compensation for the [200]*200reasonable value of their services before performed. Contracts for contingent fees are not illegal, and an attorney prosecuting a cause under such contract is entitled to a lien upon a judgment recovered by him therein as well as upon collections made by him thereunder; but the lien does not extend to a judgment recovered by other independent attorneys without his co-operation. In Re Wilson, 12 Fed. 235—237. In that case it was held in accordance with an able opinion of Judge Brown that an attorney had no lien upon a judgment in one cause for services rendered in another and related one. His conclusion was thus stated: “After examination of the numerous authorities on this subject, English and American, I am satisfied, * * * that an attorney has no general lien upon an uncollected judgment for services in other suits, but only a particular lien for his costs and compensation in that particular cause.” See also Massachusetts & S. Constr. Co. v. Gill's Creek Twp. 48 Fed. 145-147; Foster v. Danforth, 59 Fed. 750, 751; Adams v. Kehlor Mill. Co. 38 Fed. 281, 282. In the case last cited a judgment had been obtained in a State court, and the judgment on which the lien was claimed had been recovered in a suit to enforce the former judgment. The facts presented a stronger case than the one at har. In the present case the Secretary had refused to perform the act of Congress, and without his favorable action the claim was uncollectable. Nearly two years afterwards independent counsel instituted the litigation which resulted in the judgment compelling payment. There was, therefore, no attorneys’ lien on which to found jurisdiction in equity.

The allegation of the insolvency of the executrix, and her intention to remove the fund from the jurisdiction upon its receipt, furnish no foundation for a creditors’ bill to enforce a simple contract. They were pertinent allegations in the bill for the purpose of obtaining the injunction prayed. It was not a creditors’ bill founded on a simple contract, invoking the interposition of equity under extraordinary conditions to prevent certain and irreparable injury, so as to bring it within some of the exceptional cases in which a creditors’ bill has been entertained [201]*201upon a simple contract unreduced to judgment. Had such been its character and avowed purpose, it would seem that the complainants were not without adequate remedy in another branch of the supreme court of the District. The will of <1. W. Parish had been probated in the supreme court of the District holding a special term as a probate court, and was still in administration. The sole power of the executrix to demand the payment and to institute the action to enforce it was derived from the letters testamentary granted to her on the probate of the will. The complainants could have applied for relief to that court which, under the ample power conferred by the statute, could have required the executrix to give additional and sufficient bond for the protection of creditors, or else have revoked her letters and thus prevented her collection of the judgment. D. C. Code, secs. 263—296 [31 Stat. at L.

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Bluebook (online)
39 App. D.C. 184, 1912 U.S. App. LEXIS 2210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parish-v-mcgowan-cadc-1912.