Porter v. Parmly

7 Jones & S. 219
The Superior Court of New York City·Decided April 5, 1875·Published

Opinion

By the Court.—Monell, Ch. J.

The only question we are asked to examine in this case, is as to the power of the court, upon a summary application to determine a disputed question of fact between an attorney and Ms client, as to the existence of a special agreement, fixing the rate of the former’s compensation for prosecuting an action.

It is conceded that if the power exists, the mode adopted in this case is without objection. Upon a motion, properly before the court, it may, to inform its conscience, direct a reference to take the proofs (Marshall v. Meech, 51 N. Y. 140).

No exception to the referee’s report is urged ; and Ms finding that no agreement fixing the attorney’s compensation existed, made it competent for him under the order, to ascertain the reasonable value; and his report, confirmed by the court, is conclusive.

• But the objection was taken at each successive step in the proceeding, that the court, upon a motion, could not try the disputed fact of the existence of the alleged special agreement. And it necessarily follows that, if the power does not exist, the order of reference and all the proceedings under it, as well as the order appealed from, was erroneous.

The power to proceed summarily to compel an attorney to pay over the money of his client, is not questioned in cases wdiere there is no dispute as to the rate or value of the attorney’s services, or where the rate is fixed by law, or the value can be determined upon a quantum, meruit. In such cases the court will ascer [232]*232tain what is a suitable compensation, and direct the balance of the money in the hands of the attorney, to be paid to the client.

And those are the ordinary cases, where in England and this country, the courts proceed upon the principle that attorneys, being officers of the court, should be brought summarily within its authority, for any misconduct, violation of duty, or other wrongful proceeding towards bis client.

But it is claimed that the present case differs from those in which the court has usually entertained the proceeding, in this, that the attorney’s compensation was fixed by an agreement made between himself and his client, and that the existence of such agreement is in dispute.

That issue, it is insisted, the court can not try on a motion.

The validity of the agreement which formerly would have been void (Merritt v. Lambert, 10 Paige, 352), is now established by law.

The code (§ 303) provides that the measure of an attorney’s compensation may be the subject of an agreement between himself and his client; and such agreements, where there is no charge of great hardship, extortion or fraud (Barry v. Whitney, 3 Sandf. 696), it is the duty of the court to recognize and enforce.

There is no restriction as to the nature or extent of the agreement, and, therefore, as in this case, the amount of compensation maybe made contingent upon success in the action (Fitch v. Gardner, 2 Keyes, 516; Hitchings v. Van Brunt, 38 N. Y. 335).

The lien of an attorney which formerly was limited to his taxable costs and counsel fees, is now extended to any sum which may be agreed upon, as the measure of his compensation (Rooney v. Second Ave. R. R. Co. 18 N. Y. 368; Marshall v. Meech., ubi sup.).

The radical change in the law, by which the taxable [233]*233costs, which formerly belonged to the attorney, are now given to the party, and the right now to fix by agreement the attorney’s compensation, it is insisted, presents the question of the power of the court over attorneys in a new aspect and relieves it of the force of those cases where the power has ordinarily been applied.

The measure of the attorney’s compensation in this case, he says, was fixed by agreement, and the agreement is denied by the plaintiff. Upon that issue the attorney must succeed, or probably fail entirely to recover any compensation whatever. For having alleged a special contract, it is at least doubtful, if having failed to establish it, he then can recover upon a quantum, meruit.

The only issue in this case is as to the special agreement. The attorney does not claim otherwise, and he insists he has the right of having that issue tried by a jury.

Under recent decisions (Townsend v. Hendricks, 40 How. Pr. 143; Kane v. Delano, 11 Abb. N. S. 29; Welsh v. Darrah, 52 N. Y. 590; Evans v Kalbfleisch, 36 Sup’r Ct. 450; Ross v. Combes, 37 Id. 289), an action which merely involves the existence of an agreement is not referable. The agreement, being established the attorney would be entitled to recover the stipulated sum, and no account, long or otherwise, would require to be examined. And such an action the parties have the right to insist should be tried by a jury.

The effect of the constitutional provision “ that the trial by jury in all cases, in which it has been heretofore used, shall remain inviolate” (Art. 1, § 2), was fally considered in Townsend v. Hendricks, supra, and in Kane v. Delano, supra, where it was held that the right of trial by jury continues in all common-law cases, to which there is but one exception, namely : an action on contract requiring the examination of a long account.

[234]*234In an action by Mr. Townsend to recover his compensation, or in an action by the plaintiff to recover the money collected by the former, either party would have the right to insist that the.question in dispute should be submitted to a jury. If such agreement constituted the whole cause of action or defense, the court, under the cases cited, could not make a compulsory reference, but would be obliged to send it to a jury."

And that absolute right of trial by jury of a cause of action or defense, lies at the foundation of the objection in this case.

This is an initial proceeding as for a contempt in civil actions under the statute (2 R. S. 534), and it' the order requiring the payment of the money was lawfully made, the court can lawfully punish the attorney for his disobedience (Sub. 1 and § 20). But the statute-restricts the power to punish, to cases of disobedience of “any lawful order” made by the court, and does, not enlarge its common-law powers.

As yet, the attorney has not been adjudged in contempt. The order requiring him to pay has been suspended by the appeal, and he continues to make his objection which involves the “lawfulness” of the order. So that the statute furnishes no aid in determining the question of power in the court to make the order, for the disobedience of which it is sought under the statute to punish the attorney, but leaves the question to be determined upon reasons which are independent of the statute.

A motion to compel an attorney to pay over the money of his client is addressed to the equitable powers of the court (Sexton v. Wyckoff, 6 Paige, 182), and like other motions for cumulative relief, is made to the favor and conscience of the court (Ackerman v. Ackerman, 14 Abb. 229). And as equitable pow ersare discretionary powers, the court may or may not in its discretion, entertain the motion. But having [235]

Free access — add to your briefcase to read the full text and ask questions with AI

Porter v. Parmly, 7 Jones & S. 219 (N.Y. Super. Ct. 1875).

7 Jones & S. 219 (Porter v. Parmly) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Hudson v. . Caryl
44 N.Y. 553 (New York Court of Appeals, 1871)
Hitchings v. . Van Brunt
38 N.Y. 335 (New York Court of Appeals, 1868)
Rooney v. . Second Avenue Railroad Company
18 N.Y. 368 (New York Court of Appeals, 1858)
Barlow v. . Scott
24 N.Y. 40 (New York Court of Appeals, 1861)
Bowling Green Savings Bank v. . Todd
52 N.Y. 489 (New York Court of Appeals, 1873)
Marshall v. . Meech
51 N.Y. 140 (New York Court of Appeals, 1872)
Welsh v. . Darragh
52 N.Y. 590 (New York Court of Appeals, 1873)
Haight v. Holcomb
7 Abb. Pr. 210 (New York Supreme Court, 1858)
Fox v. Fox
24 How. Pr. 409 (New York Supreme Court, 1863)
Townsend v. Hendricks
40 How. Pr. 143 (New York Court of Appeals, 1870)
In re Bleakley
5 Paige Ch. 311 (New York Court of Chancery, 1835)
Saxton v. Wyckoff
6 Paige Ch. 182 (New York Court of Chancery, 1836)
Merritt v. Lambert
10 Paige Ch. 352 (New York Court of Chancery, 1843)
Fitch v. Gardenier
2 Keyes 516 (New York Court of Appeals, 1866)
Barry v. Whitney & Tucker
3 Sandf. 696 (The Superior Court of New York City, 1851)