Production Credit Ass'n of St. Louis v. Bertram

789 S.W.2d 173, 1990 Mo. App. LEXIS 600, 1990 WL 44344
CourtMissouri Court of Appeals
DecidedApril 17, 1990
DocketNo. 57054
StatusPublished
Cited by2 cases

This text of 789 S.W.2d 173 (Production Credit Ass'n of St. Louis v. Bertram) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Production Credit Ass'n of St. Louis v. Bertram, 789 S.W.2d 173, 1990 Mo. App. LEXIS 600, 1990 WL 44344 (Mo. Ct. App. 1990).

Opinion

KAROHL, Judge.

This case began when Production Credit Association of St. Louis (PCA) sued defendant Garland H. Bertram to recover money previously loaned to Bertram. The loan was made in exchange for a note and deed of trust on Bertram’s real estate. All or part of the real estate was condemned in the Federal Court as part of the Cannon Dam Project. Bertram gave PCA additional security by a written assignment of his right to receive anticipated compensation in the condemnation proceeding. The present suit against Bertram was to enforce the assignment. Bertram retained attorney Thomas Burkemper and a St. Louis law firm to represent him in the condemnation case. PCA also sued Burkemper to enforce on “oral agreement” with Bertram and his attorney to forebear from foreclosing the deed of trust pending receipt of the condemnation proceeds.

Burkemper filed an answer, a cross-claim against defendant Bertram and a counterclaim against plaintiff PCA. The answer alleged the assignment occurred before Burkemper represented Bertram; that Bertram told an attorney for PCA the proceeds of the condemnation would be paid to PCA; that PCA and Bertram, through a new attorney, had both demanded a check for $61,484.43, payable to Bertram, which St. Louis co-counsel had mailed to Burkemper; and, that the petition failed to state a cause of action against Burkemper.

The cross-claim and counterclaim admitted Burkemper was co-counsel with a St. Louis law firm on behalf of Bertram. It alleged Burkemper had received a check [175]*175for $61,848.43 payable to Garland Bertram only. Both PCA and Bertram claimed a right to have the check. Burkemper claimed no interest in the check and requested an order of interpleader and discharge. Burkemper also requested a $2,000 attorney’s fee for this case.

PCA accepted the interpleader and filed a reply. Defendant Bertram resisted it on the ground no “fund” was before the court because the money was in the bank account of the St. Louis law firm and not within the control of the court. The court ordered PCA and Bertram to interplead their claims and discharged Burkemper.

Ultimately, PCA and Bertram settled their dispute and PCA dismissed it’s petition. The settlement was approved by the trial court. It allowed PCA to have the $61,848.43 check. However, by agreement a new check in the amount of $3500, payable to Bertram, written on the account of the St. Louis law firm was deposited with the clerk of the court.

Bertram now appeals an order granting defendant Thomas Burkemper an attorney’s fee of $3300 for the interpleader. He also appeals an order that Garland Bertram endorse the $3500 check held by the clerk so that the clerk could satisfy the award of attorney’s fees and costs.

“It is well settled that in a case where interpleader properly lies, the stakeholder is entitled to reasonable attorney’s fees as part of his costs.” Northwestern National Insurance Company v. Mildenberger, 359 S.W.2d 380, 387 (Mo.App.1962). Section 507.060 RSMo 1986 and counterpart Rule 52.07 provide for interpleader if the stakeholder:

is or may be exposed to double or multiple liability. It is not ground for objection to the joinder that the claims of the several claimants or the titles on which their claims depend do not have a common origin or are not identical but are adverse to and independent of one another, or that the [stakeholder] avers that he is not liable in whole or in part to any or all of the claimants. A defendant exposed to similar liability may obtain such interpleader by way of cross-claim or counterclaim.

The averments of defendant Thomas Burk-emper in the cross-claim, counterclaim satisfy the requirements of § 507.060 and Rule 52.07. He alleged possession of a check payable to his client, defendant Garland Bertram. He also alleged the existence of an assignment, by Bertram of the funds represented by the check to PCA. In connection with representing Bertram in defense of a number of claims Burkemper, as attorney, participated in requesting a delay of foreclosure of PCA’s note and deed of trust on the faith of compliance with the assignment. He was exposed to a claim by PCA. Although he denied any personal liability to PCA the possibility of competing claims of PCA and Bertram satisfied the requirements of the statute and rule.

Bertram argues the court lacks subject matter jurisdiction for interpleader for failure of the court to have “the actual or constructive possession of the fund allegedly interpled.” Bertram maintained that the fund was a deposit in the bank account of the St. Louis law firm and the check payable to Bertram drawn by the law firm on that account was not a “fund” sufficient to support interpleader jurisdiction. This position was rejected by the Missouri Supreme Court in Plaza Express Company v. Galloway, 365 Mo. 166, 280 S.W.2d 17, 20-21 (1955) where it said:

As we read the plain language of this statute, there are only two vital facts which must appear from the averments in plaintiffs’ statement of their claim. These are that persons have claims against plaintiffs, and that those claims are of such nature that plaintiffs may be exposed to ‘double liability’ ... the other pertinent parts of the statute eliminate the necessity for the existence of facts and conditions, the existence of which was formerly necessary....

The court expressly held “the language of the statute negates any idea that a fund or other property need be deposited in court or that any offer to do so need be made.” Id. 280 S.W.2d at 23.

[176]*176Bertram also argues the court erred by awarding attorney’s fees “for the reason that it takes appellant’s property for the private use of respondent, without an assessment of liability in violation of Art. I § 28, Constitution of Missouri.” Defendant Burkemper requested an interpleader fee in the cross-claim against Bertram. He also requested a fee in a motion for fees. The court considered the motion, expressly determined that the sum of $3300 was a reasonable attorney’s fee and entered the judgment. We find no violation of the provisions of the Missouri Constitution where the court awarded a fee to the stakeholder as part of his costs. Northwestern National Insurance Company v. Mildenberger, 359 S.W.2d 380, 387 (Mo.App.1962).

Bertram next argues that the court erred in ordering Bertram to sign the check on deposit with the clerk of the court because that relief was not requested by any party. It is true that no one requested such order. It is also true that the inter-pleader proceeding involves two successive litigations, the first equitable and the second legal. Philadelphia Life Ins. Co. v. Moffat, 783 S.W.2d 133, 135 (Mo.App.1989). The determination that interpleader is proper and discharge of the stakeholder is equitable in nature. The contest between the claimants is controlled by rules regarding suits at law. The award of attorney’s fees in the present case was part of the equitable first stage wherein the court determined that interpleader was proper, discharged defendant Burkemper from liability to either party and awarded fees.

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Cite This Page — Counsel Stack

Bluebook (online)
789 S.W.2d 173, 1990 Mo. App. LEXIS 600, 1990 WL 44344, Counsel Stack Legal Research, https://law.counselstack.com/opinion/production-credit-assn-of-st-louis-v-bertram-moctapp-1990.