Ridge v. Healy

251 F. 798, 164 C.C.A. 32, 1918 U.S. App. LEXIS 1756
CourtCourt of Appeals for the Eighth Circuit
DecidedMay 18, 1918
DocketNo. 4904
StatusPublished
Cited by13 cases

This text of 251 F. 798 (Ridge v. Healy) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ridge v. Healy, 251 F. 798, 164 C.C.A. 32, 1918 U.S. App. LEXIS 1756 (8th Cir. 1918).

Opinion

BOOTH, District Judge.

This is a suit in equity to recover on a contract for services as an attorney; also to impress a lien for the amount claimed upon certain property belonging to the defendant, and for a foreclosure of the lien. The contract was originally made between appellee Howard Ferris, of Cincinnati, Ohio, and appellant, Margaret D. C. Ridge, of Kansas City, Mo. It was assigned by Ferris 'to his firm, who are plaintiffs in the suit. Among the defenses set up ■were the following: That the contract was unfair and unconscionable, in view of the relationship existing between the parties at the time it was made, and in view of the circumstances under which it was made; that the amount claimed was unreasonable, in view of the services rendered; that the services rendered were not properly nor fully performed.

Trial in the court below resulted in a decree for a money judgment in favor of plaintiffs, the establishing of a lien to secure the same upon certain real estate of defendant, and a foreclosure of the lien. Upon this appeal among the errors assigned and relied upon by the appel-' lant are the following: That the evidence shows that the contract, order, and note upon which the decree and judgment were founded were procured by fraud, misrepresentations, and coercion, and were void; that the services rendered by Ferris were without value to the defendant, and the fee as fixed by the contract, order, and note was exorbitant, and procured fro'm tire defendant while the relationship of attorney and client existed between Ferris and the defendant; that the fraud shown in the evidence on the part of Ferris should have barred the complainants from a court of equity and denied them equitable relief. These several assignments of error may properly be considered together, and in considering them it becomes necessary to examine somewhat at length the facts disclosed by the evidence.

The defendant, Mrs. Ridge, was the second wife of Dr. Isaac M. Ridge, of Kansas City. He died May 7, 1907. He left property, real and personal, of the approximate value of $1,125,000 over and above the mortgage liens thereon. There were two mortgages — one for $350,000, covering a portion of the property; the other for $75,000, covering another portion of the property, and covering also, as a second mortgage, the property covered by the preceding mortgage. Dr. Ridge left a will, dated June 14, 1900, by which he bequeathed a small amount to each of three children by a former wife, and the remainder [801]*801of his estate to the defendant, Mrs. Ridge. lie had made two prior wills, which were in existence. A will contest was fded by the three children, seeking to set aside the last will, on the alleged ground that the testator was mentally incompetent at the time of making the will, and also on the ground that he had been unduly influenced by his wife in the making of the will. Mrs. Ridge’s attorneys were-the firm of Rathrop, Morrow, Fox & Moore and Mr. C. O. Tichenor, all of Kansas City. The will contest was still pending, and several offers of compromise had been made between the parties, when plaintiff Ferris entered the case. His entry was brought about largely by the efforts of a mutual friend of Mrs. Ridge and himself, named Smith, of Cincinnati. A letter, dated November 26, 1907, had been written by Smith, who was then temporarily in Kansas City, to Ferris, outlining the situation. This letter was written after consultation by Smith with Mrs. Ridge and Mr. Geo. W. Curtiss, brother-in-law of Mrs. Ridge. Correspondence followed between plaintiff Ferris and Mr. Curtiss or Mrs. Ridge, and in March, 1908, Ferris made his first visit to Kansas City to become better acquainted with the case.

The written contract upon which the suit is brought was entered into December 10, 1908. Ferris had been acting as attorney for Mrs. Ridge for a number of months prior to this date. Just when the relationship of attorney and client began is uncertain from the evidence. Ferris in his testimony is not sure whether it was in March or April, 1908. The exact date is not of vital importance. During the period from March or April, 1908, to December, 1908, Ferris had made several visits to Kansas City, had become acquainted with the property involved, its situation and condition, and the incumbrances thereon, had become acquainted with the claims of the contesting parties, and had conferences with the attorneys of Mrs. Ridge who were in her employ prior to his coming. H e knew that propositions of settlement had been made, knew what these propositions were, knew that the attorneys for Mrs. Ridge favored a settlement rather than litigation, and knew-that Mrs. Ridge herself had refused offers of compromise made to her. He himself had taken part in negotiations touching one compromise, known as the dO per cent.-60 per cent, compromise. This offer had been rejected by Mrs. Ridge upon his advice, or at least with his approval. He had looked up questions of law involved in the controversy, and the questions of fact, and the evidence to support the same, to a considerable extent. He knew of the existence of the two prior wills, and was acquainted with the statutory provisions of the state of Missouri in regard to dower. He had assumed the active control in the management of the case, and had carried on an extensive correspondence with Mrs. Ridge in regard to the contest, and the outlook for the same.

The evidence also shows that by the end of this period Mrs. Ridge looked upon Ferris as her most trusted, if not her sole, legal adviser, and placed in him her implicit confidence. This condition had been brought about, in part at least, by the friendly statements of Mr. Smith by extended social intercourse with Ferris, and by the reiterated ex[802]*802pressions by him of self-praise, accompanied by derogatory remarks as to associate counsel. During this period the position of Rerris was distinctly adverse to a compromise settlement. This is shown conclusively by his letters to Mrs. Ridge and Mr. Curtiss introduced in evidence. 'January 3, 1908, he writes to Curtiss, who was closely in touch with Mrs. Ridge and was assisting and advising with her in the case:

“I have gained from you the information that Mrs. Ridge would not entertain any proposition of any character at this time, except one for the dismissal of the suit at their costs. This should be her attitude, and fioubtless is. I would be very firm, in the position thus taken.”

May 18, 1908, he writes to the same party:

“I assume the fact to be that Morrow has urged Mrs. R. to compromise and has used the situation as a club for that purpose. This I expected. * * * I knew that Morrow was not in sympathy with any plan, except one that came as tlie result of a compromise. * * * Mr. Morrow does not seem anxious to have the matter of the will contest heard, and gave me no assurance when it would be reached. * * * He does not intend to fight. He wants to settle.”

May 29, 1908, he writes to Mrs. Ridge:

“Do nothing in the matter of compromise or adjustment until I come to Kansas City. * * * I do not need to say that I still entertain the conviction that the contestants will not be fair enough to make a reasonable proposition, and therefore I shall forget all questions of settlement and give my entire attention to the details looking toward a trial. * * * You deserve victory, and for the life of me I cannot see why you are not due to win.”

August 27, 1908, he writes to Mrs. Ridge as follows:

“I do not think now at all about questions of compromise.

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Bluebook (online)
251 F. 798, 164 C.C.A. 32, 1918 U.S. App. LEXIS 1756, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ridge-v-healy-ca8-1918.