Ryan v. Martin

18 Wis. 672
CourtWisconsin Supreme Court
DecidedJune 15, 1864
StatusPublished
Cited by4 cases

This text of 18 Wis. 672 (Ryan v. Martin) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ryan v. Martin, 18 Wis. 672 (Wis. 1864).

Opinion

By the Court,

Cole, J.

When ■ this case was before us on a former appeal, we decided that the agreement set forth in the complaint was not champertous under our statute ; that so far as the counsel retained by it were concerned, it was not joint but several in its nature, so that a discharge of one of the counsel without cause from the control of the action was a breach of the contract by the defendant, for which he was liable thereon to the counsel discharged; and that the fifteen thousand dollars named in the agreement, which the defendant [694]*694covenanted to pay each one of his counsel in case he settled, compromised, discontinued or took his suit out of court, or from the control of his counsel, was not a penalty, but a stipulated sum agreed to be paid in lieu of damages of an uncer. tain and doubtful character. It is not proposed to enter at this time into a discussion of the points decided on the former appeal. We are fully satisfied with the conclusions which have been already announced upon the questions submitted, and if we were not, clearly those points are not now open for review. For, so far as this cause is concerned, they have become res adjudicatce, and could not now be reversed or departed from without a violation of well established principles of law.

We thought it best to make these observations for the purpose of relieving ourselves from the necessity of particularly considering some questions discussed on the argument by the counsel for the appellant, but which, for the reason just stated, cannot arise on this appeal.

Because the relation of solicitor and client existed when the contract sued on was entered into, it is claimed that the court should scrutinize its stipulations with the utmost rigor, and if there is anything harsh or inequitable in the contract, or suspicious in the time and manner of its execution, should refuse to sustain an action upon it. Any contract with or security given by the client to the solicitor, it is said, is regarded with suspicion, and when advantageous to the solicitor, the presumption is that the transaction is unfair, and the onus of proving its fairness is upon the solicitor. Applying this wholesome rule of law to the case, there is no ground for holding that the contract should be avoided because the responden t abused his relation as counsel or solicitor, and obtained an undue advantage in consequence of the confidence reposed in him by his client. There is nothing about the contract when intrinsically considered, or in the circumstances attending'its execution, which will justify the inference that the respondent used any influence to induce his client to enter into this [695]*695contract, or that be surprised or overreached biin in any way by superior diligence or ability. On tbe contrary, it does most satisfactorily appear in the case, that tbe respondent was not over anxious to enter into tbe contract in tbe first instance, and, even if we assume, wbat is not very clearly shown by tbe evidence, that he drew tbe contract, still his client bad full opportunity to consider it in all its bearings before be executed it. That client was a man of intelligence and discretion, a member of tbe bar of a neighboring state, and fully qualified to guard bis own interests. He bad commenced a litigation which, it was clear to all, would be tedious, difficult and expensive. The amount of bis recovery, even if successful, was a matter of doubt and uncertainty. He was poor and unable to take tbe whole risk and hazard of the litigation. Ho therefore thought best to enter into a contract to pay his counsel a given sum only in tbe event he was successful in the litigation, and in case ten per cent, on the value recovered should exceed the sum of ten thousand dollars, then he was to pay each counsel such additional sum, as with five thousand dollars to be paid each should make an amount equal to ten per cent, of the value recovered. This contract for contingent compensation was deliberately entered into by tbe parties, and we are unable to say, all things considered, that it was not most advantageous to the appellant. True, he agreed, in case he took his cause from the control of either counsel, to pay them the sum of fifteen thousand dollars each.’ It is said that this amount is unreasonable, and out of all proportion to the value of the services rendered. Assuming, for the purposes of the argument, that the appellant entered into an improvident stipulation upon this point, yet certainly he could save himself harmless upon it by simply keeping, in good faith, the contract he had made. He was under no obligation — it does not appear that he was under any necessity — to discharge the respondent from his retainer. Whether the respondent waived or lost any right growing out of the breach of the contract, in [696]*696consequence of the advice he gave his client when Mr. Carpenter refused to hold any further consultation with him out of 'court in regard to the cause they were prosecuting, will be considered in another part of this opinion. We are now considering whether there is anything in the contract itself, or in the circumstances under which it was made, which shows that the respondent abused his relation to secure an undue advantage-over his client. And we must say that we see nothing whatever in the transaction which shows that a court should refuse to- enforce any condition of the contract upon that ground.

It is further claimed that the evidence fails to show that the suit has been taken from the control of the respondent as counsel, and it is argued that his relation to the cause could only be terminated by an order of court, unless Mr. Ryan saw fit to withdraw from it of his own accord. Whether, indeed, as a general rule, an order of court is necessary to terminate the relation of an attorney, solicitor or counsel to a cause pending in court, we shall not now stop to enquire, since we are fully satisfied that the suit was taken from the control of the respondent, and he discharged from employment therein, within the spirit and meaning of the contract. In the letter of October 27th, 1861, which the appellant addressed the respondent, the suit is taken from the control of the latter, in language as unequivocal as it well can be. For he says in that letter, after speaking of his inability to change the purpose of Mr. Carpenter to have no further-consultation with the respondent in regard to -the suit out of court; of- the advice which the respondent had-given him in view of this position of Mr. Carpenter ; of the importance of the suit, to him, and the familiarity of Mr. Carpenter with the facts and details of it: “I am forced from your instructions so faithfully and disinterestedly given, and from the stand taken by Mr. Carpenter, to ask you to -take no further part in the case, but to leave it to -me and Mr. Carpenter.” This distinct and pointed request that [697]*697the respondent take no farther part in the conduct of the cause, was certainly taking it from his control, if it was in the power of the appellant to accomplish that object. It must be construed as having the effect of terminating the respondent’s connection with the cause, within the meaning of the contract, and of absolutely discharging him from his retainer therein.

It is further insisted' that the breach of the contract was not proven as alleged; that the complaint averred that the suit was taken from the control of the respondent and, Carpenter (following the precise language of the contract), while the proof showed that it was only taken from the control of the respondent.

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Bluebook (online)
18 Wis. 672, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ryan-v-martin-wis-1864.