Sarman v. Goldwater, Taber and Hill

396 P.2d 847, 80 Nev. 536, 1964 Nev. LEXIS 202
CourtNevada Supreme Court
DecidedNovember 30, 1964
Docket4776
StatusPublished
Cited by8 cases

This text of 396 P.2d 847 (Sarman v. Goldwater, Taber and Hill) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sarman v. Goldwater, Taber and Hill, 396 P.2d 847, 80 Nev. 536, 1964 Nev. LEXIS 202 (Neb. 1964).

Opinion

OPINION

By the Court,

Thompson, J.:

The guardian appeals from a final order entered in a guardianship matter. She had discharged her attorneys and substituted another. The order in question *538 directed the requested substitution, fixed the fee due the displaced attorneys, and directed them to deliver their files and records to the guardian’s new counsel upon payment of the fee or giving appropriate security therefor. The substitution has been made. 1 Three issues are raised on this appeal: Whether the guardian is personally liable to her displaced attorneys for professional services rendered; whether the court in which the guardianship proceeding is pending has jurisdiction to hear evidence and determine the fee to be paid the displaced attorneys, or must such attorneys commence an independent suit for their compensation; whether a fee of $65,790 is a reasonable fee for the displaced attorneys in this case.

The client-attorney relationship between Lois Sarman, Guardian, and the firm of Goldwater, Taber and Hill, her attorneys, lasted for about 14 months. On September 20, 1963, the guardian, by letter, terminated that relationship, requested that her files be delivered to her newly selected counsel George Abbott, and that the displaced attorneys submit their statement for services rendered. The displaced firm responded by letter, advising the guardian: “You are hereby notified that Goldwater, Taber and Hill, Attorneys at Law, 206 North Virginia Street, Reno, Nevada, have a general or retaining lien on all of the files, records, documents in our possession by virtue of our professional relationship. We will be pleased to comply with your request that we withdraw as your attorneys in the guardianship, substitute George W. Abbott, Esq., First National Bank Building, Minden, Nevada, and transfer all files, records and documents in our possession to him. Before doing so, however, we must insist on payment in full of all fees, costs, and disbursements due us.” The law firm’s statement for services in the sum of $65,790 was shortly thereafter submitted to the guardian. Following this exchange of correspondence the guardian, through her new counsel, by motion, sought to compel her former *539 counsel to deliver the files and records. The court designated a hearing date, at which time that motion was heard and evidence concerning the value of the displaced attorneys’ services was received. The guardian did not object to the power of the lower court to hear evidence and determine the fee due her displaced attorneys, but consented to the procedure outlined by the court. It is within this context that we turn to discuss the first and second issues of this appeal.

A guardian who employs counsel in behalf of the ward’s estate is personally obligated to pay for counsel’s services. The attorney-client relationship is between the guardian and counsel. It is not between the ward and counsel. The attorney’s fee is an expense incurred by the guardian in the performance of her duties for which she is personally liable. In re Boyd’s Guardianship, 37 N.M. 83, 18 P.2d 658. The expense is authorized by statute (NRS 159.570) and the guardian will, in turn, be entitled to a credit therefor in her accounting if the services of counsel were necessary and the charges reasonable. 2 Thus, in most cases, the ward’s estate will, if able, ultimately pay for counsel’s services. This probability, however, does not serve to erase the guardian’s personal liability to counsel. Accordingly, we find no validity to the guardian’s contention here that it was improper for the lower court to enter a personal judgment against her for the fee of displaced counsel.

The guardian’s contention that the lower court lacked power or jurisdiction to fix the fee of the displaced counsel and enter a binding judgment in the guardianship proceeding is equally unsound. Whatever the law may be in other jurisdictions to which she has referred us, it is settled beyond doubt in Nevada. Whether the fee should be determined in the proceeding in which the attorneys have rendered their services, or resort had to an independent suit, poses a problem of choice rather *540 than one of jurisdiction. In Earl v. Las Vegas Auto Parts, 73 Nev. 58, 307 P.2d 781, the amount of the fee due the displaced attorney was fixed in the case in which his services were performed, but was collected by independent suit, the court concluding that the amount so determined was res judicata in the subsequent suit. Also in Morse v. District Court, 65 Nev. 275, 195 P.2d 199, the attorneys filed an independent suit. On the other hand, in Gordon v. Stewart, 74 Nev. 115, 324 P.2d 234, it was squarely held that power exists to enter a binding judgment for the displaced attorneys’ fee in the pending matter without resorting to an independent suit. The Earl case involved, inter alia, the attorney’s statutory charging lien (NRS 18.010) against the consent judgment obtained. The Morse case dealt with the displaced attorney’s common law retaining lien, while the Gordon case involved neither. There the withdrawing attorneys simply asked the court to fix the compensation due them for services performed prior to their withdrawal. The attorney’s right to be paid is not based upon, or limited to, his lien. It is based upon a contract, express or implied. The lien is but security for his right. Gordon v. Stewart, supra. Thus, the power of the court to act is quite unrelated to the nature of the lien sought to be enforced. 3 For example, in the instant matter, the court below had the power to fix the fee due the displaced counsel whether they chose to assert their retaining lien or not.

Basically, the jurisdiction of the lower court rests upon constitutional provision. Art. 6, § 6 of the Nevada Constitution invests the district court with original jurisdiction in all cases relating to the persons and estates of minors and insane persons. The guardianship at hand concerns an incompetent adult. To implement the organic law, the legislature passed NRS 3.210 which provides, in part, that the district courts shall have *541

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Bluebook (online)
396 P.2d 847, 80 Nev. 536, 1964 Nev. LEXIS 202, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sarman-v-goldwater-taber-and-hill-nev-1964.