Sattinger v. Golden State Glass Corp.

127 P.2d 653, 53 Cal. App. 2d 130, 1942 Cal. App. LEXIS 454
CourtCalifornia Court of Appeal
DecidedJune 30, 1942
DocketCiv. No. 12790
StatusPublished
Cited by1 cases

This text of 127 P.2d 653 (Sattinger v. Golden State Glass Corp.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sattinger v. Golden State Glass Corp., 127 P.2d 653, 53 Cal. App. 2d 130, 1942 Cal. App. LEXIS 454 (Cal. Ct. App. 1942).

Opinion

WOOD (Parker), J.

Plaintiff, an attorney at law, obtained judgment against defendant for $5,100 for legal services rendered. Defendant appeals and asserts that the judgment was erroneous for the reasons (1) there was no evidence to support the finding of employment of plaintiff by defendant, (2) the evidence as to estoppel was admitted without any pleading alleging the facts constituting the estoppel, and (3) the amount of the judgment was excessive.

An action was pending in the superior court at Los Angeles entitled “G. C. DeGarmo, Plaintiff, v. A. Goldman, N. E. Shenberg, and Golden State Glass Corporation, Defendants,” wherein the plaintiff therein as one of the directors of the corporation defendant was seeking to remove the two other directors, Shenberg and Goldman, and to recover damages from them in behalf of the corporation. A receiver pendente lite of said corporation had been appointed.

The plaintiff herein testified that on the day after the receiver was appointed he was called to the office of an attorney at which place defendants Shenberg and Goldman were present, and plaintiff asked how and when he would be paid in connection with his employment by and representation of the corporation in the then pending case; that the attorney said in the presence of Shenberg and Goldman that they had no money to pay him at that time but when the receivership was vacated in the trial court the corporation would pay him; that if it became necessary to appeal or obtain an [132]*132extraordinary writ he would he paid at the time the decision became final; the plaintiff also asked about payment for services in the trial of the ease and any work other than in the receivership matter, and the attorney said the corporation could not pay for that work at that time either but he would be paid from time to time; the attorney asked Shenberg and Goldman if they were agreeable to the matter as outlined to plaintiff and they nodded assent and one said he was “agreeable.”

Defendant Goldman testified that such conversation did not take place in his presence; that nothing was mentioned regarding compensation. On cross-examination he testified that he was discharged by the receiver, was out of the employment of the corporation for a year, but he was in such employment at the time of the trial at a salary of $350 a month; that he verified the petition for writs of prohibition and mandamus which plaintiff prepared and filed, which verification included a statement that “N. Shenberg . . . A. Goldman, secretary of the corporation, and as the only two directors of said corporation who are not plaintiffs in said action, employed petitioner, Oscar C. Sattinger, to represent said corporation . . . and to oppose said order to show cause and take all necessary steps . . . and discharge said receiver.” (The petition for writ of prohibition was to prevent the enforcement of orders made in appointing the receiver. The petition for writ of mandamus was to require the trial court to recognize plaintiff as attorney for the corporation.)

There were two plaintiffs, Mr. DeGarmo and Mr. Crane, in the action referred to, when the complaint was filed and when the trial court refused to recognize the plaintiff in the present action (Mr. Sattinger) as attorney for the corporation. It seems that one of the reasons plaintiff was not recognized by the trial court as such attorney was that two directors were plaintiffs and two were defendants and that since the two defendants did not constitute a majority of the directors they did not have authority to employ an attorney for the corporation. Later, Mr. Crane made a motion to be released as a party to the action upon the ground that he had been made a party without his knowledge or consent, and the motion was granted. (It appears that the stock which stood in his name was held by him as trustee for Mr. De Garmo.)

[133]*133Soon after plaintiff started to act as attorney for the corporation, Mr. DeGarmo, as president of the corporation, wrote a letter to plaintiff stating that the board of directors had not employed plaintiff, that Shenberg and Goldman had no authority to employ him, and that he had no right to represent the corporation.

Plaintiff testified further that, in connection with the receivership matter, he attended the various hearings in the superior court and the District Court of Appeal and prepared and presented the petition for said writs of prohibition and mandamus in the Supreme Court; that the writs were issued, the receivership was vacated and he was permitted to appear as attorney for the corporation; that he devoted twenty-eight days to the receivership phase of the case and that the reasonable value of his services in such matter was $5,000; that in connection with the main case he prepared a cross-complaint against plaintiff DeGarmo to recover fees and salary paid to DeGarmo by the corporation; that he devoted twelve days in the trial of the ease, and six partial days, about one-half of each day, in connection with the deposition of Mr. DeGarmo, and seven days in preparation of pleadings, findings, etc.; that the reasonable value of his services in the main ease was $2,100.

Mr. DeGarmo, an attorney at law, plaintiff in the case referred to, an owner of one-half of the voting stock and one-third of the capital stock of the corporation, testified that the services rendered by plaintiff Sattinger were of no value; that the reasons for such opinion were: that when the receiver was appointed the organization remained intact except Goldman was discharged; that before the receivership matter was determined finally the case had been tried on its merits, the receiver discharged and the assets turned over to DeGarmo as president; that Shenberg walked out (the judgment removed him); that as to the trial the corporation was not concerned, no relief was asked against it, only the removal of the two directors was sought; that attorneys other than Mr. Sattinger conducted the trial for the defense, except that plaintiff did ask leave to file the cross-complaint and there was some argument about it.

The corporation was a necessary party in said action (Civ. Code, § 310). The plaintiff in that action was president of the corporation and owned one-third of the capital stock of the corporation. The defendants, Shenberg and Goldman, [134]*134were vice-president and secretary, respectively; each owned one-third of the capital stock and they were the actual operators of the business.

The finding of the trial court in the action now before us that “the plaintiff and defendant entered into an oral contract with N. E. Shenberg and A. Goldman acting for the said defendant, . . . whereby defendant employed the plaintiff as its attorney to represent it,” is supported substantially by the evidence, as shown by the evidence hereinabove referred to concerning the conversation relative to plaintiff’s services and compensation. Although Goldman said he was not present, the trial court found to the contrary.

Under the circumstances here presented Shenberg and Goldman had authority to employ ah attorney in behalf of the corporation. (Golden State Glass Corporation v. Superior Court, (1939) 13 Cal. (2d) 384, 396 [90 P. (2d) 75].) In the case just cited the defendant corporation herein, the plaintiff herein, Shenberg and Goldman were petitioners in the Supreme Court for a writ of mandamus to require the superior court to recognize the plaintiff herein as attorney for said corporation in the action concerning which plaintiff is now suing for attorney’s fees.

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Bluebook (online)
127 P.2d 653, 53 Cal. App. 2d 130, 1942 Cal. App. LEXIS 454, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sattinger-v-golden-state-glass-corp-calctapp-1942.