Saulsbury v. Lady Ensley Coal, Iron & Railroad

110 Ala. 585
CourtSupreme Court of Alabama
DecidedNovember 15, 1895
StatusPublished
Cited by4 cases

This text of 110 Ala. 585 (Saulsbury v. Lady Ensley Coal, Iron & Railroad) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Saulsbury v. Lady Ensley Coal, Iron & Railroad, 110 Ala. 585 (Ala. 1895).

Opinion

HEAD, J.

In the case of Horse Creek Coal & Coke Company v. Lady Ensley Coal, Iron & Railroad Company, the Central Trust Company of New York, ct al., pending in the chancery court of Walker county, involving the administration and disposion of the property of the said Lady Ensley Company, the appellant, W. K. Saulsbury, was, on application of the complainant for the appointment of a receiver of such property, duly appointed as such on the 19th day of April, 1893, and he qualified and entered upon the duties of his office. Pending an appeal from the register’s order appointing him, towit, on the 4th day of May, 1893, he filed in the cause his resignation of the office. On May 8, 1893, the chancellor, bv a decretal order duly enrolled, accepted the resignation, to take effect upon the qualification of his successors therein appointed, and ordered him to turn over to such successors, A. G. Smith and George L. Morris, when qualified, all the property of the said Lady Ensley Coal, Iron & Railroad Company, and to [593]*593file Ms accounts for a final settlement. TMs order was obeyed. Smith and Morris qualified, and received from Saulsbury immediate possession of all the property. Saulsbury filed his accounts for a final settlement of his receivership, and thereupon the chancellor rendered a decretal order directing the register to audit the same and report, and, further, to ascertain and report a reasonable allowance to be made to the outgoing receiver for his services, and also what sums should be allowed for reasonable solicitor’s fees incurred by him in the administration of the trust. This order was based upon a written application by Saulsbury, filed in the cause, showing compliance with the previous order in reference to delivery of the property to his successors, and the filing of the accounts for settlement, and alleging that, during his receivership, he operated the mines and furnaces, and carried on all the business of said company, and that in conducting the same, he required, and secured by employment, the assistance and advice of competent solicitors, and that neither the value of his own services nor of his solicitors had been paid. The petition prayed that the accounts of his receivership be audited and settled, and that reasonable compensation for his own and his solicitors’ services be ascertained and allowed. His account and vouchers, which were subsequently reported and adjudged correct, showed that, during his term of official service, he received, in cash, at the four several offices of the company, viz., Birmingham, Horse Creek, Russellville, and Sheffield, the aggregate sum of $24,452.22, and disbursed $22,704.90, leaving a cash balance in his hands of $1,747.32. These disbursements included nothing for his own or his solicitors’ services; so that, divested of the possession and control of the property of the company by its delivery to his successors, under the order of the chancellor, for the continued administration of the trust,there remained nothing capable of being applied by him to the payment of his own and solicitors’ services except the said balance in his hands of $1,747.32.'The register reported an allowance of $2,500 for the services of the receiver; $200 for his solicitor, E. H. Cabaniss, for a special service, and $1,050 for his general counsel, John J. Moore. There is no controversy as to either of these allowances, except the latter; and in respect of [594]*594that the chancellor ordered that, upon. J. J. Moore filing with the register an itemized statement, under oath, of the services he rendered as solicitor in the cause for the former receiver, showing the value of each and all of such services, the register should hold a reference, and ascertain and report what services were so rendered by said Moore, and the value of the same. The itemized account was filed, and the register reported allowances for Moore’s services aggregating $2,275.

It appears, from.the evidence, that the receiver voluntarily resigned, after serving 15 days, for the reason that he became tired of the trouble and annoyance of the office. We will not inquire whether a receiver, after accepting the appointment, may, as matter of right, renounce the office and its duties; for, however that may be, the court appointing him may sanction it, as was done in the present case. It does not appear that appellant was guilty of any malfeasance or improper discharge of duty which superinduced his resignation and its acceptance by the court. Under these circumstances, it is equitable that lie be protected, within the limit of just principles, against personal loss in respect to the expenses of his administration. In awarding him this protection, care should be taken that no burden be imposed upon the trust estate which ivas rendered inequitable by his-voluntary and premature termination of his office. The estate will not, by his act, be subjected, in his favor, to a double burden. As he was entitled to reasonable legal advice and assistance, so were his successors ; and lie can not ask allowance for the value of legal service which must needs have been secured and paid for by his successors. .When witnesses, therefore, fix the value of a general retainer for the whole administration, which was, as to the appellant, cut short, almost in its inception, by his voluntary resignation, they 'reckon upon an improper basis. It is not, in such case, a question of the value of such retainer, as between attorney and client. If the contract between them entitles the attorney to full compensation for the whole trust, the client assumes the personal burden and duty of its discharge, without reimbursement, when, by his own act, he deprives the estate of the benefit of the service. We can not, therefore, act upon the estimates of those witnesses who ignore these qualifying cond-i--[595]*595tions. The estimate, under the circumstances of the case, should be confined, in considering the value of the general retainer, to the reasonable value of the general legal advice and assistance actually rendered the appellant during his administration: and, indeed, if his resignation rendered necessary a duplication, by the successors, of any such service actually rendered by appellant’s counsel, and which would not have been incurred if appellant had continued in office, the value of the same should be excluded from appellant’s allowance. Again, as we attempted to make clear in Henry v. Henry, 103 Ala. 582, care must be taken to distinguish, between the ordinary duties, which the receiver is presumed to know how to perform as well as one skilled in the law, and those duties which require special legal skill.

The appellant was entitled to legal advice as to the' general nature and extent of the duties enjoined upon him by the order of his appointment, but it was not the province of an attorney to hunt up and take into possession the property which belonged to the estate. That was the receiver’s duty, and if he required aid in finding the property, he should have looked to the complainant, who was moving in the matter, and who procured his appointment, to furnish it. A lawyer could not have done it better. Any complication or obstacle arising, requiring legal advice or proceedings, in the reduction of the property to possession, would have justified the expense of an attorney. Nonesuch arose in this matter. At Sheffield, the officer in charge at first demurred, but readily yielded upon production of the receiver’s commission.

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Cite This Page — Counsel Stack

Bluebook (online)
110 Ala. 585, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saulsbury-v-lady-ensley-coal-iron-railroad-ala-1895.