Saunders v. Guinn

1 S.W.2d 363
CourtCourt of Appeals of Texas
DecidedNovember 4, 1927
DocketNo. 346.
StatusPublished
Cited by5 cases

This text of 1 S.W.2d 363 (Saunders v. Guinn) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Saunders v. Guinn, 1 S.W.2d 363 (Tex. Ct. App. 1927).

Opinion

LESLIE, J.

In this cause Mrs. P. IC Guinn, individually and as guardian of her minor children, sued to recover of Will R. Saunders, attorney, certain sums of money alleged to have been collected and retained by him in excess of a stipulated compensation she agreed to pay him for legal services. She is the surviving wife of Charles T. Guinn, who came to his death while employed by a company carrying insurance in the Texas Indemnity Insurance Company. At the time she contracted with the appellant, Saunders, to procure for her and her minor children a lump sum settlement of this insurance, she was then receiving individually, and as guardian, monthly compensation from the company.- As a result of negotiations between her and Mr. Saunders they entered into the following contract:

“The State of Texas, County of Stephens.

“I, Mrs. P. K. Guinn, of the county of Stephens, state of Texas, wife of C. T. Guinn, deceased, who received an injury while in the employ of Magnolia Petroleum Company, on or about the 4th day of May, A. D. 1925, which said employer carried compensation insurance with Texas Indemnity Insurance Company, on account of which I claim to have a claim for compensation insurance against the said Texas Indemnity Insurance Company.

“And I desire to employ Will R. Saunders, an attorney of Breckenridge, Tex., to represent me in my said claim for compensation, and I have and do by these presents constitute and appoint the said Will R. Saunders my true and lawful attorney at law and fact for the purpose of collecting my said compensation insurance against whatsoever parties as may be liable therefor, and I authorize and empower the said Will R. Saunders to file and sign for me and in my name and stead any and all papers, instruments, vouchers, releases, pleadings, or documents of any kind or character that may be and become necessary in the premises, hereby ratifying each and every act of the said Will R. Saunders to be my acts in the premises.

“Por and in consideration of the services rendered and to be rendered, I hereby assign, sell, transfer and convey unto the said Will R. Saunders 15 per cent, of the first $1,000 or fraction thereof, recovered by me, and 10 per cent, of the excess of such, recovery of $1,000, provided said cause goes no further than the Industrial Accident Board; in the event, however, my claim is carried from the board into any court of competent jurisdiction, I agree, bind, and obligate myself to pay unto the said Will R. Saunders, one-third of whatever sum or sums that may be collected, whether by suit, compromise, or otherwise; together with all reasonable and necessary expenses incident thereto.

“Witness my hand at Breckenridge, Tex., this the 17th day of April, A. D. 1926.

“[Signed] Mrs. P. K. Guinn. “[Signed] Mrs. P. K. Guinn, Guardian.”

In her pleadings and testimony Mrs. Guinn contends that, at the time of employment, the real understanding between herself and said attorney was that he should be paid for his *365 services 15 per cent, of tlie first $1,000' recovered, and 10 per cent, of additional sums recovered, and that no other contract. was-ever macfe by her with the defendant in reference to the compensation to be paid him. At this point she anticipated in her original petition the above contract, which was set up and relied on by the defendant Saunders in his answer as a justification of his retaining the funds sued for; he claiming such amount under the provisions of the contract 'providing that under a certain contingency he was to be entitled to one-third of the amount recovered. . Regarding the same, she alleged and contended that, if defendant Saunders had any such contract providing for a fee of one-third interest in the recovery in any event, she did not “knowingly or willingly” sign the same, and “that on some three or four occasions she signed papers which she believed were necessary to be used by defendant in connection with the transactions being had and held with the Texas Indemnity Insurance Company, the same being various petitions, applications, and other instruments of like character, and that, if in truth and in fact the defendant had a contract signed by this plaintiff, then said contract was signed by her upon the representations made to the plaintiff by the defendant that such instrument was some kind of petition or application necessary to be presented to the Industrial Accident Board, to the court, or to the Texas Indemnity Insurance Company.”

She further alleged that she at no time read any of the instruments presented to her for signature, but that she relied upon the statements of the defendant as to their contents, and that, if any such instrument provided for a fee of one-third interest in the recovery, she signed it on the representation and belief that it was an instrument to be presented to some one of the aforesaid parties, and not knowing its provisions for such an attorney fee, in any event.

The plaintiff further alleged: (1) That, if she is bound by virtue of the terms of the purported contract, same provides for a compensation unconscionable, unjust, and unreasonable, taking into consideration the amount involved and the work done, hence she should not be bound thereby. (2) That, in. so far as she purported to act in making said contract for her minor children, she did so without authority of the probate court, and her action did not bind their estate. (3) That, if it be found that the said contract is valid and binding as to her, “then that part of the contract providing for a fee of one-third of the amount recovered in the event that the claim is carried from the Industrial Accident Board into any court of competent jurisdiction contemplated an actual, bona fide controversy as between the plaintiff and the defendant insurance company, and did not contemplate an agreed settlement nor agreed judgment. * * * That there was no necessity on the part of the defendant * * * to carry said controversy before the court, and that said differences existing between the plaintiff and the defendant insurance company were adjusted without'going into court, and prior to the time that said case appeared in court, and that the carrying of said case from the Industrial Accident Board into the district court of Stephens county, Tex., was either carried into the court merely as a matter of formality and without any actual controversy existing, or that said case was carried from the Industrial Accident Board into the district court of Stephens county, Tex., by agreement of the defendant in this cause, and the attorney for the Texas Indemnity Insurance Company, and that, although the suit was instituted by said. Texas Indemnity Insurance Company, it was instituted after an agreement had been reached between the parties that there was no real controversy between the plaintiffs in this cause and the Texas Indemnity Insurance Company.” That, by reason of the facts hereinbefore alleged, it would be, and is, grossly inequitable and unjust for the defendant in this cause to exact a fee to the extent of one-third of such recovery for the services rendered in agreeing to the judgment.

The defendant, Saunders, denied the allegations of the plaintiff, and, relied upon the terms of the contract and provisions of the statute authorizing certain attorneys’ fees for that character of legal services.

Upon the trial the court submitted the cause to the jury on special issues. These issues and the jury’s answers follow:

“First special issue: At the time Mrs. P. K.

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Bluebook (online)
1 S.W.2d 363, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saunders-v-guinn-texapp-1927.