Schnackenberg v. Towle

115 N.E.2d 813, 351 Ill. App. 497
CourtAppellate Court of Illinois
DecidedDecember 4, 1953
DocketGen. 46,046
StatusPublished
Cited by3 cases

This text of 115 N.E.2d 813 (Schnackenberg v. Towle) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schnackenberg v. Towle, 115 N.E.2d 813, 351 Ill. App. 497 (Ill. Ct. App. 1953).

Opinion

Mr. Justice Friend

delivered the opinion of the court.

Plaintiff was elected judge of the circuit court of Cook county, Illinois on June 4, 1945. Prior to his election he had, since 1912, practiced law in Chicago and had, for many years, been a representative in the General Assembly of Illinois, serving as speaker of the House during one or two sessions. In the course of his practice and as a legislator, he gained considerable experience in cases involving the Illinois Retailers’ Occupation Tax. In the latter part of May 1945—which predated his election to the bench—he received an inquiry from the Norton Company of Worcester, Massachusetts, concerning his employment as attorney, which later became the subject matter of the joint venture here involved. He agreed to represent the company, but with the reservation that while he would accept full responsibility for handling the matter, since he was about to be elected as a judge of the circuit court of Cook county, all appearances in the Department of Revenue and in court would be made by and in the name of his associate, Roland Towle, the defendant here. Plaintiff’s retainer was confirmed by letter of the Norton Company, dated June 4, 1945, and received by plaintiff one or two days later. On June 11, 1945 plaintiff and defendant executed the following agreement: “It is agreed that Roland Towle will assist Elmer J. Schnackenberg in the handling of the Norton Company claim against the State of Illinois and that the fees arising therefrom shall be divided one-third to Mr. Towle and two-thirds to Mr. Schnackenberg and that Mr. Towle may handle said claim of record in the name of Hansen & Towle. It is further agreed that Mr. Schnackenberg will render all required service in handling this claim.”

The claim of the Norton Company had originally been filed December 26, 1944 with the Department of Revenue of the State of Illinois, alleging payment of sales tax on items not covered by the Act and asking for an allowance of credit in the sum of $100,692.01. •Following a tentative denial of the claim on May 3, 1945 by the Department, the Norton Company, one week later, filed its protest, accompanied by a demand for a hearing thereon. Subsequently it retained plaintiff and defendant to act as its attorneys in the matter. The claim was prosecuted through the Department of Revenue, the circuit court of Sangamon county, the Supreme Court of Illinois and the Supreme Court of the United States to final judgment. The litigation extended over a period of five years and eight months. During that time plaintiff continued to be a judge of the circuit court of Cook county.

The Norton Company paid legal fees and reimbursement for out-of-pocket expenses, but defendant, who received the payments, refused to account to plaintiff, except with respect to the first fee payment in the amount of $10,000. The chancellor found the accounting was due, stated the account to be in favor of plaintiff in the amount of $26,741.91, with interest from June 25,1951, and entered a decree thereon in favor of plaintiff, from which defendant appeals.

Immediately following his employment by Norton Company, plaintiff began to work on its claim for credit for tax illegally exacted, as it alleged, by the State of Illinois. He and defendant consulted constantly with respect to all phases and all steps in the prosecution of the claim, including audits, classification of transactions, hearings in the Department of Revenue, and all pleadings and briefs filed in court, as well as the preparation for all hearings and arguments. However, plaintiff did not appear at any of the hearings or arguments, nor did his name appear in the records or on any document or brief filed in the Department of Revenue or in any court. After the litigation was concluded, plaintiff and defendant consulted in the preparation of a communication to the client analyzing the decision of the Supreme Court of the United States and advising the client how and to what extent it applied to its interstate transactions. Finally, plaintiff "consulted with defendant as to the final fee which should be charged for all services rendered. In prosecuting the claim plaintiff performed all the services required of him and fully performed his agreement with defendant. Defendant evidently recognized the agreement and, as stated, paid plaintiff his proportionate share of the $10,000 fee received in 1946.

It is clear upon the record that when plaintiff was retained by the Norton Company and at the time he asked defendant to become associated with him in handling the matter, both parties knew that plaintiff would soon be elected a judge, and the agreement was undoubtedly drafted and executed with that eventuality in mind; and the testimony of the witnesses and the finding of the chancellor show that the arrangement was carried out without deviation.

Defendant now seeks to avoid an accounting of the proceeds of the joint venture on the ground of illegality. It is urged that the contract was void for any one of the following principal reasons: (1) that plaintiff’s participation in the case when it was before the circuit court of Sangamon county constituted practice as an attorney in the court in which he was commissioned; (2) that the agreement whereby plaintiff undertook, for personal gain, to render services as an attorney at law on behalf of the claimant in litigation, is violative of the constitution of Illinois which circumscribes the activities in which a judge may lawfully engage during his term of office, and is contrary to the public policy of the State; and (3) that plaintiff, being a judge of a court of general jurisdiction, was disqualified to act as an attorney at law in any forum.

The defense that plaintiff’s participation in the case when it was before the circuit court of Sangamon county constituted practice as an attorney in the court in which he was commissioned, is predicated on” the premise that there is only one circuit court in the State of Illinois and that plaintiff is commissioned a judge of that one circuit court. It is indisputable that the circuit court of Cook county is a part of the judicial system of the State, but that it is separate and distinct from other courts in that system is illustrated by numerous references in the constitution of Illinois where, referring to circuit courts, the plural term is constantly used. Thus, Article VI, section 1 provides that “The judicial powers . . . shall be vested in one supreme court, circuit courts, county courts, justices of the peace, police magistrates, and such courts as may be created by law in and for cities and incorporated towns.” Article VI, section 12 provides that “The circuit courts shall have original jurisdiction of all causes .... The terms of office of judges of circuit courts shall be six years.” Section 15 of the same article states that “The general assembly may divide the state into judicial circuits . . . , and provide for the election therein, severally, by the electors thereof . . . of not exceeding four judges, who shall hold the circuit courts in the circuit for which they shall be elected”; and section 23 of the article provides that “The county of Cook shall be one judicial circuit. The circuit court of Cook county shall consist of five judges . . .” We think these constitutional provisions show that the circuit court of Cook county is separate and distinct from the other circuit courts in the State.

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Related

Bruno v. Gabhauer
292 N.E.2d 238 (Appellate Court of Illinois, 1972)
Galler v. Galler
203 N.E.2d 577 (Illinois Supreme Court, 1965)
Schnackenberg v. Towle
123 N.E.2d 817 (Illinois Supreme Court, 1954)

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Bluebook (online)
115 N.E.2d 813, 351 Ill. App. 497, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schnackenberg-v-towle-illappct-1953.