Sloan v. Stearns

290 P.2d 382, 137 Cal. App. 2d 289, 1955 Cal. App. LEXIS 1188
California Court of Appeal·Decided November 28, 1955·No. Docket Nos. 20642, 20935·Published·Cited by 45 cases

Opinions

ASHBURN, J. pro tem.*

Defendants appeal from a judgment in favor of plaintiff and an order denying their motion for judgment notwithstanding the verdict. The appeals were initially separate but they have been consolidated and the transcripts, which supplement each other, are to be treated as one. Plaintiff C. Sloan, an assignee of Attorney Lawrence L. Light, sued defendants Frederick W. Stearns and Fairway Construction Company, Inc., for recovery of attorney fees for services rendered them by Light. The complaint was in three counts but nonsuit was granted as to the first and . third causes of action, and the judgment rests upon the second [293] which is a common count for the reasonable value of legal services rendered. Mr. Light testified that the value of the same was $5,000 and the jury appraised them at $3,500.

The appeals are presented upon settled statements which are so brief as to make it difficult to determine the theories upon which the respective parties tried the case. But we are bound to assume that enough appears to enable us to decide whether reversible error was committed and we must make our ruling upon the basis of what affirmatively appears in the record. (Rule 52 of Rules on Appeal; Estate of Pierce, 32 Cal.2d 265, 274 [196 P.2d 1]; Utz v. Aureguy, 109 Cal.App.2d 803, 806-807 [241 P.2d 693].)

In response to plaintiff’s claim for the reasonable value of legal services rendered, the defendants seem to have relied upon (1) a denial that plaintiff rendered any such services, (2) a claim that services of any nature rendered by him are governed by two written contracts providing for payment upon a contingent basis and that the event giving rise to the right to compensation never occurred, and (3) that, assuming that plaintiff was their attorney, he forfeited any right to compensation by acquiring a secret adverse interest in the subject matter of his employment and also secretly represented the other parties in negotiations conducted on behalf of defendants.

Viewing the merits upon the basis of evidence favorable to plaintiff-respondent,1 it appears that initially Mr. Light was employed to assist in raising finances for defendants to enable them to carry out a Federal Housing Administration building project in San Diego. The original employment is covered by agreement of April 8, 1952. It is signed by defendant Stearns, addressed to Mr. Light and reads as follows: “This will serve to confirm our oral understanding that you are to receive from me for services rendered the sum of $5,000, provided that you are successful in obtaining for me a sum of approximately $50,000 to be used in connection with a certain F. H. A. building project in San Diego, California.

“A contract for the aforesaid building project has been awarded to me and consists of approximately 300—1, 2 and 3 bedroom units to be built on a 25 acre site in San Diego.

“If you are successful in obtaining the aforesaid sum of money for me, and it is accepted by me, the sum of $5,000.00, [294] which will be due and payable to you by me, shall be paid to you out of profits realized by me on this said building contract, and shall be paid at such time as the buildings are completed.”

Later, defendants employed Light to represent them generally as their attorney, and it was then specifically agreed that this was to be a separate employment and the compensation not to be contingent or conditional in any respect. Considerable services were performed under this employment and, as above stated, were valued by Mr. Light as a witness in the sum of $5,000. The relationship of attorney and client was terminated on or about August 1, 1952, when defendant Stearns sought a modified agreement providing a new formula for computing Light’s compensation for services in the matter of financing. At Stearns’ request Mr. Light, who was then attorney for both Stearns and his co-defendant Fairway Construction Company, Inc.,2 drew an agreement which bears date, August 8, 1952, and contains the following:

“We, Fairway Construction Company, Inc., a corporation, do hereby acknowledge that Lawrence L. Light, Attorney-at-Law, has heretofore rendered certain legal services for us, and has further devoted time and energy to obtain certain parties who have evidenced their interest in advancing certain monies by way of loan and/or joint venture to the extent of approximately Fifty Thousand ($50,000.00) Dollars, the said monies, it is contemplated, will be made available to us by way of loan as to part, and investment in a joint venture with us as to part. All of said monies to be used by us in connection with the performance of a contemplated contract with Ocean Heights Development Company, a corporation, (now in the process of being formed and organized) for the construction by us of a building project consisting of approximately Three Hundred (300) Units in the Linda Vista District, in San Diego, California.
“In the event that the aforesaid financing is made available to us, and accepted we shall pay the said Lawrence L. Light for services he has rendered as aforesaid, remuneration on the following basis.” Here follows a formula for computation of compensation which concludes with this language: “It being the intention of the parties hereto that the said Lawrence L. Light is in no event to receive a sum in excess [295] of the sum of Ten Thousand ($10,000.00) Dollars for his said services rendered.” Next appears a formula for determining what shall be considered monies realized by defendants upon their construction contract, and “That it is contemplated that this construction contract will be entered into by Fairway Construction Company, Inc. with Ocean Heights Development Company, a corporation now being organized. However, in the event that said contract is entered into with Frederick W. Stearns as an individual, this agreement shall nevertheless be enforcible as applicable to the said Frederick W. Stearns, and is therefore to be executed by the said Frederick W. Stearns individually, as well as the said corporation.
“It is further specifically understood that our said attorney has no further obligation to represent us as a legal representative, or otherwise, other than to do whatever may be necessary to secure the availability of approximately Fifty Thousand ($50,000.00) Dollars as a joint venture and/or loan, and which said monies are accepted by us.”

Free access — add to your briefcase to read the full text and ask questions with AI

Sloan v. Stearns, 290 P.2d 382, 137 Cal. App. 2d 289, 1955 Cal. App. LEXIS 1188 (Cal. Ct. App. 1955).

290 P.2d 382 (Sloan v. Stearns) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Winzer v. Johnson CA5
California Court of Appeal, 2024
Todd v. Johnson CA5
California Court of Appeal, 2024
Laverdure v. State of California CA2/7
California Court of Appeal, 2024
Inobe v. Hino CA2/8
California Court of Appeal, 2023
Erika A. v. Dominic J. CA5
California Court of Appeal, 2022
Darehshiri v. Aghamahmoudi CA4/1
California Court of Appeal, 2021
In re Marriage of Cooper
California Court of Appeal, 2016
Marriage of Cooper CA3
California Court of Appeal, 2016
Miller v. Cooper (In re Cooper)
203 Cal. Rptr. 3d 281 (California Court of Appeals, 5th District, 2016)
Traxler v. Varady
12 Cal. App. 4th 1321 (California Court of Appeal, 1993)
Mirabito v. Liccardo
4 Cal. App. 4th 41 (California Court of Appeal, 1992)
Paverud v. Niagara MacHine & Tool Works
189 Cal. App. 3d 858 (California Court of Appeal, 1987)
Williams v. Carl Karcher Enterprises, Inc.
182 Cal. App. 3d 479 (California Court of Appeal, 1986)
Trans Western Leasing Corp. v. Corrao Construction Co.
652 P.2d 1181 (Nevada Supreme Court, 1982)
Ford v. State of California
116 Cal. App. 3d 507 (California Court of Appeal, 1981)
Ernest W. Hahn, Inc. v. Sunshield Insulation Co.
68 Cal. App. 3d 1018 (California Court of Appeal, 1977)
Merritt v. Reserve Insurance
34 Cal. App. 3d 858 (California Court of Appeal, 1973)
Ames v. State Bar
506 P.2d 625 (California Supreme Court, 1973)
Brawthen v. H & R BLOCK, INC.
28 Cal. App. 3d 131 (California Court of Appeal, 1972)