Smith v. Acker Process Co.

92 N.Y.S. 351
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 1, 1905
StatusPublished
Cited by1 cases

This text of 92 N.Y.S. 351 (Smith v. Acker Process Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Acker Process Co., 92 N.Y.S. 351 (N.Y. Ct. App. 1905).

Opinion

WILLIAMS, J.

The order appealed from should be reversed, with $10 costs and disbursements, and motion denied, with $10 costs, with leave to plaintiff’s attorneys to apply to the court, upon petition, to determine and enforce their lien for compensation for services, under section 66 of the Code of Civil Procedure, upon payment of the foregoing costs.

The action is to restrain the creation and continuance of a nuisance, and for damages occasioned by such nuisance. It was commenced in August, 1902, and issue joined in September, 1902. December 8, 1902, plaintiff conveyed her premises affected by the alleged nuisance to an officer of the defendant, and received therefor $3,730; and, in consideration thereof, she made a written agreement with defendant, settling the action and the subject-matter thereof, stipulating a discontinuance without costs, and directing her attorney to discontinue the action. In June, 1903, this and several other actions of a like nature against the same, defendant were referred to a referee, to hear, try, and determine. The actions were to be tried together, the same proofs as to nuisance to be used in all of them. In July, 1904, the cases were brought to trial before the referee, and evidence taken apparently until the plaintiff’s cases were closed. Then a motion was made at Special Term for a discontinuance of this action by reason of the written agreement of settlement made in December, 1902. This motion was heard August 1, 1904, and restilted in an order that the defendant be permitted to serve a supplemental answer alleging the settlement. The answer was at once served. October 17, 1904, a motion was made at Special Term for leave to continue the action for the purpose of determining and establishing the lien of plaintiff’s attorneys, which resulted in the order from which this appeal is taken. The papers use4 upon such motion did not disclose the amount claimed by the attorneys as compensation for their services in the action, nor whether there was any express agreement with plaintiff as to the amount they should receive—whether a gross sum or a percentage of the sum recovered in the action. The action is not one where a percentage of the damages recovered would be likely to be made the basis for fixing the attorney’s compensation. It was merely stated that they had been paid nothing, and a large amount was owing to them.Titer-? was no satisfactpry showing in the papers that the plaintiff was [353]*353not a woman of sufficient financial responsibility to pay the attorneys what was due them. There is no doubt but the settlement was made, and was perfectly legal and proper between the parties, and that, by its terms, defendant was not to pay her attorneys—she was to pay them herself. There does not appear to have been any intention on the part of the defendant to deprive the plaintiff’s attorneys of their compensation in the case. There was paid to the plaintiff at the time of the settlement a large sum of money ($3,730), and, after paying therefrom some liens and charges on the property conveyed by her, she had a considerable sum left ($1,500—$2,000). She was therefore apparently able then to pay her attorneys for their services, and the liens and papers very satisfactorily show that she has substantially that amount of property still. She has concededly a vacant lot worth $300—$500, and her son testifies that she has upwards of $1,000 invested in a business carried on by her husband, which is a lucrative one. Her husband says she has no other real property except the vacant lot. He does not say she has no personal property invested in his business or elsewhere. She is a married woman, supported by her husband, and is carrying on no business herself. It is true, she is made to state in her affidavit, in contradiction of her son and her husband, that she has no property of any kind except the vacant lot. If this be true, and she really intends so to testify, why does her husband fail to corroborate the statement ? The papers do not, in view of what we have said, show that the plaintiff is not financially responsible and able to pay her attorneys for their services in the action. This being so, it seems to us there was no ground for making the order appealed from, or any other order, for the purpose of determining and enforcing any alleged lien of the attorneys. Until they show they cannot get their money from their own client, the court is not justified in entertaining any proceeding under section 66 of the Code.

The settlement was made without the knowledge or consent of the attorneys, and their rights should be protected. If their client is irresponsible and cannot be made to pay them, then the defendant must be made to respond, but not otherwise; and, whenever a prima facie case is made by the attorneys for relief under this section 66 of the Code, then the court should, in a proper way, entertain the application, and determine what lien, if any, exists, and take measures to enforce the same. This is the fair conclusion to be drawn from recent decisions by the Court of Appeals.

In Poole v. Belcha, 131 N. Y. 200, 30 N. E. 53, a settlement had been made by the parties, which the attorneys sought to set aside for the protection of their lien. The court said the provision of the Code—

“Does not prevent parties from settling and releasing judgments, suits, and controversies. If the release has the effect of defrauding the * * * attorney of his costs, the court has power to, and should, set it aside and protect the attorney’s lien. But there was nothing shown on the motion to lead the court to believe that the attorney needed any protection. For aught that appears, his client is able and willing to pay all his reasonable and proper charges, and, if this is so, why should the parties be prevented from settling the litigation in their own way? * * * In order to warrant the court in disregarding a settlement and release made in an action, it must [354]*354be shown that to give full effect to them will operate as a fraud upon the attorney, or at least to his prejudice, by depriving him of his costs or turning him over to an irresponsible client.”

In Matter of King, 168 N. Y. 53, 60 N. E. 1054, it was held that, under the last clause of section 66 of the Code, the court not only has jurisdiction to, but it must, either itself or by a reference, in its discretion, determine the amount of a client’s indebtedness to his attorney; that the provision is not unconstitutional, and the parties are not entitled to a trial by jury of such issue; that the remedy is equitable in character, and the equity side of the court has jurisdiction. The manner in which the court could enforce the lien was not involved in that case, and was not considered. The court by the section is given the power to enforce the lien, as well as to determine that it exists and the amount thereof. The way in which it can be enforced will necessarily vary, according to the circumstances of each particular case.

In Fischer-Hanson v. Br. H. R. Co., 173 N. Y. 492, 66 N. E. 395, the question of determining and enforcing the lien in the various ways was considered. In that case it was determined and enforced by an action in equity brought against both parties to the action. A negligence action had been settled for $1,500, the money paid to the plaintiff, and he had gone out of the country with the same, so that the attorneys could not reach the money or their client. The attorneys claimed that by agreement they were entitled to one-half of the money paid on the settlement.

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Cite This Page — Counsel Stack

Bluebook (online)
92 N.Y.S. 351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-acker-process-co-nyappdiv-1905.