Smith v. Vicksburg, S. & P. Ry. Co.

36 So. 826, 112 La. 985, 1904 La. LEXIS 500
CourtSupreme Court of Louisiana
DecidedMarch 28, 1904
DocketNo. 15,060
StatusPublished
Cited by10 cases

This text of 36 So. 826 (Smith v. Vicksburg, S. & P. Ry. Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Vicksburg, S. & P. Ry. Co., 36 So. 826, 112 La. 985, 1904 La. LEXIS 500 (La. 1904).

Opinion

BREAUX, J.

The attorneys of the plaintiff attack a compromise entered into by the -plaintiff with the defendant company on the ground that it was made in bad faith, and by collusion with the plaintiff, and without their knowledge or consent.

The plaintiff was one of defendant’s laborers, and, while at work for defendant, he, in an accident, lost both his legs, through, as he charged, the default and negligence of the defendant.

A short time after the accident, while confined by his wounds at the hospital, he employed I-Iolbert and Barret as attorneys to institute a suit for damages, and signed a contract with them regarding their fee, and gave them the exclusive right to compromise.

Mr. Plolbert, of the firm, died. A new contract was drawn, setting forth the fee. Mr. Barret associated Sutherlin and Hall with him in the case. They, a short time afterward, brought suit for plaintiff for $20,000. The first contract of employment was served upon the defendant prior to the compromise. The second contract was not served, but it must have been known that they were plaintiff’s attorneys, as their names were signed to the petition served on the defendant.

This suit was filed on the 20th day of November, 1902, and on the following January the defendant appeared through counsel, and answered, setting up a general denial and the plea of contributory negligence.

On a day of May following, the defendant produced a written agreement of compromise with plaintiff, dated the 9th of April preceding, and filed a plea therewith, in which it alleged that plaintiff had voluntarily entered into this compromise for. the settling of the suit, and he received in settlement and compromise the sum of $1,200 in cash, and executed a receipt acquitting defendant com[987]*987pany of all claims for the injuries he sustained in the accident mentioned above.

The attorneys of record moved to set aside this compromise, and stated the facts showing good cause of complaint, as we think. As to whether it is sufficient in law to enable them to recover is a question that will receive careful consideration later in our decision.

They specially charge in their motion that defendant had entered into this compiromise with an ignorant, illiterate, helpless negro at his home in Mississippi, who was in bad health; and that it was a fraud upon these attorneys and the profession to which they belong, and should not receive the approval of the courts, and that it should be annulled and set aside in whole or in so far as the attorneys are concerned.

They averred that the sum paid him was an insignificant amount for the injuries suffered by him, and tendered the amount paid him in open court, and asked the court to revoke and set aside the compromise, and prosecute the case to judgment.

We should have before mentioned that this motion to set aside the compromise was filed in the name of plaintiff and in his behalf; that, in addition, the attorneys before named joined in that motion, and specifically alleged therein, in so far as they were concerned, in" substance as just stated.

The act of compromise shows that it was signed in the presence of a merchant and planter on whose land plaintiff lived. The testimony showed that this planter and merchant had taken an active part in bringing about the compromise, although he knew that the claim was in the hands of attorneys, who had not been advised with in the premises. There is no question but that it was the intention of plaintiff, when he entered into a contract with his attorneys, to' let them have exclusive control of the proceedings. It is also in evidence that plaintiff, Smith, afterward took 'the initiative steps toward bringing about the compromise, and that defendant’s agents were not at first favorable to a compromise. It also appears from the testimony that the attorneys .were to be paid a contingent fee out of the amount recovered, and that the percentage at which the fee was-fixed was the customary fee for lawyers to take damage suits in Shreveport. On the day that the comxrromise in question was signed the plaintiff wrote to Holbert and Barret, revoking the “power of attorney vested in said firm or either of its members.” The plaintiff does not complain of the compromise settlement, and personally does not appear to have joined in the motion to set aside the compromise.

The judge of the district court decided that counsel for plaintiff have no lien for their fees on the cause of action, and that counsel’s contract with plaintiff does not secure to-them an interest in the litigation; “that an attorney cannot lawfully purchase a litigious right” (Civ. Code, art. 2447); hence an attorney cannot acquire a vested interest in a pending suit, and decided against the attorneys. Counsel concede that a right to damages for personal injury is not assignable, but controvert the proposition of the district court “that the attorney had no lien.”

The right to compromise the case vel non presents the question at issue.

As between plaintiff and his attorneys, plaintiff had no such right. It was the stixsulation exxoressed in the first contract, and, even if not expressed in the second, it was its spirit and intention. Plaintiff had no right to bring the employment to a premature end by a compromise with defendant. This was exceedingly improper treatment, which the attorneys did not deserve, as they had served him faithfully; a fact, if known to the planter and merchant before referred to, would perhaps have deterred him from: taking an active part in matter of this compromise. As relates to plaintiff, it was an unauthorized compromise, which no client [989]*989should think of making without first advising with his attorney to whom he has promised to pay a part of the damages in satisfaction of his services. Plaintiff had been benefited by the suit, and would not, in all probability, have been heard as an applicant for a compromise if no suit had been brought

The defendant’s case is different. It was under no contractual obligation to plaintiff’s attorneys and owed them no duty.

“Parties to a lawsuit may settle and compromise their litigation without consulting their counsel, and, in the absence of a statute giving an attorney a lien for his fees, courts will not intervene, unless there has been collusion between the parties, and an attempt to defraud an attorney out of his fees.” Weeks on Attorney at Law, p. 477.

The charge of collusion and fraud is not sustained as to defendant. The testimony does not disclose that through its' claim agent, or any one else, influence was brought to bear that resulted in a compromise. Defendant’s agents did not seek him. 1-Ie sought them through the offices of a merchant and planter who interested himself in his behalf, without, as he testified, receiving any reward of any kind.

The facts are different from what they were in the Lampkin Case, 42 La. Ann. 997, 8 South.

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Cite This Page — Counsel Stack

Bluebook (online)
36 So. 826, 112 La. 985, 1904 La. LEXIS 500, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-vicksburg-s-p-ry-co-la-1904.