Snyder v. Howard's Adm'x

65 S.W.2d 477, 251 Ky. 592, 1933 Ky. LEXIS 906
CourtCourt of Appeals of Kentucky (pre-1976)
DecidedOctober 20, 1933
StatusPublished
Cited by6 cases

This text of 65 S.W.2d 477 (Snyder v. Howard's Adm'x) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky (pre-1976) primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Snyder v. Howard's Adm'x, 65 S.W.2d 477, 251 Ky. 592, 1933 Ky. LEXIS 906 (Ky. 1933).

Opinion

Opinion of the Court by

Hobson, Commissioner

Affirming.

The Wallins Creek Collieries Company failed to pay a number of miners for their work. Their claims amounted to $17,877.46. These miners employed J. B. *593 Snyder as tlieir attorney to collect their claims, and he filed two actions against the collieries company, in which judgment was rendered in favor of the plaintiffs. The company appealed to this court with supersedeas. The appeal was dismissed. Thereupon suit was filed against the Maryland Casualty Company, the surety on the appeal bond, to recover the debt and 10 per cent, damages, and judgment was entered against the surety on the bond. The surety paid the judgment to J. B. Snyder as attorney. Snyder had a contract with each of his clients by which it was agreed as follows:

“That said Snyder is to have a fee equal to- 50% of the amount recovered if the’ matter is tried in court. ’ ’

The money had been due the miners for about four years when the action against the collieries company was brought, and after judgment was rendered in their favor against the company 88.7 per cent, of them sold their claims to C. M. Howard and J. R. Wiler, who discounted them 6 per cent, on the face value without interest. When they had bought one claim and before they bought others they went to see Snyder, who was the attorney for the miners, and, as they say, made a contract with him by which they were to pay him 5 per cent, of their profit on the claims and he was to go on and collect the money. When Snyder collected the money from the surety company, he retained 50 per cent, of it for his services and paid over to Howard and Wiler their 88.7 per cent, of the other half of the fund. But he did not pay to them any part of the 10 per cent, damages recovered on the appeal, amounting to $2,-314.81. They brought this action against him to recover their part — 88.7 per cent, of this money, being $1,026.61. He filed answer and counterclaim. On the trial before a jury, there was a verdict and judgment in favor of the plaintiffs for $1,026.51, subject to a credit of $453.33. From this judgment Snyder appeals, and the plaintiffs prosecute a cross-appeal.

Snyder filed a special demurrer to the petition, on the ground that there was a defect of parties, in that the miners who had sold their claims to the plaintiffs were not parties to the action. The court properly overruled this special demurrer. This was not a suit upon the judgment which the miners had obtained *594 against the coal company. This was a suit of the plaintiffs against Snyder to make him account for money which he had collected as their attorney under a contract that they would pay him 5 per cent, of the net profits they made in the transaction. The case would not be different if A had an open account against B and assigned it to C and C put it in the hands of Snyder for collection and then had brought a suit against Snyder to make him account for the money which he had collected.

The defendant filed also a general demurrer to the petition on the ground that the 10 per cent, collected on the supersedeas bond was not collected upon the original judgments which had been assigned to plaintiffs, and it is insisted that Snyder was not responsible to.them for this money. By the written contract signed by each of the miners and drawn up with Snyder’s approval, he was directed to pay to plaintiffs “all funds that may be due or may become due to me as a party plaintiff,” in the suits referred to which Snyder had brought. If the miners had continued to own the claim very clearly Snyder would have had to account to them for the 10 per cent., and by the assignment every right that the assignors had to an accounting from Snyder was vested in the assignees, and this he agreed to. Snyder was entitled to his share of the 10 per cent, damages under his contract for a fee equal to 50 per cent, of the recovery. His recovery, as is well settled, is the amount received by the client by reason of the judgment. Whitlow’s Adm’r v. Whitlow’s Adm’r, 109 Ky. 573, 60 S. W. 182, 22 Ky. Law Rep. 1179; Woolridge v. Bradbury, 185 Ky. 587, 215 S. W. 406. If Snyder under his contract was entitled to 50 per cent, of this money, very clearly his original clients were entitled to the other 50 per cent., and the plaintiffs by their assignment took every right that their assignors had.

As to the instructions to the jury. The plaintiffs by their petition sought to recover their part of the 10 per cent, penalty on the supersedeas which, as admitted on the trial, was $2,314.81, and their part of one-half of this was $1,026.51. By their amended petition, they admitted that their half of the 10 per cent, penalty was to be credited by 5 per cent, of the profits-which they had made on the transaction, but averred that until it was decided whether they were entitled to *595 any part of the penalty, they were unable to determine what 5 per cent, of the profits amounted to. Snyder pleaded as a counterclaim expenses he had incurred in employing other lawyers and certain other expenses he had been compelled to incur in and during the prosecution -of the litigation, and prayed judgment against the plaintiffs. At the conclusion of the trial, he asked the court to give instructions A, B, and C, which were refused by the court. The court gave then to the jury instructions 1, 2, 3, and 4. Instructions 1 and 2 submitted plaintiffs’ case as set out in the petition. Instruction 3 set out defendant’s counterclaim. Instruction 4 simply told the jury that nine of the jury might find a verdict. In the grounds for a new trial filed by Snyder the only reference to the instructions to the jury is in these words:

“That the court erred in refusing to give a proper instruction to the jury on the defendant’s counterclaim to find for the defendant 5% of the profits made by the plaintiffs, not to exceed 5%, while the court erroneously instructed the jury to find for the defendant 5% of the penalty in question.”

It will be observed that there was no complaint of the refusal of the court to give instructions A, B, and C which the defendant had asked, and therefore this ruling of the court cannot be complained of here. By instruction 3 the court submitted to the jury the question of the expenses the defendant had incurred in employing other lawyers or for his other expenses in the matters. This instruction was given as a substitute for instructions A, B, and C asked by the defendant, and covered all the matters referred to in those instructions. By it the court limited the amount which the jury could find for the defendant because of expenses incurred in and during the prosecution of the litigation to other expenses than the fees paid out to other counsel employed to assist the defendant to the sum of .$300.85.

It is true that instruction No. 2 is open to the criticism leveled at it by the defendant. The court had by instruction No. 1 told the jury that the plaintiffs were entitled to the one-half of the 10 per cent, penalty for which this suit was brought. By instruction No. 2, the court told the jury to credit this one-half of the 10 per cent, penalty by 5 per cent, thereof, or $55.33. This .was error. The credit which the plaintiffs conceded by *596

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Bluebook (online)
65 S.W.2d 477, 251 Ky. 592, 1933 Ky. LEXIS 906, Counsel Stack Legal Research, https://law.counselstack.com/opinion/snyder-v-howards-admx-kyctapphigh-1933.