Sokoll v. Humphrey, Lutz & Smith

380 So. 2d 840, 1979 Ala. Civ. App. LEXIS 871
CourtCourt of Civil Appeals of Alabama
DecidedMarch 28, 1979
DocketCiv. 1607-X
StatusPublished
Cited by1 cases

This text of 380 So. 2d 840 (Sokoll v. Humphrey, Lutz & Smith) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sokoll v. Humphrey, Lutz & Smith, 380 So. 2d 840, 1979 Ala. Civ. App. LEXIS 871 (Ala. Ct. App. 1979).

Opinion

BRADLEY, Judge.

Plaintiff appeals and defendant-partnership cross-appeals from a final judgment rendered by the Circuit Court of Madison County which awarded plaintiff a recovery of $7,431.60 and which denied the partnership’s counterclaims.

The prior opinion in this cause may be found at Sokoll v. Humphrey, Lutz & Smith, Ala.Civ.App., 337 So.2d 362, cert. den. Ala., 337 So.2d 365 (1976).

This appeal concerns a dispute between the partnership and its former client about funds recovered as a judgment in a workmen’s compensation case handled for the former client by the partnership. Plaintiff-appellant’s principal contentions on appeal are that the trial court erred in awarding her a sum that is insufficient and which is not in conformance with the evidence, and erred in failing to award her the five percent per month statutory damages mandated by Code of Alabama 1975, § 6-6-740. The principal contentions of the partnership in its cross-appeal are that the trial court erred in its award to plaintiff of accrued interest, erred in denying its counterclaim, and erred by admitting certain testimony into evidence in contravention of the “dead-man’s statute,” Code of Alabama 1975, § 12-21-163.

In our prior opinion in this cause, Sokoll v. Humphrey, Lutz & Smith, Ala.Civ.App., 337 So.2d 362, cert. den. Ala., 337 So.2d 365 (1976), we set forth some of the facts pertinent to the present appeal as follows:

Defendants are partners engaged in the practice of law. In November of 1966, plaintiff entered into a contract with defendants whereby defendants were to prosecute plaintiff’s claim for damages against the Chrysler Corporation. This claim was based on the common law and the Alabama Employers’ Liability Act. A contingent fee of 50% was provided by the contract.
Suit was subsequently filed against Chrysler Corporation in the United States District Court for the Northern District of Alabama. Chrysler Corporation moved for summary judgment on the ground that the action should have been brought as a workmen’s compensation claim. This motion was granted by the court with leave to amend the complaint to claim workmen’s compensation, which was done.
The litigation resulted in judgment being awarded in plaintiff’s favor in June of 1969, for total permanent disability under the Alabama Workmen’s Compensation Act. The court awarded defendants attorney’s fees of 15% of plaintiff’s recovery, pursuant to Tit. 26, § 261, Code of Alabama 1940. Chrysler Corporation appealed the judgment to the United States Fifth Circuit Court of Appeals, which affirmed the action of the trial court in July of 1970. A rehearing was subsequently denied by the Fifth Circuit Court of Appeals sitting en banc, and in [842]*842September of 1970 defendants received payment of the judgment against Chrysler Corporation in the amount of $16,-685.15. Defendants deducted their expenses of $2,073.37 from the judgment monies and divided the remainder equally between plaintiff and themselves, each receiving $7,305.89.
Plaintiff in August of 1973 filed suit against defendant seeking to recover $5,073.12, which sum plaintiff alleged was wrongfully withheld by defendants from the judgment against Chrysler Corporation. Plaintiff based her contention upon the fact that defendants withheld 50% of her recovery, after deduction of expenses, as attorneys’ fees, although the federal district judge set a 15% attorneys’ fee under Tit. 26, § 261, Code of Alabama 1940 [currently codified at Code of Alabama 1975, § 25-5-90]. Defendants subsequently counterclaimed against plaintiff, alleging that she owed them money for services performed by them. In October of 1975, defendants moved for summary judgment in their favor as to both plaintiff’s claim and their counterclaims. Both parties submitted affidavits in connection with the motion, as provided by Rule 56, ARCP. The motion was granted by the trial court as to plaintiff’s claim, and this appeal by plaintiff ensued.

This court reversed the trial court’s granting of defendants’ motion for summary judgment, holding that once plaintiff’s claim was prosecuted under the Workmen’s Compensation Act, that part of the contract between the parties which specified a fifty percent contingent fee arrangement was no longer valid. Sokoll, supra.

Edgar E. Smith, a party defendant and a member of defendant-partnership, died in August 1977. Mary Smith, his widow and administratrix of his estate, was substituted as a party defendant. Amended answers and counterclaims were filed by the parties.

The day before this cause was to be heard, the defendants paid into court the sum of $9,379.26, i. e. the amount of the entire judgment received in the suit against Chrysler Corporation less that amount previously turned over to plaintiff.

The trial court, sitting without a jury, held a hearing on May 30, 1978. On June 1, 1978 plaintiff filed a motion to amend her complaint to conform to the evidence under Rule 15(b), ARCP.

Her original complaint had alleged that defendants owed her $5,073.12 for money had and received. Her amended complaint alleged that while defendants had paid her $7,305.89 of the workmen’s compensation recovery, they should have paid her $14,-452.38, that being the amount of the recovery less the fifteen percent attorney’s fees set by the United States District Court judgment. She alleged a demand and refusal on or about September 25, 1970 for this additional amount.

Her amended complaint demanded judgment as follows:

Wherefore, the plaintiff demands judgment against the defendants in this cause for the sum of $7,146.49 which is the total of the recovery of her judgment in said workmen’s compensation suit minus the amount that she has been paid and the allotted attorney’s fee. In addition thereto, she demands judgment against the defendants in the sum of $43,144.59 for the penalty against the defendants for their failure to deposit the aggregate amount of money in their possession with the Circuit Clerk as provided by the Code of Alabama 1975, Section 6-6-740, for a total of $50,291.08, plus costs and interest.

From the record it does not appear that the trial court ruled on plaintiff’s motion to amend her Complaint.

The trial court on June 26,1978 entered a final judgment for plaintiff in the amount of $7,431.60, representing the sum of $5,073.12 and interest on the same at the rate of six percent per annum from September 25, 1970 (the date plaintiff alleged that defendants refused her demand for the remaining portion of the judgment monies) to the date of the final judgment. The parties to this appeal mutually agree in brief that the sum of $5,073.12, used by the trial court in computing the amount of the judgment, represents the $16,685.15 recov[843]*843ery from Chrysler Corporation, less litigation expenses incurred by Smith in the investigation of plaintiff’s tort claim and the investigation and prosecution to final judgment of plaintiff’s claim for workmen’s compensation benefits, less attorney’s fees of $2,232.77, and less the $7,305.89 of that recovery received by plaintiff in 1970. (The funds for the expenses were advanced by defendants during the course of their representation of plaintiff in that suit.)

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Related

Sokoll v. Humphrey, Lutz & Smith
380 So. 2d 845 (Supreme Court of Alabama, 1980)

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Bluebook (online)
380 So. 2d 840, 1979 Ala. Civ. App. LEXIS 871, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sokoll-v-humphrey-lutz-smith-alacivapp-1979.