Spethman v. Hofeldt

2 N.W.2d 620, 141 Neb. 83, 1942 Neb. LEXIS 90
CourtNebraska Supreme Court
DecidedFebruary 27, 1942
DocketNo. 31212
StatusPublished
Cited by2 cases

This text of 2 N.W.2d 620 (Spethman v. Hofeldt) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spethman v. Hofeldt, 2 N.W.2d 620, 141 Neb. 83, 1942 Neb. LEXIS 90 (Neb. 1942).

Opinion

Paine, J.

This is an appeal by two attorneys from an allowance, which they claim is entirely inadequate, upon an attorney’s lien duly filed in the district court.

An action upon an attorney’s lien came before the district court for Sarpy county upon a petition of intervention, answer and reply. It was decreed that the interveners had a first lien of 25 per cent, upon the amount their client received, of $995.47, in the proceeds of the sale of certain real estate, thereby allowing interveners upon their attorneys’ lien the sum of $248.87, with $50.95 costs and expenses advanced, and further cost of $8 in the intervention proceedings, and directed that such sums be paid within three days after the entry of the decree, instead of allowing them 25 per cent, upon the amount the attorneys claim she was entitled to receive, of some $5,175.

From this decree, the interveners have appealed solely on the one question of the amount dué them on their attorneys’ [85]*85lien. As no cross-appeal was taken, all other matters not appealed from are considered res judicata.

The interveners, in their motion for a new trial, set out that their client, Hannah Hofeldt, was entitled to nine-tenths of $5,750 under her written contract with the heirs of Fred Hofeldt, deceased; that the decree awarding interveners only 25 per cent, of the $995.47 for which said Hannah Hofeldt sold and assigned her interest in the cause of action and decree of foreclosure, without the knowledge and consent of the interveners and without satisfying their attorneys’ lien, is contrary to the evidence, and in fraud of their rights under an attorney’s lien.

Gilbert S. Brown, the attorney for the appellee, Mrs. Hannah Hofeldt, denies that interveners were actually her attorneys, and insists that the decree was exactly what she wanted done; that she dismissed the action herself, and the real question is whether the attorneys are entitled to any fee at all. It is further argued by him that the policy of the law is to encourage litigants to settle their cases; that this court should not take all she has and force her to pay the exorbitant attorney’s fee they are claiming.

It appears that attorney Brown secured a contract for 25 per cent, for representing Hannah Hofeldt, although he also represented the other heirs, whose interests were in some respects adverse to hers. Then she dismissed Mr. Brown, and on June 17, 1939, signed a memorandum retaining attorney Charles E. O’Brien to represent her interests in a mortgage foreclosure action on the Carl Hofeldt farm in Sarpy county, and authorized him to take the steps he deemed necessary to protect her interests. This was followed by a contract for attorney’s services, on 'the usual printed form, signed by Hannah Hofeldt July 8, 1939, employing Charles E. O’Brien to represent her in the matter of Meta Spethman et al. v. Carl Hofeldt et al., and providing that said O’Brien shall receive for his services a sum equal to 25 per cent, of all properties and moneys received by Hannah Hofeldt, which she agrees to pay, together with all legitimate expenses and court costs, and' she authorized her at[86]*86torney to deduct his fee from any moneys collected by her.

Thereupon, Mr. O’Brien employed Mr. Patrick to assist him as associate counsel at his own cost, and on December 12, 1939, filed notice of the attorney’s lien of 25 per cent, of the recovery of their client, Hannah Hofeldt, which the county court found to be nine-tenths of $5,750.

It will aid in understanding the issues to recite some of the facts of the litigation. Fred Hofeldt in his last will devised his estate, consisting principally of an $18,000 mortgage, to his nine children, to the entire exclusion of his wife, Hannah. By an agreement, exhibit D, attached to the petition, all of the children in writing agreed that Hannah Hofeldt, the widow of Fred Hofeldt, should receive all of the interest of $720 a year due on the $18,000 mortgage given by the son, Carl Hofeldt, up to and until March, 1937, except a one-tenth part of said sum which was to go to certain minors, in consideration of which written agreement the widow accepted the terms of the will and waived her election to assert her one-third interest in the estate. ,

In strict accordance with this agreement, the county court directed that said real estate mortgage and note be transferred to Hannah Hofeldt, so thát she might receive and collect the interest thereon up- to March, 1937, less the share adjudged to be the share of certain minors, all as per decree of final distribution entered by the county court on August 2, 1929.

When the $18,000 mortgage became due on March 1, 1937, it was not paid, and the heirs employed attorney Brown to make collection of the same, and finally Carl Hofeldt, mortgagor, agreed to pay $40 an acre in full settlement of the mortgage, but he failed to carry out this agreement or others that he made. On June 12, 1939, a petition of foreclosure was filed and a receiver was appointed.

This case was tried before District Judge Wilson, and the decree of foreclosure provided that the net sum should be distributed pro rata as per agreement between the parties, and plaintiffs were granted a deficiency judgment.

[87]*87When the matters set up in the petition of - intervention of attorneys Charles E. O’Brien and William R. Patrick were at issue, Judge Wilson called Judge Rine of Omaha in to hear the case, who held for the interveners, but decided they were entitled to but $248.87.

Exhibit No. 16, dated June 14, 1940, was an assignment for one dollar of the interest of Hannah Hofeldt in the decree of foreclosure, in which she sold all of her interest therein, which was set out to be nine-tenths of 46/227 of $7,000, to Martin Bloom, of Plattsmouth.

There appears in the bill of exceptions, as interveners’ exhibit No. 2, a letter, dated May 29,1940, signed by Mrs. Hannah Hofeldt, addressed to attorney Charles E. O’Brien in which she states to him that she has been informed that an offer to purchase the Carl Hofeldt farm, in which she has- an interest, will bring her slightly more than $900, and states that as her attorney he is requested to consent to such sale and to withhold any further action for a reasonable period.

Upon receipt of this letter, attorneys O’Brien and Patrick at once drove to see her, and explained the whole matter, and thereupon she signed the following statement -written at the bottom of interveners’ exhibit No. 2, reading as follows:

“June 1, 1940
“Dear Mr. O’Brien:
“Upon further consideration I hereby revoke the foregoing direction and hereby authorize you and Mr. Patrick to proceed with the appeal to the supreme court.
“ (Signed) Mrs. Hannah Hofeldt”

This case is replete with charges of fraud, misrepresentation and deceit between the attorneys and litigants, and it is charged on the one side that the children were willing to defraud their mother out of the amount they had agreed to pay her, and assisted Mr. Bloom, the banker at Plattsmouth, in buying out her large interests for a sum of approximately $900, and the interests of all of the heirs for some $7,000,. and sold this property for $9,600, but were required to place [88]*88in escrow $1,500 of the purchase money to await the result of these intervention proceedings.

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Related

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32 N.W.2d 742 (Nebraska Supreme Court, 1948)
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8 N.W.2d 690 (Nebraska Supreme Court, 1943)

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Bluebook (online)
2 N.W.2d 620, 141 Neb. 83, 1942 Neb. LEXIS 90, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spethman-v-hofeldt-neb-1942.