Spinelli v. Economy Stations, Inc.

429 P.2d 240, 71 Wash. 2d 503, 1967 Wash. LEXIS 972
CourtWashington Supreme Court
DecidedJune 22, 1967
Docket38961
StatusPublished
Cited by13 cases

This text of 429 P.2d 240 (Spinelli v. Economy Stations, Inc.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spinelli v. Economy Stations, Inc., 429 P.2d 240, 71 Wash. 2d 503, 1967 Wash. LEXIS 972 (Wash. 1967).

Opinion

Barnett, J.

This is a case of attorneys suing their *504 client for compensation for legal services. In their complaint plaintiffs Frank M. Spinelli and James A. Soderquist alleged that the defendant Economy Stations, Inc., had become indebted to them in the amount of $25,000 for professional services rendered from March 31, 1965, to September 28, 1965, in connection with a suit brought by Tidewater Oil Company against defendant. In an amended answer defendant denied that it owed any amount to the plaintiffs and affirmatively alleged it had paid plaintiff Soderquist regularly and fully during the said period and had paid plaintiff Spinelli, upon his request, $3,000 in cash as payment in full for his service up to the trial; therefore, since the Tidewater case was settled before trial it owed no more to either of the plaintiffs.

The case was tried to a jury which returned a verdict in the amount of $20,000 for the plaintiffs. This appeal was taken from a judgment entered upon the verdict.

A resume of the facts taken in the light most favorable to the plaintiffs follow. In 1961 the defendant corporation entered into a complex contractual arrangement with Tidewater Oil Company for the distribution of Tidewater’s petroleum products through defendant’s service stations. Part of the arrangement was a leasing of eight stations owned by the defendant to Tidewater at a rental of three and one-half cents per gallon for each gallon of Tidewater gasoline delivered to the eight stations. These eight stations were subleased back to the defendant as a part of the over-all transaction.

In March 1965, a summons and complaint were served upon the defendant alleging that the defendant had diverted Tidewater gasoline purportedly destined for one of the eight stations involved in the leasing arrangement to other stations. The defendant billed Tidewater at the agreed rental rate for the leased stations based upon the purported deliveries of gasoline. Tidewater prayed for damages of more than $100,000 as a result of the alleged wrongful diversion and false billing. An offer of settlement was made by Tidewater but rejected by defendant; thereafter, Tidewater filed the summons and complaint.

*505 By answer to interrogatories the defendant admitted it had diverted 721,635 gallons of gasoline, and it also answered that officers and employees of Tidewater allegedly knew of this diversion. In its answer to the complaint defendant denied false consignment or false billing because of this knowledge on the part of Tidewater’s employees and officers.

Tidewater had two auditors inspect the books and records of the defendant corporation as to the alleged diversion. After the inspection defendant’s attorneys were advised that the prayer for damages would be increased to between $250,000 and $260,000.

Plaintiff Soderquist was counsel on retainer for the defendant, however, the retainer did not cover the defense of the Tidewater action. Soderquist sought the aid of his office associate, plaintiff Spinelli, for the case but at no added cost to the defendant.

Soderquist traveled to Los Angeles with the president of the defendant corporation to seek a settlement. A settlement was not then accomplished. Soderquist was paid $500 for travel expenses. Tidewater informed the defendant that it would take depositions of all the officers and employees the defendant had alleged knew of the diversions. Spinelli demanded $5,000 from the defendant before he would take part in the deposition proceedings. Spinelli was paid $3,000 in cash and he gave a signed receipt in return. The receipt reads essentially as follows:

No. 6927
August 11,1965
Received from Economy Stations, Inc.
Address Spokane, Washington Three thousand and no/100 dollars $3000.00 For Retainer for all attorneys’ fees and expenses on pre-trial matters, Tidewater v. Economy Stations Caruso & Spinelli /s/ F. M. Spinelli.

On this occasion the plaintiffs also assured the officers and defendant corporation that in the absence of any settlement before trial they did not intend to demand any additional *506 retainer fee. In addition, the plaintiffs stated to defendant’s officers that if the case was concluded without trial the balance of their fee would be based upon the nature of the settlement and primarily upon the results or benefits obtained for the defendant, but if the case proceeded to trial the balance of their fee would likewise depend on the outcome of the trial, i.e., on the results or benefits obtained for the defendant, but if judgment was entered against the defendant in any substantial amount, the plaintiffs would abide by and be guided by the Bar fee schedule and would charge the regular daily trial fee.

Four depositions were taken on August 11, 1965. Tidewater later served notice that five more depositions would be taken, the first to be in Seattle on September 17, 1965. The case was set for trial for September 29, 1965. The deposition was taken in Seattle by Spinelli. After it had been completed the president and secretary of the defendant corporation told Spinelli to settle the case without delay for another business arrangement hinged upon early settlement of the dispute with Tidewater. Spinelli was given the terms defendant would like to receive and also told to “get your own attorneys’ fees.” Spinelli immediately replied that Tidewater would not pay defendant’s attorneys’ fees. Defendant’s secretary then said, “Well, just do the best you can.”

On September 22, 1965, plaintiff Soderquist represented the defendant in Portland during the taking of a deposition. On September 23, 1965, three depositions were taken in Los Angeles and Spinelli represented the defendant. After these depositions were taken Spinelli negotiated a settlement with Tidewater’s attorney, Mr. Cook. Spinelli proposed the exact terms given 'him by defendant’s officers with the exception that three trucks were to be appraised and Tidewater would purchase them at the appraised price, and, additionally, that Tidewater pay $25,000 in cash or reduce mortgages against the defendant by that much. Spinelli stated that this last request was made so that the defendant could pay the attorneys’ fees. The settlement was agreed to by Tidewater, but it did not agree to the cash *507 payment, however, it did agree to reduce the mortgages by $25,000.

Before the settlement was signed by defendant, the plaintiffs were fired and defendant’s officers concluded the settlement transaction with Tidewater.

In addition, we note the jury could find that no protest was made by defendant when $25,000 attorneys’ fees were demanded by the plaintiffs and no claim was ever made that plaintiffs had been paid in full until defendant served its answer in the instant case. The jury could conclude the conduct on the part of the defendant, in connection with all the evidence in the case, including defendant’s request that Spinelli attempt to get attorneys’ fees from Tidewater, is inconsistent with its theory that the $3,000 paid on August 11,1965, was payment in full.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

State v. Lopez
147 Wash. 2d 515 (Washington Supreme Court, 2002)
Davidson v. Municipality of Metropolitan Seattle
719 P.2d 569 (Court of Appeals of Washington, 1986)
Szupkay v. Cozzetti
678 P.2d 358 (Court of Appeals of Washington, 1984)
Petersen v. State
671 P.2d 230 (Washington Supreme Court, 1983)
Egede-Nissen v. Crystal Mountain, Inc.
606 P.2d 1214 (Washington Supreme Court, 1980)
In Re Marriage of Lukens
558 P.2d 279 (Court of Appeals of Washington, 1976)
Lee v. Cloes
498 P.2d 323 (Washington Supreme Court, 1972)
Vaupell Industrial Plastics, Inc. v. Department of Labor & Industries
481 P.2d 577 (Court of Appeals of Washington, 1971)
Vaupell Indus. v. Dep't L. & Indus.
481 P.2d 577 (Court of Appeals of Washington, 1971)
Daniels v. Pacific Northwest Bell Telephone Co.
463 P.2d 795 (Court of Appeals of Washington, 1970)
Colonial Investment Co. v. Kuhnhausen
440 P.2d 975 (Washington Supreme Court, 1968)

Cite This Page — Counsel Stack

Bluebook (online)
429 P.2d 240, 71 Wash. 2d 503, 1967 Wash. LEXIS 972, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spinelli-v-economy-stations-inc-wash-1967.