St. Louis S. F. R. Co. v. Leger Mill Co.

1916 OK 203, 155 P. 599, 53 Okla. 127, 1916 Okla. LEXIS 372
CourtSupreme Court of Oklahoma
DecidedFebruary 15, 1916
Docket4933
StatusPublished
Cited by4 cases

This text of 1916 OK 203 (St. Louis S. F. R. Co. v. Leger Mill Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
St. Louis S. F. R. Co. v. Leger Mill Co., 1916 OK 203, 155 P. 599, 53 Okla. 127, 1916 Okla. LEXIS 372 (Okla. 1916).

Opinion

KANE, C. J.

This was an action, commenced by the defendant in error, plaintiff below, against plaintiff in error, defendant below, for the purpose of enforcing a compromise and settlement which, it was alleged, was agreed upon by counsel for the respective parties in an action for damages between the same parties, theretofore pending in the United States District Court for the Western District of Oklahoma. Upon trial to a jury there was verdict for the plaintiff, upon which judgment was duly rendered, to reverse which this proceeding in error was commenced.

Hereafter the parties will be designated “plaintiff” and “defendant,” respectively, as they appeared in the trial court.

The grounds for reversal which we deem it necessary to notice in detail may be summarized as follows: (1) The trial- court erred in overruling the motion for a directed verdict in favor of said defendant; (2) the trial court erred in admitting certain incompetent, irrelevant, and immaterial testimony offered in behalf of said plaintiff ; (3) the trial court erred in giving to the jury certain instructions, over the objection of the defendant; (4) the *129 trial court erred in refusing to give certain instructions requested by the defendant.

As there seems to have been no serious controversy between the parties in the court below as to the general law governing the power of attorneys to compromise their clients’ cases, it is sufficient to say of the first assignment of error that we have examined the evidence contained in the record before us with care, and are of the opinion that it was sufficient to take to the jury the question whether Stevens, the local counsel of .the company in charge of the damage suit, was authorized by Kleinschmidt, its “attorney for Oklahoma,” to compromise and settle the same, and whether Stevens and Kleinschmidt were clothed with the power they assumed to exercise. In this court counsel for defendant contend that a general employment of a lawyer by a corporation to act for it in all legal matters is 'different from a special employment in a particular matter, and cite in support thereof the following authorities: Vogemann v. American Dock & Trust Co., 131 App. Div. 216, 115 N. Y. Supp. 741, affirmed in 198 N. Y. 586, 92 N. E. 1105; Cochburn v. Commercial Men’s Ass’n, 163 Iowa, 28, 143 N. W. 1006; Cross v. A., T. & S. F. Ry. Co., 141 Mo. 132, 42 S. W. 675. As the trial court seems not to have recognized a difference, but submitted the case to the jury under the general rule, which was more favorable to the defendant, it is not necessary to pass upon that question in this case. In the case of Railroad v. Scott, 72 Tex. 70, 10 S. W. 99, 13 Am. St. Rep. 758, where the general rule, as in the trial court in the case at bar, was applied to a railroad case, it was held:

“While an attorney, by virtue of his employment, has not authority to make a compromise of an action he is employed to prosecute or defend, it is' not to be presumed, *130 when one so situated assumes the right to exercise such a power, and does exercise it, that this was done without lawful authority; and but slight evidence, in such a case, may be sufficient to authorize the belief that he was clothed with all the power he assumed to exercise.”

This seems to us to be a just and reasonablé view to take of the evidence in examining it for the purpose of determining whether the trial court erred in overruling the motion of the defendant for a directed verdict.

Under its next. assignment of error, the defendant complains of instruction No. 6, which reads as follows:

“You are further instructed that a compromise and settlement, when full and complete and clearly made, operates as a merger of and bars all right to recover on all claims and causes of action included therein, and the rights of the parties are thereafter fixed and limited by the compromise and agreements made and accepted by and between the parties to said compromise, and where one of the parties to said compromise purposes to accept an amount less than the full amount claimed by him, and the other party to said compromise accepts such proposition and agrees to pay such sum as a compromise and settlement of the controversy, such proposition and acceptance constitute a valid contract and agreement between the ■ parties which may be enforced the same as other agreements.”

The ground of complaint is that this instruction was not predicated upon any issue in the case raised by the pleadings. It seems to us that this position is wholly untenable. The theory of the plaintiff’s case is that it .made a settlement and compromise with the defendant, which the defendant thereafter declined to carry out. Whether there was a settlement or not was the identical issue in the case, and the purpose of the instruction was *131 merely to inform the jury as to the law governing the effect of a compromise, if they found from the evidence that a compromise had been agreed upon. This certainly is unobjectionable. Under the' same assignment of error the defendant also complains of instruction No. 8, which reads as follows:

“You are further instructed that if you find from a preponderance of the testimony that the attorney who acted for the defendant in making said settlement and compromise (if you find that such compromise and settlement was made), had acted as attorney and agent on behalf of the defendant in making various other settlements and compromises on behalf of the defendant, and that such settlements had been accepted and paid by the defendant, and that the plaintiff or its authorized attorneys knew of such relation, acts, and authority of the said attorney for the defendant in making such settlements and compromises, the plaintiff would, in that case, have a right to rely upon the authority of such attorney to make such compromise, and the authority of such attorney for the defendant would be presumed, unless the plaintiff had been notified to the contrary.”

On this instruction counsel say in their brief:

“Plaintiff pleads that the alleged contract of settlement was made by virtue of special authority from Mr. Kleinschmidt, and admits that Mr. Stevens did not have authority to make settlement. Therefore evidence respecting other settlements made by Mr. Stevens was incompetent, and the instruction of the court submitting that issue to the jury was erroneous. * * * The instruction is fatally defective and erroneous, in that the jury was instructed that the authority of the defendant’s attorney to make the settlement would be presumed, if they found that he had acted as agent for the defendant in making other settlements.”

*132 The evidence discloses that the alleged settlement was-made in substantially the following manner: Stevens, the local counsel for the road, in charge of the case in which the settlement was pending, admittedly had no authority to enter into a compromise for his client.

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

Related

Southern Surety Co. v. Gilkey-Duff Hardware Co.
1933 OK 498 (Supreme Court of Oklahoma, 1933)
Othenin v. Theimer
1924 OK 873 (Supreme Court of Oklahoma, 1924)
Chicago, R. I. & P. Ry. Co. v. Waldo
1923 OK 139 (Supreme Court of Oklahoma, 1923)
Chowning v. Ledbetter
1922 OK 224 (Supreme Court of Oklahoma, 1922)

Cite This Page — Counsel Stack

Bluebook (online)
1916 OK 203, 155 P. 599, 53 Okla. 127, 1916 Okla. LEXIS 372, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-louis-s-f-r-co-v-leger-mill-co-okla-1916.