St. Louis, S. F. & T. Ry. Co. v. Thomas

167 S.W. 784, 1914 Tex. App. LEXIS 762
Court of Appeals of Texas·Decided May 23, 1914·No. No. 7145·Published·Cited by 1 cases

Opinion

TALBOT, J.

We take the following statement of the-case, which seems to be correct, from appellant’s brief:

“On February 17, 1911, appellee, F. M. Thomas, instituted this suit against appellant, the St. Louis, San Francisco & Texas Railway Company,1 for damages for personal injuries •and injury to property. He in substance alleged that on February 2, 1911, he was driving along a street in the city of Sherman in a two-horse wagon drawn by a horse and a mule at a point where the same crosses the tracks of appellant; that appellant’s employes in charge of an engine near said crossing carelessly blew the whistle on the engine, scared the team, and, after seeing his position of danger, continued to blow the whistle, caused his team to run away, turn the wagon over, and injure him, and damaged and injured his wagon, harness, and -team; that he sustained damage in the aggregate sum of $20,009. On April 22, 1913, Hamp P. Abney and J. W. Hassell intervened in the case, alleging that they were practicing attorneys; that they had been retained by appellee, Thomas, to bring his suit against appellant, and for their services and as compensation Thomas had assigned to them an undivided one-half interest in his cause of action ; they set up substantially the same facts as those alleged by Thomas as to the cause of action alleged; that, since the institution of the suit, appellee, Thomas, and appellant had effected a settlement of the suit, but, at the time that the same was made, that appellant had notice of their assignment, and asked to prosecute the cause of action as to their one-half interest in the same, and alleged dapaages in the sum of $10,000. Appellant, as to the claims made in appellee, Thomas’ petition, after a general denial, alleged a settlement made on the 19th day of February, 1912, and alleged that it had paid off and satisfied any and all claims that appellee, Thomas, had against it, and asked to be discharged. In answer to the petition of interveners, appellant, after a general denial, pleaded contributory negligence on the part of appellee, Thomas, and further alleged that it never was indebted to appellee, Thpm-as, in any sum, but in order to avoid a vexatious and expensive law suit, after the institution of his suit, at the request of appellee, Thomas, on the 19th day of November, 1912, did compromise and settle said cause of action in full with said Thomas for the sum of $100 then and there paid, and asked to be discharged, with its costs. The cause was tried May 2, 1913, and resulted in a judgment and verdict in favor of interveners and against appellant for $541.66%. Appellant’s motion for new trial was overruled, and it assigned error and sued out writ of error and brings the cause to this court for review.”

Tb© first assignment of error complains of the court’s refusal to give the following special charge requested by appellant:

“The evidence in this case discloses that, prior to the institution of this suit, plaintiff employed interveners to institute and prosecute this suit against defendant, and agreed to give them one-half of the amount recovered in said suit, and that, subsequent to the institution of this suit, plaintiff settled this suit with defendant for the sum of $100; you are therefore instructed that in no event are interveners entitled to recover more than one-half of the amount of said settlement, and if, under the instructions herein, you find for interveners, you will return a verdict in their favor for $50.”

[1,2] Two propositious are propounded under this assignment:

“(1) That, under the contract between Thomas and interveners, the latter were only entitled to one-half of the amount collected by Thomas >in the settlement made with appellant; (2) in an assignment of a cause of action, or a part thereof, founded on a personal injury by a client to his attorneys for future services in the maintenance of litigation, the client is without power, on grounds of public policy, to deprive himself of the right to compromise and settle same, and, when such compromise and settlement is made by the client, his attor- «- neys are bound thereby.’.’

Under the allegations and proof, we think there was no error in refusing the special charge. Thomas having assigned one-half interest in his cause of action to 'interveners, and appellant having actual notice of such assignment, the settlement made by him with appellant, interveners not being parties to such settlement, affected only his one-hajf interest in the original cause of action, and interveners could prosecute the original suit to a conclusion for the one-half interest assigned to them. Thomas, under the circum- ■ stances, could only settle his one-half interest in said cause of action, and interveners’ right of recovery was not limited to, and they were not compelled to accept, one-half of the amount for which Thomas settled. Whether Thomas had assigned to interveners one-half interest in his cause of action [786] against appellant was an issue raised by tbe pleadings and evidence and fairly submitted for tbe determination of tbe jury, wbo decided sucb issue favorable to interveners. Tbe assignment by Tbomas of one-balf interest in bis cause of action to interveners, and by wbicb be deprived bimself of tbe right to compromise and áfettle so much thereof as was embraced in sucb assignment, is not, under tbe law of this state, void on tbe ground of public policy. Where sucb an assignment has been made tbe assignor and assignee, each have a right to compromise and settle bis interest in tbe cause of action, and, if tbe assignor subsequently attempts to settle tbe entire cause of action without tbe knowledge or consent of the assignee, tbe assignee is not bound by sucb settlement, if tbe party against whom tbe cause of action exists bad notice of tbe assignment. Tbe following authorities, among others, sustain tbe views we have expressed: Railway Co. v. Vaughan, 16 Tex. Civ. App. 463, 40 S. W. 1065; Railway Co. v. Miller, 21 Tex. Civ. App. 609, 53 S. W. 709; Railway Co. v. Andrews, 28 Tex. Civ. App. 477, 67 S. W. 923; Railway Co. v. Carlock & Gillespie, 33 Tex. Civ. App. 202, 75 S. W. 931; Powell v. Railway Co., 78 S. W. 975. Tbe instant case is unlike tbe case of Railway Co. v. Ginther, 96 Tex. 299, 72 S. W. 166, 167, cited by appellant, and is not ruled thereby. In Gintber’s Case the instrument executed by him, after reciting that be bad employed Patterson & Buckler to bring suit upon bis cause of action against tbe railway company, declared that be assigned to them one-tbird of whatever “may be recovered in said suit or by way of compromise,” and tbe Supreme Court, in construing this contract, said:

“The instrument plainly expressed the intention to assign an interest in a cause of action of which a judgment or compromise was to be the measure, and the expression of this intention, in any language, was all that was required to make an assignment, as contradis-tinguished from a mere agreement to pay so much as a contingent fee.”

In tbe case at bar Tbomas not only agreed to pay interveners one-balf of the amount recovered or collected on bis claim, but assigned to them one-balf interest .in bis cause of action against appellant. In sucb case we think tbe law is as above stated, and that tbe assignment is not invalid on tbe ground that it is against public policy.

Tbe third assignment, complaining of tbe fifth paragraph of tbe court’s charge, raises the same question of law just discussed, and what we have already said disposes of it against appellant.

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St. Louis, S. F. & T. Ry. Co. v. Thomas, 167 S.W. 784, 1914 Tex. App. LEXIS 762 (Tex. Ct. App. 1914).

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