St. Louis Southwestern Railway Co. v. Terral

11 S.W.2d 763, 178 Ark. 475, 1928 Ark. LEXIS 486
Supreme Court of Arkansas·Decided November 26, 1928·Published·Cited by 1 cases

Opinion

Humphreys, J.

This is an appeal from a judgment rendered in favor of appellee in the Pulaski Circuit Court, Third Division, for $1,500 on an intervention filed by him to enforce a lien under the attorneys’ lien statute, against the proceeds of a judgment rendered in said court in a friendly suit brought by Mrs. J. E. Armstrong, as the administratrix of the estate of her husband, J. E. Armstrong, for the benefit of herself as a widow and the next of kin, against appellant, to recover damages for injuries received by him while in its employ, which caused his death. Appellee predicated his right to a lien on the proceeds of the judgment upon allegations that he had entered into a written contract with Mr. and Mrs. J. E. Armstrong to bring suit; that, after the death of J. E. Armstrong, he obtained the appointment of Mrs. J. E. Armstrong as the administratrix of the estate of her deceased husband in order to bring- the suit; and that he subsequently broug-ht the suit for her in her representative capacity ag-ainst appellant in the circuit court of Calhoun County, which suit was removed to the Federal court at El Dorado, and afterwards dismissed' by her without his consent. The written contract of employment was made an exhibit to the complaint, and is as follows:

“This contract, made and entered into by and between Terral & Cruce, a firm of lawyers of the city of Little Rock, Arkansas, parties of the first part, and J. E. Armstrong land wife, parties of the second part, witnesseth:

“That whereas the said J. E. Armstrong was injured by the Cotton Belt Railroad Company on August 26,1927, and is desirous of prosecuting his claim for damages against said Cotton Belt Railroad Company for damages arising from said injuries, and that said parties of the second part, by this contract, employs said parties of the first part to represent them and prosecute their claims, and agree to pay them as their fee one-half of the amount recovered, either by litigation or compromise settlement. It being understood that no compromise or settlement shall be made without the consent and approval of said parties of the second part; and parties of the first part, upon their part, hereby agree to prosecute said case through all courts necessary, using their very best skill and ability, for a fee as above stated.

“Witness our hands and seals on this, the 7th day of September, 1927.

“Terral & Cruce,

“Parties of the first part.

“J. E. Armstrong,

“Mrs. J. E. Armstrong,

“Parties of the second part.”

On motion of appellant, C. M. Cruce, who signed the contract with appellee, was made a party to the intervention, and prayed and filed a disclaimer alleging that he was not a lawyer but merely a law student in Terral’s office, and that the contract was signed “Terral & Cruce” solely at the instance oif J. E. Armstrong, who desired the contract drawn in that manner, as Cruce was a friend of his and was familiar with the investigation of Armstrong’s injury. He was dismissed as a party, and the cause proceeded thereafter in the name of Tom J. Terral as intervener.

Tom J. Terral testified that, after Ms employment, lie made investigations and gathered facts preparatory to bringing the suit, and after the death of J. E. Armstrong he .carried on negotiations with appellant’s claim agent in an effort to make a settlement with the knowl- • edge of Mrs. Armstrong; that she and members of her family came to his office and discussed the case with him; that, after a failure to settle with the claim agent, he informed Mrs. Armstrong it would be necessary to administer upon the estate of her husband to enable him to file a suit, and advised that she. take out letters of administration ; that she consented, and he obtained her appointment as administratrix for the purpose of bringing the suit; that he thereafter filed a suit for her in her representative capacity in the circuit court of Calhoun County against appellant to recover $60,000 damages on account of the injuries received by her husband while in its employ, which resulted in his death; that, on motion of appellant, the suit was transferred to the Federal court at El Dorado, and during the pendency thereof he learned that a settlement had been effected, and filed an intervention for his fee, praying that same be declared a lien upon the proceeds of the settlement agreed upon, but that his intervention was dismissed for the want of jurisdiction, and without prejudice to him; that on the afternoon of November 22, 1927, he received a letter from Mrs. Armstrong, - discharging Mm, upon the alleged ground that she had no authority, as administratrix of the estate of her husband, to employ a lawyer to represent her or his estate in a suit to recover damages for the injuries received by him while in appellant’s employ, and that the contract of employment signed by her had no legal value or in any way bound her as administratrix of the estate of her deceased husband.

Mrs. Armstrong testified that, although she knew Mr. Terral was handling the case after her husband died, she never employed him to do so, and when he had her appointed administratrix he informed her that it was for the purpose of administering on her husband’s estate, and did not telpher that it was for the purpose of bringing suit; that she never authorized him to bring suit, and did not know that he had brought a suit until after she wrote him a letter informing him that she was not bound by the contract of employment signed by herself- and husband, and requesting him to return his copy of the contract to her.

The record reflects that the letter she wrote to Terral was dictated by her pastor, Dr. Glenn E. Green, with the assistance of the claim agents of appellant company and the Missouri Pacific -Railway Company, all of whom participated in the settlement or compromise of the claim with Mrs. Armstrong, without consultation with Terral. Pursuant to the compromise agreement she received $3,000 for the benefit of herself as widow and next of kin, and $575 for the benefit of the estate. She after-wards dismissed the suit pending in the Federal court, and brought this -suit for the purpose of effectuating the settlement she had made with appellant.

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

St. Louis Southwestern Railway Co. v. Terral, 11 S.W.2d 763, 178 Ark. 475, 1928 Ark. LEXIS 486 (Ark. 1928).

11 S.W.2d 763 (St. Louis Southwestern Railway Co. v. Terral) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Arkansas Foundry Company v. Poe
26 S.W.2d 584 (Supreme Court of Arkansas, 1930)