Stahl v. Wadsworth

10 N.Y. St. Rep. 228
CourtSuperior Court of Buffalo
DecidedJuly 19, 1887
StatusPublished

This text of 10 N.Y. St. Rep. 228 (Stahl v. Wadsworth) is published on Counsel Stack Legal Research, covering Superior Court of Buffalo primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stahl v. Wadsworth, 10 N.Y. St. Rep. 228 (N.Y. Super. Ct. 1887).

Opinion

Hatch, J.

This action was commenced by the service of a summons and complaint in September, 1885. The defendants answered separately. Issue was joined by the service of a reply in January, 1886. Before issue was joined the parties settled, defendants paying to plaintiff the sum of $1,001, and by instrument under seal bearing date December 22, 1885, acknowledged that day, the plaintiff released, acquitted and discharged the defendants,, and each of them from all liability on account of the demands, and cause of action mentioned and set forth in the complaint. No notice of such settlement was given to the attorney for the plaintiff, by the defendants, nor was he advised from any source of such settlement until the spring of 1886. Since said settlement the defendant Wadsworth has served ■an amended answer in the fourth count of which he alleges he has paid and satisfied the claim of the plaintiff. The cause has been referred for trial and determination. On the 1th day of October, 1886, the defendants served upon the plaintiff’s attorney, a notice stating that the action had been [229]*229settled, that plaintiff had released the cause of action herein, and offered to pay said attorney his taxable costs and disbursements, and, also, offered to allow judgment to be entered against them for the amount of such costs and disbursements as adjusted. Said attorney refused to accept the same, and on the 9th day of January, 188Y, he served upon defendants a written notice that he had a lien upon the cause of action to the extent of sixty per cent thereof as compensation for his services in the action and that he should not recognize payment of that sum to any other person. No other notice than this was ever given. Thereafter defendants made a motion in this court, upon affidavits, and the papers and proceedings for an order discontinuing said action, upon the payment of the taxable costs and disbursements to plaintiff’s attorney. On the hearing of said motion the court ordered said action discontinued upon payment of costs and disbursements. Plaintiff appeals from said order to this court.

There are no facts stated in the opposing affidavits which tend in any manner to impeach the bonafides of the settlement. The statement that Wadsworth did not inform the attorney for the plaintiff until some time after the settlement does not tend to show fraud upon his part, or a design to cheat the attorney out of his costs. It appears that he knew nothing about the attorney’s lien during any of this time, or until the attorney served his notice of lien, which was sometime after, when defendants moved to give effect to said settlement, they offered to pay such costs as the law gave them notice that the attorney-was entitled to.

No bad faith can be predicated on this. The statement that Wadsworth would fight before paying to Lyon fails of the same purpose, besides it was mere hearsay and not entitled to be received. The same is true of the alleged statement made by plaintiff to Ensign. If the attorney desired to avail himself of it he should have embraced it in an affidavit made by plaintiff. In any event it was not shown that such statement, if made, was brought to the knowledge of defendants. The claim at the foot of the attorney’s affidavit that Wadsworth settled with full knowledge and in fraud of the attorney’s lien, is no statement of a fact, nor are there appearing, facts to sustain it.

The authorities which should determine this appeal are numerous and conflicting beyond hope of reconciliation. It seems, however, to be established that parties have a perfect right to settle suits, even though the attorney does not give consent, and an executed settlement is binding upon the parties to it. Coughlin v. N. Y. C. and H. R. R. R. Co., 71 N. Y., 443; Root v. Van Duzen, 32 Hun, 63.

Previous to the amendment of section 66, Code Civil [230]*230Procedure, an attorney’s lien only attached to the judgment obtained in the action, but it was broad enough to cover not only taxable costs but any agreed 'compensation between the attorney and client. Rooney v. Second Av. Ry. Co., 18 N. Y., 368.

, In the absence of notice of the attorney’s lien, a defendant acting in good faith had the right to pay the judgment to plaintiff, and was protected in so doing. Wright v. Wright, 70 N. Y., 98.

In the above case the court affirmed an order of the general term reversing an order of the special term, which set aside satisfaction of a judgment to allow the attorney to enforce the judgment for his costs and counsel fees.

These cases arose before the amendment of 1879, hut, unless the amendment has provided a new remedy for the enforcement of the lien, the doctrine decided possesses as much virtue as though no amendment had been adopted. The lien existed before amendment as well as after, but it did not extend to the cause of action. Wright v. Wright, 70 N. Y, 96.

The lien to the extent to which it had been carried was quite as effectual before as after the amendment. Section 66 does not in terms declare that such lien shall exist, even though a bona fide settlement be made without notice; it simply says it shall exist as to the cause of action; by enlarging the subject to which it shall apply, does not change any of the steps which were before necessary to make the lien effectual. In Jenkins v. Adams (22 Hun, 600), the general term, first department, upon a claim made that the amendment itself gave the notice, say, Doubtless it was intended to confer upon the attorney the same rights, with regard to the cause of action, as he had previously possessed with regard to the judgment. Now, it was always the rule that a special interest in the claim and judgment, could only be protected by notice. This rule is equally applicable to the new lien upon the cause of action created by the section in question.”

In McCabe v. Fogg (60 How. Pr., 488), the superior court of New York, Freedman, Judge, held that this amendment did not change the remedy for enforcing the lien from what it had previously been, with the single exception that it was not now necessary to show fraud.

In Tullis v. Bushnell (65 How. Pr., 465), the general term, New York common pleas, held that the practice was the same as before the amendment.

In Goddard v. Trenbath (24 Hun, 182), the general term, second department, held that a settlement made in good faith would be upheld, the defendant having no notice of the attorney's lien at the time of effecting the settlement.

[231]*231In WeMe v. Conner (83 N. Y., 231), Judge Finch in speaking of attorney’s liens, said: "Until such a lien is asserted by the party to it, the judgments are the property of the plaintiff; without notice of the claim the hen cannot be enforced.”

In Williams v. Ingersoll (89 N. Y., 508), Judge Earl writes that notice of the existence of the lien is only needful to defeat a subsequent bona fide payment made by the debtor, p. 522. Thus clearly implying that where the debtor had in good faith paid, a notice of the lien would be necessary, or he would be discharged from liabihty.

White v. Brady (4 N. Y. L. Bul., 39), holds that where the compensation agreed upon exceeds the taxable costs, notice to the opposite party is needful in order to protect the lien.

In re Bailey (4 C. Pro.

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Related

Wright v. . Wright
70 N.Y. 98 (New York Court of Appeals, 1877)
Williams v. . Ingersoll
89 N.Y. 508 (New York Court of Appeals, 1882)
Wehle v. . Conner
83 N.Y. 231 (New York Court of Appeals, 1880)
Rooney v. . Second Avenue Railroad Company
18 N.Y. 368 (New York Court of Appeals, 1858)
Coughlin v. . N.Y.C. and H.R.R.R. Co.
71 N.Y. 443 (New York Court of Appeals, 1877)
Marshall v. . Meech
51 N.Y. 140 (New York Court of Appeals, 1872)
Coughlin v. New York Central & Hudson River Railroad
71 N.Y. 443 (New York Court of Appeals, 1877)
Tullis v. Bushnell
12 Daly 217 (New York Court of Common Pleas, 1883)
McCabe v. Fogg
60 How. Pr. 488 (The Superior Court of New York City, 1880)

Cite This Page — Counsel Stack

Bluebook (online)
10 N.Y. St. Rep. 228, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stahl-v-wadsworth-nysuperctbuf-1887.