State Ex Rel. Oklahoma Bar Ass'n v. O'Bryan

1963 OK 151, 385 P.2d 876, 1963 Okla. LEXIS 495
CourtSupreme Court of Oklahoma
DecidedJune 18, 1963
DocketS.C.B.D. 1792
StatusPublished
Cited by11 cases

This text of 1963 OK 151 (State Ex Rel. Oklahoma Bar Ass'n v. O'Bryan) 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
State Ex Rel. Oklahoma Bar Ass'n v. O'Bryan, 1963 OK 151, 385 P.2d 876, 1963 Okla. LEXIS 495 (Okla. 1963).

Opinion

WILLIAMS, Justice.

The question to be determined.herein is whether this Court will approve a report of the Oklahoma Bar Association and follow its recommendation that respondent be disbarred from practicing law.

This matter was first brought to the attention of the Bar Association when a Judge of the Federal Court for the District including Oklahoma City, on November 12, 1958, wrote a letter to the Bar concerning respondent’s conduct for which he has been barred from further practice in that court.

Respondent had, on March 24, 1958, filed a “proof of debt” in the case of the Bankruptcy of Selected Investments Corporation and Selected Investments Trust claiming that Selected owed him $1,194,*- *878 027.02 for the reasonable value of legal services performed at the bankrupt’s request, most of which allegedly became due on November 18, 1957, and the balance shortly thereafter, and that he had received no sort of security or note or other evidence of the existence of the indebtedness. An exhibit attached to the claim asserted entitlement to 10% of certain tax savings to Selected.

Respondent had thereafter and on May 21, 1958, filed an amended proof of debt asserting that the debt claimed was “based upon an oral contract which was reduced to writing on October 29, 1954,” and “further evidenced by a memorandum agreement dated May 17, 1957,” and had attached copies of these two letters as exhibits.

On or about March 3rd to 7th, 1958, and before filing that original claim, respondent had talked by telephone to the Trustee in Bankruptcy and had been told by him that Mr. Carroll’s testimony would not be very good to support an oral contract. It was after that (and within some two months from the time of filing of his original claim as above noted) that respondent “found” the purported written contract hereinafter described.

In the hearing before the Trial Examiner from which arose the recommendation presently under consideration herein, the Trustee in Bankruptcy testified repeatedly that respondent called him on the telephone different times after he had been designated as such Trustee and told him that respondent had an oral contract for fees; that it stuck in the trustee’s mind immediately that respondent had been operating for a number of years under an oral agreement to represent someone; that he told respondent he would have been better off if he had had a written contract; that he did not instruct respondent “prior to his filing an original claim that it would be much easier for him to have a written contract as distinguished between an oral contract.”

Respondent wrote the Trustee in Bankruptcy on March 10, 1958, and before filing his original claim, a thirty-two page letter in explanation of his claim soon to be filed. Therein, (page 4), he stated:

“Inasmuch as neither the officials of the company or ourselves could foresee the extent of the difficulties with which we might be confronted, no agreement could be reached as to the legal fees to be charged. It was understood that our compensation would be based upon a ‘reasonable fee’ which would be contingent, to some extent, upon' the results accomplished.
“I explained to Mr. Carroll that I could not abandon my practice, which had been built over a period of many years, for the sake of any one client; also, that I could not, under the circumstances, determine what would be a reasonable retainer.
“The question of the legal fees to be charged was held in abeyance to be determined, when the results were in, on a reasonable basis with the understanding that in the interim Selected would from time to time allow us reasonable advances, in the form of retainer, to assist us in carrying the costs of our office and correspondingly the cost of carrying on this litigation.”

On page 14 of that letter Mr. O’Bryan listed specifically the dates of some 12 or 15 conferences with taxing authorities. On page 22 of that letter he stated:

“We maintain an I.B.M. punched card system and will be able to furnish you with a tabulation of the number of hours devoted to this task. It is my estimation that the time devoted to the Selected tax matters will be in excess of 8,000 hours.”

Referring to the Oklahoma State Income Tax angle of Selected’s business, on page-28 of that letter, Mr. O’Bryan wrote:

“The fee arrangement in this matter was similar to that in the federal case. In other words, our compensation was. to be a ‘reasonable fee’ based upon the: results attained.”

*879 Yet he made no mention of the purported letter-agreement of October 29, 1954, in such entire letter of March 10, 1958, to the Trustee in Bankrupcty.

In that same letter of March 10, 1958, to the Trustee in Bankruptcy, to which reference was above made, respondent, at pages 22 and 23 thereof quoted two paragraphs from Am.Jur., Vol. 5, Attorneys at Law, IX, Compensation of Attorneys, E, Measure of Compensation or Recovery, § 198, Under Implied Contract, of effect as follows:

(That) “In the absence of an express contract of employment between an attorney and his client fixing the amount of the attorney’s compensation, it is generally held that the attorney is entitled to what his services are reasonably worth, or what has usually been paid to others for similar services. The determination of this depends largely upon the circumstances of the particular case; * * * ”

and listing numerous circumstances to be considered in fixing amount of an attorney’s fee. On page 31 of that letter he stated that that “quotation * * * eloquently set forth the basis upon which our claim for ‘reasonable compensation’ is based."

As noted above, respondent herein was the claimant in the Selected Bankruptcy case. His claim came on for hearing in the Federal Court on November 3, 1958. A special master had been appointed in the case. However, the Judge of the Court recessed a jury trial and heard the matter personally. Respondent was given an opportunity to testify concerning the validity of his amended claim and the trustee in bankruptcy, who had been appointed by such Court, contested the validity thereof.

The letter of October 29, 1954, being complainant’s Exhibit 23 herein and plaintiff’s Exhibit No. 36 in the Federal Court Proceeding wherein respondent sought to establish his claim as amended, and which was attached to his amended proof of debt as Exhibit “B” is as follows:

“Law Office of
“O’Bryan And O’Bryan
“Hightower Building
“Oklahoma City, Oklahoma
“CEntral 2-6151
“W. H. Pat O’Bryan October 29,1954
“W. Howard O’Bryan, Jr.
“Donald L. O’Bryan CONFIDENTIAL
“Mr. Hugh A. Carroll/ 312 Park Avenue Oklahoma City, Oklahoma
“Dear Mr. Carroll:

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Bluebook (online)
1963 OK 151, 385 P.2d 876, 1963 Okla. LEXIS 495, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-oklahoma-bar-assn-v-obryan-okla-1963.