State v. Johnson

128 N.W. 837, 149 Iowa 462
Supreme Court of Iowa·Decided December 13, 1910·Published·Cited by 14 cases

Opinion

Sherwin, J.

Ten accusations were made against the defendant, and seven1’of them were sustained. The first charged extortion and dishonesty in connection with his employment by Mrs. Martha Haukedahl,- and was based on the following facts: Mrs. Haukedahl was a widow sixty-four years old who supported herself by manual labor. Her son had been killed on the track of the Chicago, Milwaukee & St. Paul Railway Company, and in April, 1909, she wrote the company in relation to his death and her claim for damages on account thereof. The company answered this letter denying liability, but offering to pay her $250 as a matter of charity if she would release all further claim,. etc. Acting on the advice of a friend, Mrs. Haukedahl went to the defendant with this letter and employed him [464] to secure a better settlement with the railway company, if possible. The defendant lived in Decorah, and Mrs. Ilaukedahl in Calmar, and about a week after Mrs. Haukedahl’s visit to him the defendant called on her at her home in Calmar and secured from her $350 in cash for his prospective services. He at that time gave her a receipt which recited that the money was received as a retainer “to make an effort to get settlement” with the railway company. About a week still later, the defendant passed through Calmar on his way to Chicago, and while there he induced Mrs. Haukedahl to sign an agreement femploying him “to consult the proper officers” of the railway company “for the purpose of effecting a compromise” for damages, and, as compensation for services rendered and to be rendered in compromising said damages, t'he said party of the first part hereby agrees to pay as a retainer therefor the sum of $350. The contract further provided that Johnson should go to Chicago to consult the company’s claim agent, and that the retainer was paid for services and expenses in “attempting to compromise and settle, . . . whether anything can be obtained on compromise and settlement or not.” The contract expressly provided that no action for damages was to be commenced for the retainer paid, and that Johnson might settle for any amount he liked and bind Mrs. Haukedahl by his receipt therefor. A short time after this contract was signed, the railway company, through its claim agent, in a letter sent to Johnson, offered to pay Mrs. Haukedahl $600 in full settlement of her claim. She accepted the offer and received the money, and the defendant kept the $350 that he had received from Mrs. Haukedahl.

The demand for $350 in advance of services performed and the contract were unconscionable. The rapacity of the defendant in dealing with this woman is unparalleled, except by another one of his alleged contracts to which we shall again refer later on in this opinion. Mrs Haukedahl [465] is a Norwegian woman with but an imperfect understanding of the English language. In fact, she went to the defendant for legal advice and assistance because of the fact that he talked and understood her native language and because of her inability to speak and understand English. She knew nothing of legal procedure, or of legal terms, and did not understand the import and meaning of the receipt given her for the $350, nor did she understand the contract that she afterwards signed. This contract gave the defendant absolute power to settle for any sum, and it provided that he should keep the money already paid to him, no matter whether he secured a dollar from the company or not. As a matter of fact, the defendant secured from his client and retained $350 for getting her $250, the amount that had already been offered her by the company. The appellant says that the charge can not be sustained because no demand was made on him, as provided by Code, section 330. The section cited has no applicability to a transaction of this kind.

The facts concerning the second accusation against the defendant are as follows: He was employed by Gertrude Nesheim to represent her in a settlement and an accounting between herself and Neis B. Lee, both Norwegians. The defendant spent a part of a day .in bringing about a settlement. When it was agreed upon, Gertrude Nesheim executed a written promise to pay Lee $500 within a short time thereafter, which agreement the defendant retained in his possession without any authority for so doing. The amount was soon thereafter left with Johnson to be paid over to Lee. Johnson deducted $50 therefrom for his services against the earnest protest of Lee and gave Lee the rest of the money. Johnson also charged Gertrude Nesheim $100 for his service in the same transaction. That' Lee had not employed the defendant, and that the defendant did not in any way represent him in the transaction or settlement, is clear. It is equally as clear that the defend[466] ant took the note without authority from Lee; that it was voluntarily paid by the maker; and that the defendant had no right or authority to receive the money as the agent of Lee. The retention of $50 of the amount was therefore without a shadow of right.

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State v. Johnson, 128 N.W. 837, 149 Iowa 462 (iowa 1910).

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