State v. Markey

49 N.W.2d 437, 259 Wis. 527, 1951 Wisc. LEXIS 382
CourtWisconsin Supreme Court
DecidedOctober 9, 1951
StatusPublished
Cited by8 cases

This text of 49 N.W.2d 437 (State v. Markey) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Markey, 49 N.W.2d 437, 259 Wis. 527, 1951 Wisc. LEXIS 382 (Wis. 1951).

Opinion

Per Curiam.

In 1944 George T. Wolfer, Sr., was engaged in the business of selling stainless-steel cookware. In October of that year he retained one of the defendants, J. Philip Markey, to organize a corporation for the purpose [530]*530of taking over and operating the business under the name of Lifetime Sales, Inc. The stock of the corporation was to be held by Wolfer and his wife, and by one Theodore N. Gould, at that time an employee of Wolfer, and his wife. The articles of incorporation were prepared by Philip, signed by the incorporators, and duly hied and recorded. Philip prepared the other papers necessary for the formation of the corporation but did not follow up to determine whether the action suggested in his prepared papers was ever taken.

In January, 1946, after Philip had performed some professional services for Wolfer, they entered into a written retainer arrangement by the terms of which Philip was to serve as attorney for Wolfer and wife and the Lifetime Sales Corporation, for which he was to be paid $2,500 per year, partly in cash at that time and $200 per month on the first of each month thereafter. In August, 1946, a dispute arose between Wolfer and Gould and on August 12, 1946, the latter commenced an action against Wolfer, his wife, and the corporation, in which an accounting and the appointment of a receiver were demanded. An application for the appointment of a temporary receiver was denied, apparently because the judge of the court considered that all of the issues should be determined upon an early trial; accordingly, the case was set for trial on October 14, 1946, at 10 a. m.

Shortly after the commencement of the Gould case Philip informed Wolfer that he would probably have to be a witness in the case and that it would therefore be necessary that another attorney be engaged to try it; he suggested that his brother, Maurice, be retained for the trial.

The referee reported that Maurice was retained for the trial of the Gould action upon an arrangement that he was to be paid $200 forthwith and in addition, $200 at the completion of the case. Maurice denied that any definite arrangement as to fees had been made. Philip testified that the arrangement reported by the referee was made but that the [531]*531payments were to be considered as expense money. The two defendants conferred with Wolfer and his wife and spent several days preceding the trial date in preparation. Maurice testified that he spent every day from the middle of August until the middle of October on the case. Both defendants testified that they had spent approximately ten days previous to the trial in preparation.

During the week preceding the trial date Maurice, with the co-operation of Philip, prepared a contract which, after reciting certain facts as to. the previous relationship between the Wolfers and the Markeys, provided, for the retainer of Maurice as general counsel at a salary of $1,250 monthly for the period of one year. At the same time another paper was prepared by the Markeys by the terms of which it was proposed that the Markeys should be appointed agents for Wolfer and the corporation to finance, discount, sell, and otherwise dispose of evidences of obligation which Wolfer and the corporation might acquire in their business of selling merchandise. It was provided further that the Markeys should have access to the books and reports of Wolfer and the corporation; that they should have authority to sue for and receive and collect all accounts receivable, etc. The paper contained the provision that ninety per cent of the net profits to be acquired through such financing and discounting should be retained by the Markeys and ten per cent should go to Wolfer and the corporation. It provided further that it should continue in effect until October 10, 1956, unless earlier terminated by mutual consent. Nothing contained in either of these proposed agreements indicated an intent to terminate the retainer contract which Philip had previously obtained.

On either Thursday or Friday of the week preceding the Monday upon which the Gould case was to be tried the two papers were presented to Wolfer for execution, with the suggestion by the Markeys that he study them and submit [532]*532them, if he wished, to some other lawyer for examination. On Saturday defendants examined the records in Wolfer’s office, apparently for the purpose of trial. On Sunday Markeys called at the home of Wolfer where the latter informed them that he would not sign the contracts. The Markeys testified that they have no recollection that the contracts were discussed on this occasion. At the Sunday visit the Markeys told Wolfer to be available on the telephone the next forenoon but not to go to the courtroom. The reason assigned by them for this suggestion was that they wanted Gould’s story to be told upon the trial before Wolfer might be called upon to testify.

Both defendants appeared at the call of the calendar on Monday morning and the case was assigned to Judge Breidenbach for trial. Judge Breidenbach found himself unable to proceed until some time during the afternoon. The trial of the case was held in abeyance.

There is a sharp dispute with respect to a conversation between Wolfer and Maurice during the afternoon of Monday, the date set for trial of the case. Wolfer testified that in that conversation Markey insisted that the contracts prepared by the defendants be signed if Wolfer expected them to proceed with the trial. Markey’s testimony with respect to this conversation is to the effect that it concerned his opinion that the defense of the Gould case would be embarrassed unless an audit by an accountant were made to determine the amount of commissions owing Gould. Wolfer told him that he did not intend to engage an accountant and that in any event he would not pay Gould’s claim. Maurice testified further that in response to Wolfer’s statement he asked the latter whether he, Markey, should expect to be treated in the same manner for his services in the trial of the Gould case. Later on Monday afternoon Attorney Ploward Johnson called Maurice on the telephone and told him that he, Johnson, had been engaged by Wolfer to con[533]*533duct the trial of the Gould case. Markey made no objection to Johnson’s statement that he had been so retained. Johnson testified that Wolfer had shown him, apparently at Wolfer’s first visit to his office, the two contracts prepared just before the date set for the Gould trial. Johnson called Gould’s attorney on the telephone and asked him to appear with him at four o’clock of that afternoon before Judge Sullivan to discuss an application by Johnson for a continuance.

The referee in his report appears to doubt Maurice’s testimony that in the telephone conversation he had with Wolfer on Monday afternoon he had suggested that an auditor be employed. He appears to conclude that it was not necessary that an accountant be engaged but cites as one of the reasons for the lack of such necessity the fact that a Mr. Zippel, an employee of Wolfer, might readily be able to furnish the information which might be obtained from an accountant.

On October 16, 1946, two days after the Gould case had been set for trial, the Markeys appeared at the office of Attorney Johnson with Wolfer, and delivered either to Wolfer or to Mr. Johnson all of the files having to do with the Gould case which the Markeys had obtained possession of from Wolfer. At that meeting the Markeys asked Wolfer whether he had any complaint with respect to the manner in which the Markeys had handled the matter for him and he responded that he had not.

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Bluebook (online)
49 N.W.2d 437, 259 Wis. 527, 1951 Wisc. LEXIS 382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-markey-wis-1951.