State v. Nix

66 So. 230, 135 La. 811, 1914 La. LEXIS 1854
CourtSupreme Court of Louisiana
DecidedJune 29, 1914
DocketNo. 20544
StatusPublished
Cited by9 cases

This text of 66 So. 230 (State v. Nix) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Nix, 66 So. 230, 135 La. 811, 1914 La. LEXIS 1854 (La. 1914).

Opinions

LAND, J.

This is a suit to disbar the defendants for alleged professional misconduct in the matter of the sale and purchase of a judgment for $5,052.47 rendered by the Supreme Court in .favor of their client, Ferdinand Francois, in his suit against the Mai-son Blanche Comx>any for damages for personal injuries. . See Francois v. Maison Blanche Realty Co. et al., 134 La. 215, 63 South. 880. The judgment of the Supreme Court was rendered on November 3, 1913, [814]*814and a rehearing was denied on January 5, 1914.

A few hours after the judgment was rendered, Francois assigned and transferred all his right, title, and interest therein to Lawrence T. Kirn, for the purported consideration of $1,000, paid in lawful current money of the United States. As a matter of fact Francois received Kirn’s check for $800, and his verbal promise to pay $200 to Francois’ doctors. When the check was presented on the next day, payment was refused by the hank, as per instructions of Kirn. Francois’ employer, accompanied by counsel, called on Nix and Kirn for an explanation of the transaction, and the result was the surrender of the deed of assignment by Kirn, and the return to him of the dishonored check.

The apparent sale by Francois of his half Interest in the judgment for $5,052.47,’ for the small price of $800, with the approval of his counsel of record, naturally excited unfavorable comments, which led to an investigation of the facts before the disbarment committee appointed by this court. Several hearings were had before said committee, which found that Kirn was an interposed party procured by the defendants and purchasing, not for himself, but for their benefit. The committee further found that the defendants did not inform Francois that Kirn was an interposed party, but agreed to keep this knowledge from him, and advised and induced their said client to sell said judgment for a vile price, which he did, in ignorance of the fact that his own attorneys were the real purchasers.

We have heard the witnesses in open court, and after considering the. evidence have reached the same conclusions of fact.

Nix was the leader in the scheme to acquire for himself and associates the half interest of their client in the judgment rendered by this court. The Teissiers, without •demur, aided and assisted Nix in the procurement of the assignment of the judgment to Kirn, an intimate friend of Nix, who was ready and willing to assist him financially and otherwise.

Kirn broke up the deal by stopping payment of the check for $800, which he had given Francois. Whether,Kirn acted from conscientious scruples, or because the Teissiers failed to furnish their half of the price, need not be determined. Nix’s claim that he instructed Kirn to declare the deal off is denied by Kirn, and, even if true, is a mere palliating circumstance.

[1] Ignorance of law, or error of judgment, as to defendants’ right, to purchase the judgment in question, was urged at the bar.

The codal provisions as to litigious rights are as follows:

“Public officers connected with courts of justice, such as judges, advocates, attorneys, clerks and sheriffs, cannot purchase litigious rights, which fall under the jurisdiction of the tribunal in which they exercise their functions, under penalty of nullity, and of haying to defray all costs, damages and interest.” Civil Code, art. 2447.
“He against whom a litigious right has been transferred may get himself released by paying to the transferee the real price of the transfer, together with the interest from its date.” Civil Code, art. 2652.
“A right is said to be litigious whenever there exists a suit and contestation on the same.” Civil Code, art. 2653.
“The provisions of article 2652 do not apply:
“1. When the transfer has been made either to a co-heir or to the co-proprietor of the right.
“2. When such right has been transferred to a creditor as a payment of a debt due to him.
“3. When the transfer has been made to the possessor of the estate subject to the litigious right.” Civil Code, art. 2654.
“Litigious rights are those which cannot be exercised without undergoing a lawsuit.” Civil Code, art. 3556, No. 18.

The Code from motives of public policy, prohibits attorneys at law from purchasing litigious rights. Copley v. Lambeth, 1 La. Ann. 316; Morris v. Covington, 2 La. Ann. 259; Copley v. Moody, 2 La. Ann. 487.

[2] In Watterston v. Webb, 4 La. Ann. 173, where an attorney had purchased a judgment pending an appeal,-the court said;

[816]*816“The plaintiff had no connection with the litigation between the bank and Webb, and the purchase seems to have been a fair one. Article 2422, which prohibits attorneys from purchasing litigious rights which fall within the jurisdiction of the courts before which they practice, under the penalty of nullity and the payment of all the costs, damages, and interest, is imperative, and the district judge did not err in giving it effect.”

In Pipes v. Norsworthy, 25 La. Ann. 557, it was held that a purchase by an attorney of an interest in a judgment sought to be enforced was a nullity, because it was the sale of a litigious right.

Both of these decisions were affirmed in Buck & Beauchamp v. Blair & Buck, 36 La. Ann. 20, in which it was held that a judgment against which an action in nullity was pending was a litigious right, and that the transfer of an interest in such judgment to an attorney in part payment of fees was a nullity, because prohibited by article 2447 of the Civil Code. See, also, Denny v. Anderson, 36 La. Ann. 762, where an attorney purchased all of plaintiff’s rights in a pending suit.

[3] Act No. 124 of 1906 goes no further than to permit attorneys to acquire, by written .contract signed by the client, as their fee, an interest in the subject-matter of the suit. As shown by the context, the purpose of this provision was to prevent clients from beating their attorneys out of their fees, by compromising with defendants before judgment.

[4] In the case at bar there was no written contract transferring an interest in the suit for the stipulated contingent fee of 50 per cent. Article 2652 refers to sales of litigious rights permitted by law, and article 2654 exempts a coheir or a coproprietor from its provisions.

It follows that the purchase by defendants of the judgment in question was an act plainly prohibited by article 2447 of the Civil Code, and as such was reprehensible on the part of the attorneys. Defendants’ conscious- ■ ness of the impropriety of their conduct was indicated by the concealment from their client of their interest in the purchase.

Being the real purchasers, their interest conflicted with the interest of their client, and therefore they were morally unfit to advise him in the transaction.

The advice they gave to their client was perfunctory and made no impression on his understanding.

The assignment, which was dictated by one of the defendants, contains the following recitals:

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Bluebook (online)
66 So. 230, 135 La. 811, 1914 La. LEXIS 1854, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-nix-la-1914.