Stearns v. Wollenberg

92 P. 1079, 51 Or. 88, 1907 Ore. LEXIS 62
CourtOregon Supreme Court
DecidedDecember 31, 1907
StatusPublished
Cited by8 cases

This text of 92 P. 1079 (Stearns v. Wollenberg) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stearns v. Wollenberg, 92 P. 1079, 51 Or. 88, 1907 Ore. LEXIS 62 (Or. 1907).

Opinion

Opinion by

Mr. Commissioner Slater.

1. It was held by this court, in the case of Jackson v. Stearns, 48 Or. 25 (84 Pac. 798) that the facts alleged' were sufficient to make a prima facie case of defendant’s intention to deprive plaintiff therein of his compensation, thereby imputing to Wilson bad faith, but that because the contract was oral, and Jackson had not entered into possession of the land, he was not specifically able to enforce the terms of his agreement as against his client, and hence he could not have Wilson declared a trustee [91]*91holding the legal title for him, and could not maintain an independent suit to secure the relief sought on account of the alleged fraud. But it was there said that, by proceeding in the original suit against Wilson in the name of his client, Jackson might possibly have been able to recover compensation for his services if he could have obtained therein the decree specified in the contract, but, because of insufficiency of his contract with Stearns, he could not secure a cancellation of the deed executed by his client to Wilson. The same considerations, however, precluded the granting of any relief to plaintiff’s attorney in this suit, although a prima facie case of fraud has been shown, and although the suit was prosecuted to a successful termination by him in the name of his client, because, by the conveyance of the land by Stearns to Wilson, Jackson has not been divested of any right, legal or equitable, which could have been preserved to him and protected through the power of the court over its decree.

“There are many cases,” says Mr. Justice Earl, in Coughlin v. New York Cent. & H. R. R. Co. 71 N. Y. 443 (27 Am. Rep. 75), “where this has been allowed to be done. It is impossible to ascertain precisely when this practice commenced, nor how it originated, nor upon what principle it was based. It was not upon the principle of a lien, because an attorney has no lien upon the cause of action, before judgment, for his costs; nor was it upon the principle that his services had produced the money paid his client upon the settlement. So far as I can perceive, it was based on no principle. It was a mere arbitrary exercise of power by the courts; not arbitrary in the sense that it was unjust or improper, but in the sense that it was not based upon any right or principle recognized in other cases. The parties being in court, and a suit commenced and pending, for the purpose of protecting attorneys, who were their officers and subject to their, control, the courts invented this practice and assumed this extraordinary power to defeat attempts to cheat the attorneys out of their costs. The attorney fees were fixed, and definite sums easily determined by taxation, and this power was exercised to secure them their fees.”

[92]*92Nearly all of the cases referred to and cited are cases where a money judgment was sought to be recovered, and the attorney’s claim, by virtue of some statute, would be taxable as a part of the judgment, or would become a lien thereon. It would appear therefore that, where there is no lien upon the cause of action, either by contract or by statute, the plaintiff’s attorney has no vested right which the court is bound to protect at the request of the attorney; but even then the court may, in its discretion, exercise such arbitrary power, and doubtless will do so, when it can see that, through the exercise of the-usual and ordinary powers vested in a court over its judgment as to the form and effect thereof, or as to its satisfaction, it may aid the attorney in the collection of his fees.

2. But when it is manifest to the court, from the facts of the case, that the form and effect of the anticipated judgment will be such that, by the exercise of its usual and ordinary powers over the judgment, the court cannot aid the attorney in the collection of his fee, it will not compel the further prosecution of the case against the wish of the parties, for to do so would be of no avail to any one, and such an act of the court would be an abuse of its discretion. Where, however, plaintiff’s attorney has some interest by way of lien upon the judgment or by way of an equitable assignment of a part of the cause of action, upon giving proper notice, the court is bound to protect such interest.

3. Before judgment in the absence of any agreement, the attorney has no lien upon or interest in the cause of action; but if the cause of action before judgment be in its nature assignable, the owner may assign and by agreement create legal and equitable interest therein, and such agreements may be made with attorneys, as well as with' other persons, and when such interest has been created, and notice given of them, they must be respected: Coughlin v. New York Cent. & H. R. R. Co. [93]*9371 N. Y. 443 (27 Am. Rep. 75); Wylie v. Cox, 55 U. S. (14 How.) 415 (14 L. Ed. 753); Newell v. West, 149 Mass. 520 (21 N. E. 954); Harshman v. Armstrong, 119 Ind. 224 (21 N. E. 662).

4. The agreement by Stearns to convey to Jackson, in the% event the latter is successful in prosecuting the suit, is purely executory, and creates no legal or equitable right in the subject-matter of the contract. Without án express stipulation to that effect, an agreement for contingent fees will not act as an assignment. Where the claim is assignable, the wording of the agreement must in every case be examined to determine that the parties intended an equitable assignment in favor of the attorney: 4 Cyc. 990; Nesbitt v. Cantrell, 29 Ga. 255; Kusterer v. City of Beaver Dam, 56 Wis. 471 (14 N. W. 617: 43 Am. Rep. 725).

5. It is alleged in the complaint in this suit, in substance, that plaintiff is the owner in fee and in possession of certain described lands of which he avers he has the legal title, but that defendants hold an unsatisfied mortgage thereon, which has been paid, and the cancellation thereof is the remedy sought. A decree therefore would not restore to plaintiff a title or a possession which he had lost, but would remove a cloud from the legal title, which he alleges he has. The effect therefore of Jackson’s contract with his client is not an agreement to transfer or convey to him a part of the cause of suit or of the decree, or of anything to be recovered thereby, and hence, if the decree specified in the contract were obtained in this suit, the court could not make effective any attempt to aid the attorney in the collection of his fee by exercising any power vested in it over the decree, even though the deed from Stearns to Wilson be treated by it as void for fraud. For the same reason the contract could not be construed to be an equitable assignment of a part of the cause of suit, even if it were an executed contract. Unless plaintiff’s attorney has some [94]*94vested right by contract, as was the case in Falconio v. Larsen, 31 Or. 137 (48 Pac. 703: 37 L. R. A. 254), or by statute in the subject-matter of the action or cause of action which would ripen into a lien upon the rendition of a decree, the fraud complained of is not an infringement of any vested legal or equitable right in a thing to be recovered in this suit, and over which the court has control.

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Cite This Page — Counsel Stack

Bluebook (online)
92 P. 1079, 51 Or. 88, 1907 Ore. LEXIS 62, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stearns-v-wollenberg-or-1907.