Stickler v. McCarthy

212 N.E.2d 723, 64 Ill. App. 2d 1, 1965 Ill. App. LEXIS 1090
CourtAppellate Court of Illinois
DecidedSeptember 23, 1965
DocketGen. 49,600
StatusPublished
Cited by20 cases

This text of 212 N.E.2d 723 (Stickler v. McCarthy) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stickler v. McCarthy, 212 N.E.2d 723, 64 Ill. App. 2d 1, 1965 Ill. App. LEXIS 1090 (Ill. Ct. App. 1965).

Opinion

MB. PRESIDING JUSTICE DEMPSEY

delivered the opinion of the conrt.

The plaintiff,- Harold Stickler, an attorney at law, sned his former client the defendant, Daniel F. McCarthy, and others for the reasonable value of his services, including a bonus which he alleged was to be paid him based upon the success of his efforts. The services were rendered in behalf of the defendants in a 1957 Superior Court case captioned Pickett v. McCarthy, et al., and in collateral matters arising out of that cause. The other defendants were dismissed and a judgment was entered against McCarthy. The judgment was upon the pleadings and was entered as a sanction under rule 2, section 19-12(3) of the rules of the Municipal Court of Chicago for the defendant’s failure to produce documents pursuant to court orders and a deposition subpoena.

There are three principal issues in this appeal: (1) the propriety of the sanction imposed; (2) whether the court erred in denying leave to file a petition for a- change of venue and (3) whether damages of $130,-000 were properly assessed.

The Pickett v. McCarthy litigation grew out of a dispute over the parties’ interest in various parcels of real estate acquired by McCarthy from 1949 through 1956. Pickett claimed an undivided one-half interest in certain of the parcels which were held in McCarthy’s name or in the name of nominees. In July 1957 McCarthy engaged Attorney Stickler to represent him. According to Stickler’s complaint which was filed in 1962, McCarthy agreed to pay him a minimum fee of $25 per hour to be billed currently and, upon the final disposition of Pickett’s claims, a further fee for the reasonable value of his services. In addition thereto there was to be a bonus based upon the degree of his success and all other pertinent facts and circumstances. The complaint alleged that the property acquired by McCarthy was worth more than $2,000,000, that from July 1957 to August 1961 Stickler spent approximately 1,000 hours in McCarthy’s behalf and that his services were highly successful in that Pickett’s claims were settled out of court with substantial savings resulting to McCarthy. It was further alleged that McCarthy had been billed and had paid $17,875 on account of the minimum hourly charges but had refused to pay the further fee and bonus which amounted to $130,000.

McCarthy’s answer stated that his only agreement was to pay Stickler $25 per hour and that this had been paid in full. He denied that Stickler spent 1,000 hours in his behalf, that Stickler’s accomplishments were highly successful or that the negotiated settlement represented a savings to him.

A chronological review of all the steps leading to the judgment, from the time the issues were joined until the judgment was entered, will best depict the situation facing the court at the time of its entry. A notice of a discovery deposition was served on McCarthy in April 1963. The notice called for the production of documents for the years 1948 to 1961 relating to 35 different transactions, loans, lawsuits, negotiations,,settlements and legal services rendered by Stickler and by eight attorneys who had preceded him. McCarthy brought none of these documents to the deposition hearing which was held on May 9, 1963. His attorney stated that Stickler was entitled to the information he had requested but not at the expense of the disclosure of confidential matters, but that he and McCarthy were prepared to take any reasonable means to satisfy the request for discovery. Stickler replied that” he was not interested in delving into confidential matters but that he was entitled to see the books of account concerning McCarthy’s controversies with Pickett and himself, and that maybe some solution could be suggested. During the ensuing discussion and upon further questioning of McCarthy it developed that a ledger sheet existed for each of his projects on which there was detailed the various items of cost relating to the project and that, with a few exceptions, matters which he considered confidential had been eliminated from the sheets. Stickler asked if there was any reason why the ledger sheets could not be produced. McCarthy’s attorney said he saw no impediment to producing them, and certain other documents that were desired, at the next hearing.

The next hearing was held May 15th. The promised ledger sheets were not produced. McCarthy’s attorney said they refused to reveal private books and records which in their opinion were irrelevant and immaterial to the issues of the lawsuit and that he would ask for a protective order from the court. He said the defendant would supply particular information but not books and records and if Stickler wanted them he would have •to ask the court to compel their production. He said, however, that pertinent records which would satisfy Stickler would be made available to him, but with the understanding that confidential matters would remain so. The attorney further agreed to furnish information, including prices, about McCarthy’s properties which were sold before and during the pendency of the litigation with Pickett but he refused to supply information about properties sold after the litigation had ended. The attorneys agreed that the question whether information in the latter category had to be supplied would have to be threshed out in court.

The parties maintained the same positions at subsequent depositions on June 5th, June 10th, June 27th, June 28th, July 10th and October 1st. Stickler repeatedly requested the ledger sheets and other books, records and accounts; he disclaimed any interest in McCarthy’s private affairs or confidential records. McCarthy repeatedly refused to produce his books and records. He termed these confidential and said he would not expose these to Stickler’s scrutiny.

On October 4th an order was entered setting the case for trial on December 17, 1963. On October 21st Stickler filed a motion, accompanied by his affidavit, for an order requiring McCarthy to produce the ledger sheets and other documents pursuant to the original notice of deposition and to compel him to answer certain listed questions which he had refused to answer at the depositions. The motion was set for hearing on November 4th. On that date the attorneys for the defendant withdrew and another attorney, by leave of court, entered his appearance. At the request of the new attorney the hearing on the motion was continued to November 12th.

On November 12th the hearing was held on the pending motion and on the objections that were filed to it. The objections were on the grounds that much of the information and many of the documents referred to in the motion were privileged and did not relate to the merits of the matter in controversy. The court, after considering the motion, the affidavit supporting it and the objections, overruled the objections and entered an order directing McCarthy to produce the documents and answer the questions. The court also directed that the next deposition was to be held on November 15th in his own jury room and that it continue from day to day until completed.

Upon the resumption of the deposition, McCarthy stated that despite the court order he would not produce the ledger sheets themselves or certain other documents. He did produce photostatic copies of some of the ledger sheets, one of which had been admittedly changed by him after the order of November 12th.

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Bluebook (online)
212 N.E.2d 723, 64 Ill. App. 2d 1, 1965 Ill. App. LEXIS 1090, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stickler-v-mccarthy-illappct-1965.