Tate v. Field

46 A. 952, 60 N.J. Eq. 42, 15 Dickinson 42, 1900 N.J. Ch. LEXIS 39
CourtNew Jersey Court of Chancery
DecidedJune 30, 1900
StatusPublished
Cited by1 cases

This text of 46 A. 952 (Tate v. Field) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tate v. Field, 46 A. 952, 60 N.J. Eq. 42, 15 Dickinson 42, 1900 N.J. Ch. LEXIS 39 (N.J. Ct. App. 1900).

Opinion

Pitney, V. C.

The complainant presents a petition asking the court for relief against his solicitor and counsel in the cause, setting forth his employment to conduct the action, and stating the amount of moneys which he had collected from the defendants therein.

A copy of a bill in detail for services performed and moneys disbursed, amounting to $586.93, rendered by his solicitor, was annexed to the petition, which, with a letter accompanying the same, show that the solicitor had collected and received from the defendants, exclusive of costs, in payment of the decree against them, $505.49, and had received pending the suit, from the complainant, as fees, $100, making in all $605.49, from [43]*43which he deducted the amount of his own bill, $586.93, and enclosed a check for $18.56 for the balance.

The complaint and prayer of the petition is that “there are divers false, exorbitant and unreasonable charges made by the solicitor against your petitioner, as shown in his bill rendered. Your petitioner prays that said solicitor may be ordered to come to an accounting for the moneys in his hands, and that an inquiry and adjudication may be made by the court touching the charges for services made by the respondent, and the compensation to which he is entitled may be ascertained by the court” and remedy given.

Upon presenting that petition an order to show cause was made against the solicitor, and on the return day he appeared and filed an answer, but further than that declined to take any part in the proceeding, though counsel appeared for him on several occasions.

Evidence on behalf of petitioner, consisting mostly of correspondence, was taken according to the practice of the court; opportunity was given to the respondent on several occasions to offer evidence on his behalf, and the matter was submitted by the petitioner’s counsel.

The respondent wrote a letter to me making objection to the proceeding; first, that the same was no't justified under the rule laid down in Strong v. Mundy, 7 Dick. Ch. Rep. 833; second, that there was adequate remedy at law; third, lack of authority on the part of the vice-chancellor to proceed unless the matter was specially referred to him; fourth, proper and sufficient notice of hearing was not given; fifth, that the account was delivered in March, 1899, and no objection made to it for about nine months.

The answer of the respondent gives a history of the proceedings, and admits, in substance, that several of the charges made in the bill rendered are incorrect; states that the payment to him by the petitioner of $100 was made in two payments of $50 each, and that the first payment of $50 was for services rendered before the bill was filed, and not included in the bill rendered, and should not have been credited to the petitioner. It further sets out the amount of labor and the time devoted [44]*44to the conduct of the suit, and says, in effect, that although the services charged- for in his bill were not all rendered, yet that, upon the whole, the bill is not exorbitant.

Before examining the matter in detail it may be well to refer to the latest judicial utterances on the subject of the propriety of this court dealing summarily with the respondent, which are found in the opinion of the court of errors and appeals in Strong v. Mundy, 7 Dick. Ch. Rep. 833. The language is this (p. 88p) : “Attorneys and solicitors are officers of the court, and there is no doubt of the authority of the court to proceed summarily against them for their misconduct. But the behavior which will justify the exercise of this summary jurisdiction must be such as is dishonest or oppressive or clearly illegal. If it appear that there exists between a lawyer and his client a fair dispute, which can be decided only on the settlement of doubtful questions of fact or law, the court should not exercise its summary power, but should leave the parties to their ordinary remedies ” citing authorities.

The language just quoted was no more than a well-considered dictum of the court, for it was not necessary for the decision of the cause then in hand.

In order to ascertain what behavior is “such as is dishonest or oppressive - or clearly illegal” we may refer to the cases cited by the learned'judge; and we must also distinguish between motions to disbar and motions strictly such as that here before the court.

The first of those cited is Balsbaugh v. Frazer, 19 Pa. St. 95. That was an action at law against Erazer, an attorney-at-law, for moneys collected, and he offset against the demand a claim for services. In the trial below the claim was allowed. On error a series of propositions and rules were laid down by Chief-Justice Black, among them the following:

“3. An attorney who has money in his hands which he has recovered for his client, may deduct his fees from the amount, and payment of the balance is all that can be lawfully demanded.
“4. If the client is dissatisfied with the sum retained, he may either bring suit against the attorney, or take a rule upon him. In the latter ease the court will compel immediate justice, or inflict summary punishment on the attorney, if the sum retained he such as to show a fraudulent [45]*45intent. But if the answer to the rule convinces the court that it was held back in good faith, and believed not to be more than an honest compensation, the rule will be dismissed, and the client remitted to a Jury trial.

[This shows that the fact of retaining out of the moneys collected a .sum so large as to show a “fraudulent intent” is such “dishonest” and “oppressive” behavior as to “justify the exercise of summary jurisdiction.”]

“5. If, upon the trial, the jury finds that the attorney claimed no larger fee than he was justly entitled to, and in other respects behaved faithfully and well about his client’s business, he should be allowed his demand, and a verdict rendered in his favor, if he has paid the balance; or a verdict against him only for the balance, if he has not paid it; or a certificate, as in this case for what may still be coming to him.
“6. But if he has not acted in good faith; if he has attempted to defraud his client, or connived at the fraud of others; if he has received money without giving notice to the client within a reasonable time; if he has refused or neglected to pay it promptly upon demand ; if he has denied that he had it when questioned by one entitled to know; or, if he has fraudulently claimed the right to retain out of it a larger fee than the jury find to he just, he forfeits all claim to any compensation whatever, and the verdict should he in favor of the client for all the money collected, allowing no deductions for anything hut actual payments. A party must not be put to two suits to recover the same debt.”

The second case cited in Strong v. Mundy is In re Kennedy, 120 Pa. St. 497, where Chief-Justice Paxton refers to Balsbaugh v. Frazer, and cites, with approval, the fourth proposition above set forth, and adds: “And we may add to this that a man does not lose his right to trial by jury because he is an attorney-at-law.”

The third case cited in Strong v. Mundy was In re Paschal, 10 Wall. 483, where Mr.

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Bluebook (online)
46 A. 952, 60 N.J. Eq. 42, 15 Dickinson 42, 1900 N.J. Ch. LEXIS 39, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tate-v-field-njch-1900.