Thomas v. Lewman

1941 OK 415, 120 P.2d 341, 190 Okla. 37, 1941 Okla. LEXIS 377
CourtSupreme Court of Oklahoma
DecidedDecember 23, 1941
DocketNo. 29997.
StatusPublished
Cited by5 cases

This text of 1941 OK 415 (Thomas v. Lewman) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas v. Lewman, 1941 OK 415, 120 P.2d 341, 190 Okla. 37, 1941 Okla. LEXIS 377 (Okla. 1941).

Opinion

RILEY, J.

This is an appeal from an adverse verdict and judgment in an action commenced by Glenn A. Thomas, hereinafter referred to as plaintiff, against Idolene E. Lewman, executrix of the estate of L. D. Lewman, deceased, to establish a claim of plaintiff against the estate of L. D. Lewman for an attorney’s fee for services alleged to have been rendered L. D. Lewman in his lifetime.

The transactions out of which the claim for attorney’s fee arose are lengthy and involved. Plaintiff is an attorney at law practicing in Kansas City, *38 Mo. L. D. Lewman was a resident of Muskogee, Okla., but died in Kansas City, Mo., about November, 1937. He had been engaged in business there for several years. Defendant, Idolene E. Lewman, is his widow and was appointed executrix of the estate of deceased in Oklahoma. She resides in Atlanta, Ga.

Plaintiff filed his claim against the estate in the sum of $5,000 for services alleged to have been rendered deceased in his lifetime. The claim was disallowed, and plaintiff commenced this action. Prior to July, 1929, Lewman acquired a 99-year lease on two lots at the corner of Eleventh street and Baltimore avenue in the business district of Kansas City. A corporation known as the Eleventh & Baltimore Corporation was organized and the property was transferred to it. In order to obtain additional funds with which to erect upon the lots an office building, a loan of $550,000 was negotiated through Prescott-Wright-Snider, investment bankers of Kansas City. The loan agreement stipulated that the corporation would issue to the bankers its first mortgage leasehold convertible bonds to mature in 12 years secured by a mortgage. On February 12, 1930, the bonds dated December 1, 1929, were delivered and the bankers paid the face amount thereof less $61,160 retained as commission. The money obtained by the loan was paid out in the construction of the building. Prior to the loan deceased had invested in the property $420,000. The funds obtained through the loan being insufficient to complete the building, the Eleventh & Baltimore Corporation borrowed from the Manhattan Construction Company $119,000 evidenced by 33 promissory notes of $3,500 each, and one note in the sum of $4,217.74. These notes were unsecured.

L. D. Lewman became the owner of all the outstanding stock of the corporation and also acquired the $119,000 in notes from the Manhattan Construction Company. In addition thereto the corporation owed Lewman some $6,249 which was also unsecured. The corporation ran into financial difficulties, and in May, 1933, Mr. Lewman filed an action in the circuit court of Jackson county, Mo., to have a receiver appointed. Clark Smith was appointed receiver. He had an office in the building owned by the corporation. During the pendency of the receivership, the Telephone Utility & Investment Company, of which Mr. E. E. Amick was president, also had office space in the building. Mr. Amick appears to have been engaged, to some extent, in the business of acquiring control of corporations in financial difficulty and refinancing or reorganizing them under the provisions of section 77-B of the Federal Bankruptcy Act. The Telephone Utility Company had, about that time, through its attorney, Glenn A. Thomas, carried through and completed reorganization of a utility company known as the Kansas Home Telephone Company. Mr. Smith apparently heard some discussion concerning the reorganization of the Telephone Company, and through some conversation with Mr. Amick the question of reorganization of the Eleventh & Baltimore Company was suggested. This led to a conference between Mr. Lewman, Mr. Amick, and Mr. Smith. There the question of whether it was possible or feasible to work out a reorganization of the Eleventh & Baltimore Corporation was discussed. A second meeting was held, at which Mr. Thomas was called in. Just who called him or suggested that he be called does not appear. At this meeting terms and plans were discussed and a tentative agreement appears to have been made between Mr. Lewman and Mr. Amick. It was agreed that Mr. Thomas would draw the contract.

Mr. Thomas prepared the contract which is referred to as an “option agreement.” On November 15, 1934, this agreement was executed by Mr. Lew-man and Mr. Amick. It is out of this agreement and a subsequent extension thereof and subsequent transactions, in an effort to carry out the reorganization of the corporation, that this controversy arose. By the option agreement, it was stipulated that Mr. Lewman was the owner of all the stock of all classes *39 issued by the corporation and outstanding, and was the owner and holder of the unsecured notes above mentioned and certain other open accounts, and that Mr. Lewman desired to sell all the same to Mr. Amick and Mr. Amick desired to acquire them; it provided that the agreement, with the several other papers and documents dealt with, should be placed in escrow with Clark Smith. Lewman was to assign in blank the certificate representing all the outstanding stock of said corporation, except three shares of the common stock not deposited with the escrow holder which were to be and were assigned absolutely to Amick or his nominee. The purpose was to qualify three persons of Amick’s choice to serve as directors of the corporation. The option agreement made Amick attorney in fact, with full power of substitution, to vote all the outstanding stock of the corporation, at any meeting where the stock was entitled to vote, during the life of the escrow agreement, which was irrevocable for its duration.

The agreement provides that Lewman “hereby agrees to sell, and hereby grants to second party (Amick) the option to purchase all” of said common and preferred stock, the 34 promissory notes and all other claims of Lewman against the Eleventh & Baltimore Corporation. Consideration therefor was to be $30,000 in Telephone Utility first mortgage bonds of the Kansas Telephone Company then in process of reorganization, or of any new corporation which might subsequently own or operate said Telephone Company. It further provided for substitution of other securities in payment, in case of failure to complete reorganization, and issuance of bonds of the Kansas Telephone Company. It was then provided that in case Eleventh & Baltimore Corporation should, during the life of the agreement, become involved in any foreclosure or other reorganization proceedings,

“. . . second party (Amick) ... is hereby expressly authorized, in any such proceedings, to deal with and treat all of said stocks and all of said promissory notes and accounts as though second party was the absolute owner thereof, and to consent, or object, in his absolute discretion to any reorganization plan or plans which may be proposed in respect to Eleventh & Baltimore Corporation, and to accept or cause to be accepted, in his absolute discretion, in lieu of all or any part of said stocks and promissory notes and accounts, any other new stocks or new securities of said corporation as reorganized, or of any new corporation which may be formed to take over the assets of said Eleventh & Baltimore Corporation.”

The agreement was to run until June 1, 1935. Upon the execution of said agreement, Lewman executed the assignments of stock, notes, etc., called for therein and delivered same with the agreement to Clark Smith in escrow. He also assigned the three shares of stock to Amick.

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Bluebook (online)
1941 OK 415, 120 P.2d 341, 190 Okla. 37, 1941 Okla. LEXIS 377, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-v-lewman-okla-1941.