Tidball v. Hetrick

363 N.W.2d 414, 1985 S.D. LEXIS 224
CourtSouth Dakota Supreme Court
DecidedFebruary 27, 1985
Docket14525
StatusPublished
Cited by4 cases

This text of 363 N.W.2d 414 (Tidball v. Hetrick) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tidball v. Hetrick, 363 N.W.2d 414, 1985 S.D. LEXIS 224 (S.D. 1985).

Opinion

HENDERSON, Justice.

ACTION

This is an appeal by the defendants, La-Von W. Hetrick, Pierre Hetrick, and Tana Hetrick Hooten, from a judgment of the trial court holding that plaintiff, Keith A. Tidball, was entitled to recover attorney fees in accordance with a written contract for legal services. Farmers State Bank of Winner is not an appellant. We affirm.

FACTS

This was a court trial. Appellant-defendant LaVon Hetrick was an income beneficiary of twenty-five percent of her father A.J. Williams’ estate. LaVon’s children, Pierre Hetrick and Tana Hetrick Hooten, were residual beneficiaries of their mother’s share. Under the terms of a previously revoked trust and will, however, LaVon *416 would have received an outright share of the estate. Litigation contesting the final will was pursued in county court and tried unsuccessfully. After the initial trial and in October 1971, LaVon Hetrick contacted Attorney Keith A. Tidball, appellee-plaintiff herein, to further represent her interests in this matter. The rate for such representation was agreed to be $35.00 per hour. Subsequently, after attorney fees were incurred, appellants and Tidball entered into a new compensation arrangement and the written agreement now in question was signed. Appellant LaVon Hetrick backdated the fee agreement to wipe out the accrued hourly charges which Mr. Tidball and his firm had incurred. The agreement provided in part:

In consideration of [Tidball] representing [the Hetricks] in a contest as to the rights of inheritance ... in the matter of the Estate of A.J. Williams, deceased, it is agreed as follows:
That the [Hetricks] hereby agree that [Tidball] shall receive Vsrd of the net recovery to [the Hetricks] at the final conclusion of said matter, whether upon settlement, appeal or by other means.
Further that in the event no recovery is had, [the Hetricks] agree to reimburse [Tidball] for actual out-of-pocket expenses involved in said contest not to exceed the total sum of $2500.00.

The case was again tried unsuccessfully before the circuit court de novo. An appeal was filed and affirmed by this Court. In re Estate of Williams, 88 S.D. 55, 215 N.W.2d 489 (1974). Another action contesting the revocation of the initial trust was then contemplated and later dismissed by Tidball.

After the final disposition of the above litigation and contemplated action, Tidball continued to represent appellants at their request in matters concerning the probate of the A.J. Williams Estate and diverse other matters brought into the office by LaVon Hetrick. Tidball’s representation in regard to the Williams Estate included, but was not limited to, actions to preserve the estate, accounting actions, an action and judgment for back rentals, the removal of a hostile administrator, the successful removal of the trust provisions as to LaVon He-trick and in 1979 the procurement of a settlement whereby LaVon Hetrick alone would receive twenty-five percent of the trust principal. Never during these eight or nine years of representation by Tidball, including the five years after the conclusion of the will contest, had a change in the manner of his compensation been made or discussed. On the eve of settlement, appellants Pierre and Tana Hetrick confirmed that Tidball was to receive one-third of any amounts received. At the settlement hearing in December 1979, an initial distribution of $225,000.00 was to be made. However, LaVon Hetrick refused to permit Attorney Tidball to receive one-third of that initial distribution. The money was then delivered to the court and the present action was commenced by Tidball to collect his fees under the agreement. After a bench trial, the court below held that Tidball was entitled to receive one-third of the initial distribution and one-third of all future distributions. The trial court also ruled against the Hetricks’ counterclaim based on negligence. It is from this ruling that the Hetricks now appeal.

DECISION

I.

DID THE TRIAL COURT ERR BY RULING THAT TIDBALL WAS ENTITLED TO COLLECT HIS FEES UNDER THE TERMS OF THE AGREEMENT?

Appellants contend that the trial court’s ruling is in error for three reasons. First, appellants contend that before Tidball can recover under the contract, he must show that the high standards required of attorneys when entering compensation contracts, after the inception of the attorney-client relationship, were met. Appellants argue that Tidball failed to meet this burden of proof because he did not offer any evidence that these standards were met.

*417 Second, appellants contend that under the terms of the agreement, nothing is owed to Tidball. It is asserted that Tidball was entitled to a one-third fee from the recovery from the will “contest” only and since this ended unsuccessfully in 1974, Tidball is entitled to nothing. It is further argued that if the agreement’s meaning in this respect is ambiguous, it is to be interpreted against the party who drafted it and such an interpretation is in conflict with the trial court’s ruling.

Third, appellants also contend that the trial court’s ruling, in effect, grants Tidball a blanket assignment of a one-third interest in anything which flows to the Hetricks from the estate and that such a construction cannot be supported by the agreement itself.

An attorney’s compensation is to be left to the agreement of the parties. SDCL 15-17-6. However, a compensation contract entered into after the inception of the attorney-client relationship will be closely scrutinized by the courts. Egan v. Burnight, 34 S.D. 473, 484, 149 N.W. 176, 180 (1914). This is because a confidential relationship of the highest integrity exists and it is necessary to protect this confidence from abuse or use to the attorney’s advantage. Therefore, although compensation agreements made during the existence of the attorney-client relationship are not void per se and must be judged upon the facts of each particular case, McFarland v. Hiltsley, 39 S.D. 618, 166 N.W. 141 (1918), the burden of proof does fall upon the attorney to show: “(1) That the transaction was perfectly fair; (2) that it was entered into by the client freely; and (3) that it was entered into with such a full understanding of the nature and extent of his rights as to enable the client to thoroughly comprehend the scope and effect of it.” Egan, 34 S.D. at 485, 149 N.W. at 180 (quoting Thomas v. Turner’s Adm’r, 87 Va. 1, 13, 12 S.E. 149, 153 (1890)).

The evidence presented at trial clearly shows that Tidball met his burden of proof and fails to support appellants’ contentions on this issue. Appellants initially hired Tidball on an hourly basis and when LaVon Hetrick decided appellants were unable to pay for the hours already incurred, she approached Tidball about changing to a contingent fee. There were doubts about appellants ever receiving anything and by switching to a contingent fee arrangement, appellants minimized their expenses if the future did not bear economic fruit.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Williams v. Waldman
836 P.2d 614 (Nevada Supreme Court, 1992)
McAdam v. Dynes
442 N.W.2d 914 (North Dakota Supreme Court, 1989)
Poyzer v. McGraw
360 N.W.2d 748 (Supreme Court of Iowa, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
363 N.W.2d 414, 1985 S.D. LEXIS 224, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tidball-v-hetrick-sd-1985.