Underwood v. Pinson

1953 OK 337, 263 P.2d 418, 1953 Okla. LEXIS 597
CourtSupreme Court of Oklahoma
DecidedNovember 17, 1953
DocketNo. 34898
StatusPublished
Cited by3 cases

This text of 1953 OK 337 (Underwood v. Pinson) 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
Underwood v. Pinson, 1953 OK 337, 263 P.2d 418, 1953 Okla. LEXIS 597 (Okla. 1953).

Opinion

WILLIAMS, Justice.

The facts which gave rise to this cause of action are as follows:

In December, 1941, the law firm of Underwood, Canterbury, Pinson and Lu-pardus accepted 600 shares of stock of low value in satisfaction of a $500 attorney fee. The stock was assigned to Mr. Underwood, the senior member of the firm, and it stood in his name and was in his possession till March of 1946, when he sold the stock for $100,000 and deposited the money in a separate bank account in his own name. Shortly thereafter Mrs. Frances Lewis, who for many years had been a secretary of law firms of which Mr. Underwood was a member, learned of the existence of this account in the course of her regular duties in opening the office mail, and made a casual remark about it to Mr. Underwood. He told her that he had sold the stock in question. Later he handed Mrs. Lewis a slip of paper bearing his directions for setting up the gain from the sale of the stock. She testified:

“When he handed me the sheet of paper, he said, ‘show this on my tax return.’ I said: ‘You mean your personal return’, and he said, ‘Yes, for now.’ ”

The firm of Underwood, Canterbury, Pinson and Lupardus was dissolved on December 31, 1941, and was immediately succeeded by a firm called I. J. Underwood and Associates; the members were Underwood, Rodolf, Pinson and Lupardus. This firm was dissolved by the death of Mr. Underwood on July 10, 1947, and was immediately succeeded by the firm of Rodolf, Pinson and Lupardus, of which Mrs. Lewis was secretary. This firm was itself dissolved in December, 1947, by the death of Mr. Rodolf.

On July 28, 1947, Mrs. Underwood, widow of the deceased, was granted by the County Court, letters testamentary as executrix of his will. She retained as her attorneys, the firm of Rodolf, Pinson and Lupardus. Sometime around the first of August, 1947, Mrs. Lewis, for the first time, disclosed to Pinson and Lupardus all the facts about the sale of the stock and opening of the bank account. At that time Mrs. Underwood was in Minnesota; she had previously hired Mrs. Lewis on a part time basis, to assist her with the office work in the execution of her husband’s will. When Mr. Pinson learned that Underwood had sold the stock and deposited the proceeds in his own account, he said “Well, we can’t do anything about it.” Mrs. Lewis replied “I can get Mrs. Underwood to sign the checks. I am writing her anyway and [420]*420will have her sign the checks and we will transfer it.” The same day Mrs. Lewis wrote a long letter to Mrs. Underwood concerning business of the estate, and the following paragraph was included:

“Herewith also checks payable to I. 'J. Underwood and Associates to transfer trustee accounts for office business' which were not in our general account but stood in I. J.’s name. In order to get these off to you today, I have left the amounts blank for I want to check my balances with the bank’s balance before filling in the amounts. Disbursements on these will be made through the office and show in the amended tax returns which we must file before next Monday.”

The amended tax returns referred to were made necessary by the fact that Mr. Underwood had included the entire $100,000 in his personal income tax return; the amended returns were required in order to get a refund of that portion of the tax which covered the other partners’ share of the $100,000.

On receipt of the letter of which the above paragraph was a part, Mrs. Underwood signed the checks and returned them to Mrs. Lewis. She filled them in for about $73,000 (all that was left in the account) and the checks were deposited in a new account on which Pinson, Lupardus and Mrs. Lewis were authorized to write checks.. Thereafter the money in this account was distributed to the surviving partners of the firm of Underwood, Canterbury, Pinson and Lupardus, and to Mrs. Underwood as the personal representative of the deceased partner, Mr. Underwood.

When Mrs. Underwood returned from Minnesota, she learned for the first time of the transactions above set out; she immediately discharged the firm of Rodolf, Pin-son and Lupardus as her attorneys, and some months later filed an action in district court against Pinson and Lupardus individually and as survivors of the partnership of Rodolf, Pinson and Lupardus, and against Mrs. Lewis. The demurrer of Mrs. Lewis was sustained by the trial court, and she is not a party to the case here. In her petition, Mrs. Underwood, as executrix, sought to avoid the transaction by which Pinson and Lupardus got possession of the surviving partners’ share of the $100,000 bank account, on the grounds that they had “dealt in the subject matter of their employment” while they were her attorneys; she asked for the return of $60,000 or damages in that amount, and that the court impress a trust upon that part of the $60,000 remaining in the possession of Pinson and Lupardus (Mr. Canterbury’s share had previously been paid to him).

Defendants’ answer set up their claim to the money, as outlined herein.

Although plaintiff argues that the firm of Underwood, Canterbury, Pinson and Lu-pardus was not a partnership of which Pinson and Lupardus were members, we think the evidence conclusively proves otherwise. Letters constituting the partnership contract were introduced in evidence which showed that net profits were to be divided as follows: 40%, 32%, 16% and 12% respectively to the members as their names appeared in the firm name. It was shown that Mr. Underwood had prepared partnership income tax returns for the partnership for all of the years of its existence, except of course, the year in which he died. It was also shown that in 1943 he wrote two letters in which he said “I have an interest in some Kentucky Natural Gas preferred stock” and “There are some other parties interested in this stock with me and I will consult with them”. In 1945 he wrote letters in which he referred to “my Kentucky Natural preferred stock”. At this time (1945) the stock had apparently multiplied many times in value. The plaintiff did not allege nor prove that between 1943 and 1945 Mr. Underwood bought the ■stock from his partners.

Prior to trial, the court ordered the addition of the following parties as defendants : Pinson, Lupardus and Mr. Sam Canterbury, individually and as survivors of the partnership of Underwood, Canterbury, Pinson and Lupardus. However, plaintiff and defendants refused to amend [421]*421their pleadings to state a cause of action as to Canterbury, and he was later dismissed as a party defendant.

At the conclusion of all the evidence, defendants’ motion for a directed verdict in their favor was sustained. From the order sustaining such motion, and the judgment pronounced upon such directed verdict, plaintiff appeals.

Plaintiff made a vigorous effort in the trial below to have the issues confined to whether or not defendants had violated the trust which existed pursuant to the attorney-client relationship between plaintiff and defendants. However, it is apparent from the remarks of the trial court contained in the record, that he considered the real issues to be (1) whether a partnership of which Underwood, Canterbury, Pinson and Lupardus were members existed when the stock was received in satisfaction of a fee due such alleged partnership, and (2) who were the real owners of the $60,000 herein involved.

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Bluebook (online)
1953 OK 337, 263 P.2d 418, 1953 Okla. LEXIS 597, Counsel Stack Legal Research, https://law.counselstack.com/opinion/underwood-v-pinson-okla-1953.