Universal Oil Products Co. v. Hall

76 F.2d 258, 1935 U.S. App. LEXIS 2518
CourtCourt of Appeals for the Eighth Circuit
DecidedMarch 9, 1935
DocketNos. 10087, 10088
StatusPublished
Cited by7 cases

This text of 76 F.2d 258 (Universal Oil Products Co. v. Hall) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Universal Oil Products Co. v. Hall, 76 F.2d 258, 1935 U.S. App. LEXIS 2518 (8th Cir. 1935).

Opinion

WOODROUGH, Circuit Judge.

On appeal from an order allowing additional compensation to Holmes Hall, special master in chancery.

On'November 25, 1921, Holmes Hall, an attorney at law practicing in Sedalia, Mo., and earning not to exceed $5,000 a year, was appointed master in chancery in a patent infringement suit in equity brought by the Universal Oil Products Company against the Standard Oil Company, with power and directions to hear testimony and make and report findings of fact and conclusions of law to the court. The trial court did not make the appointment of Mr. Hall entirely of its own motion. Mr. Hall had learned of the likelihood of an appointment being made, and had called upon the chief patent attorney for the plaintiff in the case and upon the chief patent attorney for the defendant Standard Oil Company, in Chicago, soliciting their agreement to his appointment as master, and he had also told the District Judge that he believed the attorneys representing "the litigants would agree upon him as master. After his appointment, and on the day before the taking of testimony began in Santa Barbara, Cal., Mr. Hall presented to the attorneys in the case a written stipulation for them to sign fixing his compensation for the services he was to perform as master in chancery at $150 per day. He had asked for $250 per day. The attorneys, faced by the fact that Hall had already received his appointment as master, signed a stipulation on behalf of their clients agreeing that Hall should receive as compensation for his services as special master a per diem of $100 per day for all the time spent by him away from his home at Sedalia, Mo., in connection with the case and for all of the time which he should devote to the cause while at his home and while making and filing his report, and that, in addition to such compensation, the special master would be reimbursed for all hotel bills, travel, and incidental expenses incurred by him while away from his said home and while attending to his duties as such special master; that the per diem and expenses should be paid one-half by the plaintiff and one-half by the defendant and taxed as costs in the case. The stipulation also contained the clause that the master should receive as compensation “any additional sum that may be allowed by the court.” The stipulation so exacted by the master was presented to the District Court Judge and approved by him.

Between the date of his appointment and October 18, 1924, the master heard testimony in the case at different times and in different places during many days; the record not disclosing exactly on what days the testimony was taken.

It is clear that from the beginning of his service the master did not comport himself with the dignity and reserve proper to the office of master in chancery. Attorneys in the case testified, one, that he heard from many sources that the master was talking to Tom, Dick, and Harry everywhere, and another, that he complained of the very unju> dicial talk Mr. Hall was indulging in, and Mr. Hall himself testified: “I will have to admit, the condition I was in, I was like they said about the parrot that talked too damn much, I just simply did, no question about it.”

But in the spring of 1924 one Cale Jones, who for years had been a court reporter in Kansas City, informed one of the attorneys for the defendant that the master had been talking to him (Jones) about the case and [260]*260was not fair and impartial, and was not going to decide the case upon its merits, but, if possible, would force a settlement from the defendant, and had proposed to Jones that he should attempt to bring about a settlement of the case and had agreed to pay him $25,000 out of his own pocket if, as a result, the master got a fee of $250,000 or $300,-000, and $10,000 if he brought about any settlement. The fact was, as afterwards admitted by the master, that the master had gotten the idea that, if the case could be brought to a settlement, he could get a master’s fee of $250,000 or $300,000. His own language is: “I know that ($250,000.00 or $300,000.00) is the only figure I had in mind in the event the case would be compromised.” The fact is further, as admitted by Mr. Hall, that he talked about the case a great deal with Cale Jones, and particularly that he “wanted to help Jones settle the case and I (Mr. Hall) offered to help him in advising him how to talk to "Mr. German and to Mr. Brewster (attorneys for the litigants).” “In other words, in talking to plaintiff I would paint the rosy side of defendant’s case and vice versa.” “I thought it was perfectly proper to advise Jones while I was Master that the thing for him to do was to paint as black a picture of the defense side to the defendant and to the plaintiff’s side to the plaintiff.” “I pointed out certain weaknesses which the plaintiff claimed were in the position taken by the defense.” To help Jones further, the master dictated to Jones the different contentions urged by the respective sides.

The admissions made by Mr. Hall leave no doubt that prior to August 7, 1924, Mr. Hall was attempting to bring pressure upon the Standard Oil Company, through Cale Jones, to make some settlement of the case that would enable Mr. Hall, as he thought, to get a great fee.

Cale Jones was asked to go to a conference of the several attorneys for the Standard Oil Company, and he there repeated his disclosure concerning the conduct of the master to all of the attorneys present. In order to get tangible evidence as to whether what Cale Jones had reported was true, Cale Jones, assisted by one of the attorneys for the Standard Oil Company, prepared and mailed a letter from Cale Jones to Mr. Hall, which was calculated and designed to give Mr. Hall an opportunity, by answering in writing, to confirm the truth of what Cale Jones had reported, or to disprove it. Jones wrote that he had been asked to go to Chicago to confer with the chief counsel for the Standard Oil Company about a settlement of the case, and that he was sure that, if he could go and tell freely of the talks he had had about the case with Mr. Hall, it would have great weight. He wrote that by convincing the defendant that it was practically sure to get an adverse report he was satisfied he could bring about a speedy settlement and one that would be satisfactory. “Naturally,” the letter continued, “I want to know where I come in. At first you told me you would give me $25,000 out of what you received provided I could effect a settlement, but later you have said several times $10,000.” It was stated further in the letter: “The string to play is that I am sure, from talking with you, that you have been very much impressed with the plaintiff’s case, and that I am sure you feel just the opposite toward defendant’s case, and that I think the defendant has not a chance. * * * Let me know how you feel about this.”

If Mr. Hall had not, in fact, plotted with Jones to deceive and intimidate the Standard Oil Company into making a settlement, and if he had not in fact offered to give Jones money to accomplish that result, and if he had not in fact talked to Jones about the testimony in the case and the witnesses and his impressions, and if he had not in fact the motives and purposes Jones attributed to him, then the letter would have been an insult and an affront which would have been resented. Mr. Hall did not resent it. On the contrary, he answered promptly:

“Dear Mr. Jones: Your letter written at Topeka August 7th was duly received and contents noted. * * *

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Bluebook (online)
76 F.2d 258, 1935 U.S. App. LEXIS 2518, Counsel Stack Legal Research, https://law.counselstack.com/opinion/universal-oil-products-co-v-hall-ca8-1935.