Werner v. Biederman

28 N.E.2d 957, 64 Ohio App. 423, 31 Ohio Law. Abs. 655, 18 Ohio Op. 186, 1940 Ohio App. LEXIS 921
CourtOhio Court of Appeals
DecidedMay 13, 1940
Docket5769
StatusPublished
Cited by12 cases

This text of 28 N.E.2d 957 (Werner v. Biederman) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Werner v. Biederman, 28 N.E.2d 957, 64 Ohio App. 423, 31 Ohio Law. Abs. 655, 18 Ohio Op. 186, 1940 Ohio App. LEXIS 921 (Ohio Ct. App. 1940).

Opinion

OPINION

By MATTHEWS, J.

This is an action to recover damages on account of an alleged breach of a written contract, of which the following is a copy:

“The undersigned hereby employ Carl G. Werner as' their attorney to represent and assist them in their efforts to procure from certain persons whose names appear below, their signatures to the agreement a copy of which is hereto attached.

In consideration of said efforts of said attorney to procure such signa-, tures, the undersigned agree to pay said attorney the sum of Two Hundred Dollars ($200.00) retainer at once, and the further'sum of One Thousand Dollars ($1000) if, as and when all of said persons named below have signed said attached agreement.

The undersigned further agree to pay such amounts and to execute such agreements as may be necessary and expedient legally to induce said persons, to sign such attached agreement.

The payment of said retainer and said attorney fees, and of amounts agreed to be paid by the undersigned, shall be prorated among the undersigned in proportion to the amounts which they respectively have involved in the Investor’s Protective Service, Inc., and Lindsay & Co., but it is understood that said attorney may hold each or any of the undersigned for the full amount of his fees as above set forth.”

This contract is dated August 17th, 1934. On September 17, 1934, the plaintiff reported the progress he had made. This report shows that he had induced three of the persons to sign the agreement without qualification, one to sign on condition that the defendant and his four associates protect her against liability, three had agreed to sign upon payment of certain amounts, one upon payment of a certain amount, and the signing of an indemnity against liability, one upon delivery of certain stock and an indemnity agreement, and that he was negotiating with three, but had reached no agreement with them.

On September 21st, 1934, the defendant and his associates wrote the plaintiff as follows:-

*657 “As you know, the law firm of Maxwell <& Ramsey and Attorney H. H. Sundermann have been employed by the Investors Protective Service, Inc., to take full charge of legal matters affecting their business.

To our full knowledge and belief, the State of Ohio demands 100% of the clients’ signatures, to permit voluntary liquidation. On August 17, 1934, Mr. Sundermann being away from the city, a committee was formed to work for the best interests of all the clients, and we employed you to secure all the signatures of those persons who had not signed a certain agreement for voluntary liquidation.

Now, inasmuch as we have been unable to complete the work, and our committee is knowingly hindering the progress of counsel employed by Investors Protective Service, Inc., and whereas threats of Receivership are being made almost daily, it becomes necessary for our committee to disband and turn the work over to the counsel employed by Investors Protective Service, Inc. It is also necessary for us to ask you to refrain from making any further efforts as requested by the Employment Contract with you.”

Now it is conceded that the plaintiff did not procure the actual signatures to all of the agreement. It is also conceded that he had not procured the consent of all of them to sign the agreement.

The plaintiff alleged that the defendant and his associates failed to make the payments and sign the guaranties, and perform the other conditions stipulated by the five whom the plaintiff had induced to agree to sign upon performance of those conditions precedent, and as to the others who had not even conditionally agreed to sign, that the defendant “with the intent to prevent the plaintiff from obtaining such consents, interfered with the plaintiff’s negotiations” with certain of the persons “by falsely representing that the plaintiff had been discharged” by the defendant and his associates and “by urging them to pay no attention to the plaintiff”, and that the defendant had caused his associates to become dissatisfied with the plaintiff by falsely representing that he was neglecting their interests so as to induce them to discharge the plaintiff.

The effort of the plaintiff at the trial was to show that he had performed by assisting in every reasonable way, and that the defendant prevented plaintiff from actually securing the signatures.

From the plaintiff’s report of September I7th, it is manifest that if the defendant had prior thereto allowed the plaintiff to continue in the belief that he was still representing him and his associates and at the same time nullify, his efforts by communicating false information as to his authority to those with whom he was negotiating, that his efforts at sabotage had failed. The only complaint in that report related to the failure of the defendant and his associates to perform the conditions imposed by those whom the piaintiff had induced to agree to sign. And it is clear from the evidence that the defendant and his associates failed to perform the conditions negotiated by plaintiff with those who had agreed to sign, and that the defendant and his associates concluded to dispense with the plaintiff’s services without paying anything to him other than the retainer fee of $200.00, and to continue the effort to secure the signatures in other ways and through other attorneys, and it is equally clear that the conclusion of the defendant to dispense with plain-, tiff’s services was not based on any default or failure of the plaintiff to perform the services required of him by his contract. Under such circumstances, has the plaintiff a cause of action against the defendant?

(1) It will be observed that by the terms of the contract the defendant did not agree to perform any and all terms agreed upon between the plaintiff and those with whom he was to negotiate. Nor did the plaintiff agree to perform all the services required to secure the signatures. The language of the contract is, that the plaintiff would *658 assist in securing the signatures to the desired agreement and that they would pay “such amounts and execute such agreements as may be necessary and expedient.”

From the standpoint of the parties, the only thing to be accomplished was the saving that would result from a voluntary liquidation of the business of Lindsay & Co., as contrasted with a judicial or administrative liquidation. The meaning of the terms used must be determined in the light of that object.

Webster’s primary definition of “expedient”, when used as an adjective is “Apt and suitable to the end in view; furthering, or adapted to further what is purposed; practical and efficient; as, an expedient change of policy; an expedient solution of a difficulty; hence, advantageous.”

Had the defendant and his associates been willing to concede any and all terms exacted by those whose signatures they desired, it would not have been necessary to enlist the assistance of any one. The difficulty arose because the defendant and his associates had not been able to induce the signatures on satisfactory terms, and that is the reason that the plaintiff’s assistance was sought. It is manifest that the terms of settlement were to be satisfactory to the defendant and his associates, who were to furnish the funds and supply the guaranties.

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Cite This Page — Counsel Stack

Bluebook (online)
28 N.E.2d 957, 64 Ohio App. 423, 31 Ohio Law. Abs. 655, 18 Ohio Op. 186, 1940 Ohio App. LEXIS 921, Counsel Stack Legal Research, https://law.counselstack.com/opinion/werner-v-biederman-ohioctapp-1940.