WESTERN LIFE INSURANCE COMPANY v. Nanney

296 F. Supp. 432, 1969 U.S. Dist. LEXIS 10437
CourtDistrict Court, E.D. Tennessee
DecidedFebruary 11, 1969
DocketCiv. A. 2229
StatusPublished
Cited by7 cases

This text of 296 F. Supp. 432 (WESTERN LIFE INSURANCE COMPANY v. Nanney) is published on Counsel Stack Legal Research, covering District Court, E.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
WESTERN LIFE INSURANCE COMPANY v. Nanney, 296 F. Supp. 432, 1969 U.S. Dist. LEXIS 10437 (E.D. Tenn. 1969).

Opinion

MEMORANDUM OPINION AND ORDER

NEESE, District Judge.

This Court ordered on August 15, 1968, herein, 290 F.Supp. 687, 690, that no part of the fund interpleaded herein be paid to or in behalf of the defendant Mrs. Toni Nanney until the matter of the claim of Kelner and Lewis, Esqs., of a lien for their services to her as attorneys had been adjudicated or lawfully settled. Milton Kelner, Esq., of such counsel, having filed in civil action no. 2198, this district and division, a notice of his firm’s claim, and the subject matter in both such actions being the same fund, this Court ordered on August 19, 1968 that Mr. Kelner assert such claim herein as an intervening defendant or suffer such claim in no. 2198 to be stricken. *434 Such intervening claim was filed on August 29, 1968, accompanied by a motion by the intervening claimants for a summary judgment, 1 Rule 56(a), Federal Rules of Civil Procedure.

Concluding that there were genuine issues of fact outstanding between the defendant Mrs. Nanney and the intervening defendant Mr. Kelner, the Court denied the motion for a summary judgment, memorandum opinion and order of November 8, 1968 and the intervening claim was assigned for evidentiary hearing and heard on December 20, 1968. The disputed issues considered thereupon were, (a) whether Kelner and Lewis was retained by Mrs. Nanney to represent her in her criminal as well as her civil matter, and (b) whether Mr. Kelner properly represented Mrs. Nanney in the matter of her claim to the proceeds of the fund interpleaded and remaining herein.

Mrs. Nanney was arrested by authorities of Dade County, Florida on July 25, 1967 and charged with having murdered in connection with insurance claims. Mr. sister in Elizabethton, Tennessee was advised seasonably of her incarceration. The following day Mrs. Nanny’s sister and father arrived in Miami.

Her father, Guy Thompson, had known Mr. Kelner for about ten years and had formed a favorable opinion of his proficiency in the representation of clients in connection with insurance claims. Mr. Thompson, on reaching Miami, telephoned Mr. Kelner, advised him of Mrs. Nanney’s plight, and sought his recommendation. Mr. Kelner recommended that Mr. Thompson consult Harry W. Prebish, Esq., a specialist in criminal law, and by telephone requested Mr. Prebish to visit Mrs. Nanney in jail.

In the interim, Mrs. Nanney had conferred with another attorney, but on the advice of her father, she retained Mr. Prebish. Mr. Thompson paid Mr. Prebish five hundred dollars ($500) to investigate the matter and to represent his daughter at the necessary 2 hearing, with no agreement as to his further representation. On the same date, Mr. Thompson and another daughter, Miss Charlynne Thompson, visited Mrs. Nanney’s home in Fort Myers, Florida. There they discovered two policies of insurance on the life of the late Mr. Nanney, on each of which Mrs. Nanney was the primary beneficiary and her three children the secondary beneficiaries.

Mr. Thompson wished Miss Thompson to become acquainted with Mr. Kelner, and subsequently they visited him in his offices. In the course of conversation, Mr. Thompson apprised Mr. Kelner of the discovery of the policies, and, on his request, Mr. Kelner was permitted to review them.

A hearing was held on August 18,1967, and Mrs. Nanney was enlarged on bail *435 bond, which Mr. Prebish arranged for a bonding agency to post. Soon after Mrs. Nanney was enlarged, she and her father went to Mr. Prebish's offices. Mr. Prebish advised Mrs. Nanney that Mr. Kelr ner had her insurance contracts in his possession and “ * * * is going to represent you * * * ” in connection with the insurance claims. Mrs. Nanney was unaware until then that Mr. Kelner had such policies in his possession. Thereupon, a conference was held with Mr. Kelner in his offices, where Mrs. Nanney met Mr. Kelner for the first time.

Mr. Kelner dictated a proposed document authorizing his firm and Mr. Prebish jointly to represent Mrs. Nanney in both her criminal and civil problems. Mr. Prebish objected to some of the proposed language, stating that his customary fee in first-degree murder representations was $25,000, that he was agreeing to represent Mrs. Nanney for only $10,000, but that he wanted this amount not to be contingent in any manner and a majority of it paid within a short time.

Inter alia, Mrs. Nanney committed 3 to these her claims under all the insurance *436 policies wherein she and/or her children were beneficiaries. It was agreed between these attorneys 4 that Mr. Prebish would be leading counsel for Mrs. Nanney in the criminal matter and would take a two-thirds (%) split of the fee therefor, and that Mr. Kelner would be a leading counsel for her in the civil claims and would take a two-thirds (%) split of the fees therefor.

Although Mr. Kelner did not dictate the pertinent provisions thereof into the memorandum of this agreement, Florida law which subsisted at the time of the agreement became by implication a part of it. United States v. Quincy (1866), 71 U.S. (4 Wall.) 535, 550, 18 L.Ed. 403, 408. The direct legal operation of such law controlled or affected these attorneys’ obligations thereunder. General Development Corp. v. Catlin, C.A.Fla.App. (1962), 139 So.2d 901. Thus, these attorneys were obligated under the agreement to “ * * * ‘faithfully, honestly, and consistently represent the interests and protect the rights, of’ * * * ” Mrs. Nanney, and to discharge their duties to her “ * * * ‘with the strictest fidelity, to observe the highest and utmost good faith toward’ * * * ” her and to obey her “ * * * ‘lawful directions.’ * * * ” Gay v. Heller, C.A. 5th (1958), 252 F.2d 313, 316-317 [7], citing Weekley v. Knight (1934), 116 Fla. 721, 156 So. 625 and In re Clifton (1934), 115 Fla. 168, 155 So. 324.

Mrs. Nanney returned forthwith to Elizabethton with her relatives thereafter. While enlarged on bail awaiting her criminal trial in Florida, she was confronted with an equity proceeding in Carter County, Tennessee to remove from her custody temporarily her children. With financial assistance from her grandfather, she employed Stuart Hampton, Esq., a member of the bar of this Court, as her solicitor in that proceeding.

Mr. Kelner advised Mr. Hampton by letter of August 24, 1967 that his firm represented Mrs. Nanney; that Mr. Prebish represented her in the defense of the criminal charges; that he had been advised that Mr. Hampton had been consulted by “ * * * our client * * * ” with reference to regaining custody of her children; that Mr. Thompson had advised that a Tennessee resident had been appointed administrator of the estate of Mr. Nanney; that administration proceedings should be filed in Florida ; but that such action in Florida was being withheld, pending Mr. Hampton’s advice; and offered assistance to Mr. Hampton in furnishing affidavits or advising him with reference to the status of the criminal charges. Thus, Mrs.

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Cite This Page — Counsel Stack

Bluebook (online)
296 F. Supp. 432, 1969 U.S. Dist. LEXIS 10437, Counsel Stack Legal Research, https://law.counselstack.com/opinion/western-life-insurance-company-v-nanney-tned-1969.