Wichita Natural Gas Co. v. Vermilion

297 F. 783, 1924 U.S. App. LEXIS 2890
Court of Appeals for the Eighth Circuit·Decided March 27, 1924·No. No. 6368·Published

Opinion

LEWIS, Circuit Judge.

Defendants in error, plaintiffs below, sued Wichita Natural Gas Company, plaintiff in error, defendant below, in assumpsit on quantum meruit for services rendered as attorneys and' counsellors at law. The answer admitted that defendant employed plaintiffs to render the services sued for, but alleged that two payments which it made and which were given credit on account by plaintiffs in their complaint, were in full settlement and satisfaction. There was written waiver of jury trial and written stipulation that the issues presented by the pleadings be referred to a referee to be appointed by [784] the court, who should take and report the evidence, make findings of fact, conclusions of law and his recommendation thereon, and report same to the court. An order of appointment was made as stipulated. The referee took the evidence and reported to the court his findings of fact, conclusions of law and his recommendation that judgment be entered for plaintiffs in an amount stated as the balance due. The defendant then moved that'certain findings of fact made by the referee be stricken out or set aside because contrary to the evidence, not supported by the evidence, against the weight of the evidence, and prejudicial to the defendant; and that his conclusions of law be also stricken for the same reasons, and for the further reason that they were based upon erroneous findings of fact. The motion also asked the court to allow and preserve its exception to each of those findings. The court considered the motion in the light of the evidence returned, and in a memorandum decision said:

“I have examined the evidence and have no hesitation in here stating, in my judgment, the greater weight of the evidence taken fully supports the findings of the referee as to the value of the services performed by the plaintiffs at the solicitation and request of the defendant. This being true, the motion of defendant to strike out from the report of the referee the ultimate facts found from this evidence must' be denied, and is denied, and the motion of the plaintiffs to confirm the report is. sustained. Let this be done, and let judgment enter as recommended in the report of the referee.”

On entry of judgment defendant sued out this writ of error and filed therewith forty-two assignments of error, which it presents here. All of these alleged errors, except six, are directed to the action of the referee while the evidence was being taken before him — the admission and exclusion of offered proof, and the like. But none of his action in that respect was excepted to after he filed his report: It is not disclosed that his rulings, challenged by thirty-six of the assignments, were ever called to the attention of the court and its action invoked thereon. It was not asked to correct his errors in that respect, if any had been committed, by re-reference or otherwise. The exceptions which it filed to his report dealt only with the ultimate facts which he found and his conclusions'of law. !

It is only procedure in court, judicial action, that we can review; not that of the referee. The writ was directed to the former, it could-not run to the latter; hence, it brought up for review action of the court, not of the referee. Boogher v. Insurance Co., 103 U. S. 90, 26 L. Ed. 310; David Lupton’s Sons v. Auto Club, 225 U. S. 489, 32 Sup. Ct 711, 56 L. Ed. 1177, Ann. Cas. 1914A, 699; City of Cleveland v. Walsh Constr. Co. (C. C. A.) 279 Fed. 57, 63; Demotte v. Whybrow (C. C. A..) 263 Fed. 366; Philadelphia Casualty Co. v. Fechheimer, 220 Fed. 401, 136 C. C. A. 25, Ann. Cas. 1917D, 64; sections 649 and 700, R. S. (sections 1587 and 1668, Comp. St.). Conceding, as counsel for plaintiff in error argue, that the reference was under the Kansas statute, Tiernan v. Chicago Life Ins. Co., 214 Fed. 238, 131 C. C. A. 284, and not an arbitration or common-law reference, still the local statute re-; •quires that the action of the referee, when objected to, must be submitted to the trial court for correction or re-submission; and appellate procedure is from that court not from the referee. It gives to the [785] findings or conclusions of the referee the effect of a special verdict and subjects his decisions to review by the court, and makes the report of the referee upon the whole issue stand, if approved, as the decision of the court. If the Supreme Court of Kansas has construed that statute as permitting it to directly review the action of the referee, as to which we are not advised, that procedure could not be followed here because of the Congressional Act and the decisions supra. As already said, no exceptions were taken to the referee’s report touching the procedure before him, but only to his findings of fact and conclusions of law. This presents here the one question, whether the trial court erred in holding that the referee’s findings of fact and conclusions were sustained by the proof. The referee first made a general statement as to the character of services -rendered and of the time covered in their rendition. He then stated his ultimate findings of fact, which covered two questions, first, Whether the two payments had been made in full settlement and satisfaction, which he found to be only payments on account; and secondly, What sum would be a reasonable compensation for the services rendered, which he fixed in an amount named, deducting therefrom the two partial payments; and concluded, as matter of law, that defendant was indebted to the plaintiffs for the balance, that plaintiffs were entitled to a judgment therefor, and he recommended that the judgment be entered.

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Wichita Natural Gas Co. v. Vermilion, 297 F. 783, 1924 U.S. App. LEXIS 2890 (8th Cir. 1924).

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Related

Boogher v. Insurance Co.
103 U.S. 90 (Supreme Court, 1880)
Tiernan v. Chicago Life Ins.
214 F. 238 (Eighth Circuit, 1914)
Philadelphia Casualty Co. v. Fechheimer
220 F. 401 (Sixth Circuit, 1915)
Demotte v. Whybrow
263 F. 366 (Second Circuit, 1920)
City of Cleveland v. Walsh Construction Co.
279 F. 57 (Sixth Circuit, 1922)