Williams v. Philadelphia

57 A. 578, 208 Pa. 282, 1904 Pa. LEXIS 746
CourtSupreme Court of Pennsylvania
DecidedMarch 7, 1904
DocketAppeal, No. 110
StatusPublished
Cited by25 cases

This text of 57 A. 578 (Williams v. Philadelphia) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams v. Philadelphia, 57 A. 578, 208 Pa. 282, 1904 Pa. LEXIS 746 (Pa. 1904).

Opinion

Opinion by

Mr. Chief Justice Mitchell,

The substantial controversy in this case, briefly stated is this: plaintiff being possessed of information that the city had made overpayments in its settlements with the state for taxes, offered to procure credit for such overpayments ; the mayor under authority of an ordinance accepted the offer and made a contract with plaintiff for a contingent fee of ten per cent; one settlement was opened by plaintiff’s efforts, the city received a credit of about $30,000 on which plaintiff was paid his ten per cent fee; plaintiff was then proceeding to open other settlements witli the state when the city, believing that the result would be to its disadvantage, refused to go on and [288]*288prevented plaintiff from further proceedings in its behalf. Plaintiff then brought this suit for the breach of contract.

The right of the city as a client to abandon a suit at any time when satisfied of its interest to do so, is not questioned in this case. But its obligation to plaintiff as its attorney is a different matter. That depends on the contract.

The contract here was all in print or in writing, and there is no room for question as to its terms. By resolution of councils of September 29, 1892, the mayor and city solicitor were “ authorized to employ assistant counsel for the city of Philadelphia, to prosecute the claim of the city for a credit or credits with the commonwealth for taxes on loans, heretofore paid by the city treasurer, and for taxes on personal property heretofore paid by the city; ” and under resolution of October 27, 1892, the compensation of such assistant was fixed at “ ten per cent of the amount collected or recovered.” Plaintiff was duly appointed under these resolutions. He had therefore an interest in the contract apart from his mere employment as an attorney, and of this he could not be deprived by the city’s change of view as to the advisability of further prosecuting its claims.

It is urged, and that is perhaps the main stress of the argument here, that the contract is champertous and should not be enforced by the courts. But the facts do not sustain this view. Contingent fees are not illegal. They enable some just claims to be recovered which the circumstances of the parties would otherwise defeat, while on the other hand they certainly tend to encourage litigation of a speculative and unfounded character, which is against the true interests of society. But, wisely or unwisely, a point on which opinions may fairly differ, the law has long been settled that contracts for such fees are lawful and enforceable by the courts, and something more than the mere contingency of the compensation is necessary to make them champertous. What the plaintiff undertook to do here was not to furnish testimony as a witness, or to do any other act of improper or even doubtful tendency, but to use certain information already accessible to those who looked for it, in a way that his superior knowledge or superior professional skill would make available for his client’s benefit. As it was clearly stated by the learned judge [289]*289to the jury, “ the fact was perfectly public. It was not a private fact. It was a fact known to the commonwealth and known to the municipality .... and therefore there was really no secret whatever about it. But .... though the fact was known, the attention of the city solicitor had never been directed to it, and the attention of the city treasurer had not been sufficiently directed to it to raise a question apparently, and what Mr. Williams did do was to point out that a matter well worthy of attention had not been attended to.” This had no essential element of champerty.

The next question is of performance by the plaintiff, or what was legally equivalent thereto, and of breach by the city. What the plaintiff undertook to do by his contract was to obtain credit for the city for previous overpayments. It appears to be conceded that the state, even in cases of admitted overpayment, does not return the money but gives a credit of the amount on the account at the next settlement. Accordingly the ordinance and the plaintiff’s appointment specify his undertaking as the prosecution of- “ the claim of the city for a credit, or credits, with the commonwealth for taxes on loans,” etc., and the compensation fixed “at ten per cent of the amount collected or recovered” must be understood in its connection as meaning ten per cent of the credit secured. Plaintiff showed the recovery of a credit for about $30,000, as already noted, and gave evidence tending to show that he could have secured a further credit of $84,000, but was prevented by the action of the city. Tins action, which constitutes the breach complained of, consisted of the refusal of the mayor to sign, on behalf of the city, a statement of the claim to be presented to the state board of accounts, and the subsequent refusal' of the city officers and agents to furnish the lists or registers of the bonds and bondholders requisite to enable plaintiff to establish the main fact of payment of taxes on bonds which were exempt or on which the taxes had already been paid by the corporations owning them. It is argued for the city that it was not bound to give any active assistance, as plaintiff had undertaken to do the whole himself. Points were presented for charge that: “ 5. By this agreement with the city, the plaintiff was required to furnish the information and to make the collections from the state without the active [290]*290assistance of the city or of any of its officers, and if the plaintiff’s failure to make the collection was due to the refusal of the city’s officers to aid him by furnishing information necessary to success, your verdict must be for the city, defendant.” And 6. “ The defendant was not obliged, under the terms of the agreement with the plaintiff, to furnish information with which to prosecute the services undertaken by him. If you find, therefore, that it was impossible for the plaintiff to proceed to a successful determination of the matter without assistance from the city, he is not entitled to recover, and your verdict must be for the defendant.” These points the learned judge properly refused. There is nothing in the contract or the circumstances of its making to take it out of the general rule, which is that the party to be benefited, in this-case the client, impliedly agrees to render reasonable assistance to the effort in his behalf. The refusal to sign the claim for presentation to the board of accounts was in effect refusing to furnish the plaintiff with a letter of attorney to act for the city in the matter he had undertaken, -and the schedules.of bonds were a proper part of the evidence in the case which was within the custody and control of the city. The plaintiff did not contract to prosecute a suit against the obstruction of an unwilling client, but was entitled to rely on the implied condition not only of willingness, but of reasonable assistance. This branch of the defense, however, is manifestly an afterthought. The signature and the schedules were not refused because the city did not consider itself obliged to furnish them, but because it had determined that it did not desire the claim prosecuted, and intended to prevent the plaintiff from doing so. This, as already said, it had tbe right to do, but it could not thereby escape its obligations to the plaintiff. The evidence of the breach of the contract was properly received and properly submitted to the jury.

The remaining question has reference to the damages. The plaintiff testified that he would have obtained a further credit of §84,000, while Mr.

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Bluebook (online)
57 A. 578, 208 Pa. 282, 1904 Pa. LEXIS 746, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-philadelphia-pa-1904.