Young v. Renshaw

76 S.W. 701, 102 Mo. App. 173, 1903 Mo. App. LEXIS 564
Missouri Court of Appeals·Decided November 3, 1903·Published·Cited by 22 cases

Opinion

BLAND, P. J.

(after stating the facts as above).— 1. In 1901, the Legislature passed the following act:

“Section 1. The compensation of an attorney or counselor for his service is governed by agreement, express or implied, which is not restrained by law. Prom the commencement of an action or the services of an answer containing' a counterclaim, the attorney who appears for a party has a lien upon his client’s cause of action or counterclaim, which attaches to a verdict, report, decision or judgment in his client’s favor, and the proceeds thereof in whosoever hands they may come; and can not be effected [affected] by any settlement between the parties before or after judgment.
“Sec. 2. In all suits in equity and in all actions or proposed actions at law, whether arising ex contractu or ex delicto, it shall be lawful for an attorney at law either before suit or action is brought, or after suit or action is brought, to contract with his client for legal services rendered or to be rendered him for a certain portion or percentage of the proceeds of any settlement of his client’s claim or cause of action, either before the institution of suit or action, or at any stage after the institution of suit or action, and upon notice in writing by the attorney who has made such agreement with his client, served upon the defendant or defendants, or proposed defendant or defendants, that he has such an agreement with his client, stating therein the interest he has in such claim or cause of action, then said agreement shall operate from the date of the service[s] of said notice as a lien upon the claim or cause of action, and upon the proceeds of any settlement thereof for such attorney’s portion or percentage thereof, which the client may have against the defendant or defendants, or proposed defendant or defendants, and can not be affected by any settlement between the parties either be[183] fore suit or action is brought, or before or after judgment therein and any defendant or defendants, or proposed defendant or defendants, who shall, after notice served as herein provided, in any manner, settle any claim, suit, cause of action, or action at law with such attorney’s client, before or after litigation instituted thereon, without first procuring the written consent of such attorney, shall be liable to such attorney for such attorney’s lien as aforesaid upon the proceeds of such settlement, as per the contract existing as herein above provided between such attorney and his client. ’ ’

Tinder the provision of the first section of the act, the lien of an attorney attaches when the suit is commenced or service of an answer containing a counterclaim is made. If the attorney and client enter into a contract that the former shall receive as compensation for his services, a percentage of the amount recovered or realized, and the attorney serves a written notice on the defendant or proposed defendant, of the agreement between himself and client, the lien attaches to the matter or cause of action from the date of the service of such notice, although no suit has been commenced, and if the claim is settled by the client with the defendant or proposed defendant, in disregard of the attorney’s rights, after the defendant has been served with such notice, he will be individually liable to the attorney, as per his contract with his client. The respondent undertook to attach his lien under the provisions of the second section of the act by giving notice of his agreement with his client. The notice, we think, - is sufficient in form and substance, but its service on Judge Krum, the attorney of defendants, was not a compliance with the statute, which expressly requires that the notice shall be served on the defendant or proposed defendant. Sappington v. Jeffries, 15 Mo. 628; Conway v. Campbell, 38 Mo. App. 472. For failing to give the notice required by the second section of the act, Young’s lien did not attach until the suit was commenced, when it [184] attached under the provisions of section one. The lien and its force and effect is therefore governed by the first section. Under the provisions of this section, Young’s lien attached to the judgment as soon as it was rendered and it was not affected by the settlement between the parties in disregard of his rights.

The New York statute, of which the first section of the Act of 1901 (so far as it goes) is almost a literal copy, provides that, ‘‘The court, upon the petition of the client or attorney may determine and enforce the lien. ’ ’ This clause gives the courts of New York jurisdiction, on the intervention of either the client or attorney after final judgment, to determine and enforce the lien. No such power is directly conferred by the Act of 1901 on the courts of this State. Before the Act of 1901 attorneys had no lien for their services in this State. Frissell v. Haile, 18 Mo. 18; Gulick v. Huntley, 144 Mo. l. c. 252; Roberts v. Nelson, 22 App. 28; Alexander v. Grand Ave. Ry Co., 54 Mo. App. l. c. 73. The act is, therefore, not an amendment of the common law, in respect to the same subject-matter, but is the creation of a new right that existed elsewhere at common law.

For some reason best known to itself, the Legisture omitted to prescribe any remedy for the enforcement of the lien when it attaches under section 1, of the act. That the lien can not be enforced in equity against the judgment itself, we think is apparent from the nature of the thing to which the' lien attaches. The chancellor might find that there was a. lien and decree its foreclosure, but there would be no res, no substance, upon which he could put his hand to enforce Ms decree. In such circumstances, the court will not let a new right perish for want of a remedy, but will look to the common law for an adequate remedy for the enforcement of the right. At common law in England an attorney had a lien upon the fund or judgment, which he recovered, for payment as attorney in recovering the fund [185] or judgment, nominated “a charging lien.” Stokes on Liens of Attorneys, see. 5, p. 85.

In respect to enforcing this lien, Lord Mansfield, in Welch v. Hale (1 Doug. 238), said: “An attorney has a lien on the money recovered by his client for his bill of costs. If the money come to his hands he may retain it to the amount of his bill. He may stop it in transitu if he can lay hold of it. If he apply to the court they will prevent its being paid over till his demand is satisfied. I am inclined to go still further, and to hold that, if the attorney gave the notice to the defendant not to pay till his bill should be discharged, a payment by the defendant after such notice would be in his own wrong, and like paying a debt which has been assigned after notice. But I think we can not go beyond these limits. ’ ’

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Young v. Renshaw, 76 S.W. 701, 102 Mo. App. 173, 1903 Mo. App. LEXIS 564 (Mo. Ct. App. 1903).

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