Olson v. Foster

WHITE, J.

C. C. Julian was the lessee of two oil and gas leases. He undertook to drill and operate four oil wells on them, setting up a separate trust as to each, being wells one, two and three on one lease, and well eleven on the other. A bank was made passive trustee to hold title and act as depositary and distributor of funds on them. He was active trustee to operate them. He sold participating interests in the separate trusts to different persons known as unit-holders.

In an action pertaining to the title to the leases and other matters, Redfield, Foster and Penn intervened. Respondents were their attorneys. Later R. S. Brenneman was substituted for Redfield. In that action the court appointed these intervenors as the trustees in place of C. C. Julian, pursuant to the power of the superior court to appoint trustees of a private trust when the office becomes vacant or upon the misconduct of the trustee. Respondents were retained by the intervenors before they intervened and before they were appointed trustees. They continued to represent them thereafter in all matters pertaining to their intervention.

Subsequent to the completion of the litigation just mentioned, respondents filed an action to recover the value of their legal services against appellants “personally and as trustees for the holders of participating interests in Julian Wells 1, 2, 3 and 11, Santa Fe Springs oil district, Los Angeles County, California”, wherein judgment was prayed for against the aforesaid defendants named therein for the value of respondents’ services when the same was determined by the court. An attachment was also issued following the filing of this complaint. Appellants herein, as defendants

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in that case, filed an answer, and the cause was set for trial. Promptly upon service of the “setting card” upon them, "defendants made demand for a jury, and the necessary jury fees were deposited and remained on deposit at all times thereafter. The case was accordingly set for trial before a jury. Thereafter respondents, obtaining leave of court, filed a supplemental and amended complaint, to which a demurrer was interposed and overruled, following which an answer was duly filed. When the cause was called for trial the court, over appellants’ objection and notwithstanding compliance by them with all statutory requirements, ruled that they were not entitled to a jury trial as a matter of right, and proceeded to try the cause without a jury. It should here be noted that by their supplemental and amended complaint respondents sued appellants only “as trustees of certain trusts and trust estates known and described as Julian Wells One, Two, Three and Eleven, Santa Fe Springs Oil District, Los Angeles County, California”, and in addition to seeking a recovery of the amount of fees allegedly due them, sought to impress the trust property and assets with a lien therefor. Following trial, judgment was rendered in favor of respondents and provided further that respondents have a lien upon and against the moneys, funds, properties and estates of said trusts and each of them.