McArthur v. John McArthur Co.

BURNETT, J.

Plaintiff brought the action for an accounting, charging the individual defendants with fraud, conspiracy, and misappropriation of the funds of the corporation defendant, in which the decedent, Archibald McArthur, was a stockholder. The answer denied all the allegations of misconduct, and the court found in favor of the defendants upon

[705]

all the material issues, but declared that the books of the corporation had been unscientifically kept, although “the method of bookkeeping employed has been substantially the same as that which has been maintained by said corporation ever since its organization, and that because of the unscientific system of bookkeeping the court finds that the plaintiff is excusable for bringing this action and for that reason, reasonable attorney’s fees should be allowed attorneys for plaintiff.” The trial court concluded that two thousand dollars was a reasonable amount of said fees and entered its judgment accordingly.

This judgment is certainly unique. We would be glad to know if there is any statute or any decision of the highest court of any state that justifies it. Our attention has not been called to any authority that supports it. Indeed, respondent’s counsel have made no argument in this court whatever in the cause, and the reason, no doubt, is that they would not willingly contend for something that their judgment does not approve. It must have been the result of an inadvertence on the part of the trial judge that the award was made, and it is altogether probable that he would have corrected it if the opportunity had been presented.

The rule is, of course, that the matter of costs is the subject of statutory regulation. The consideration is fully discussed by Justice Hart in

Murphy

v.

Casey,

13 Cal. App. 781, [110 Pac. 956], and

Duley

v.

Peacock,

17 Cal. App. 418, [119 Pac. 1086], and no necessity exists to add anything as to the general proposition.