Dennis v. Cowan

California Court of Appeal Oct 28, 1930 No. Docket No. 6441.Published

Before: Schmidt

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Holding. The court held that a client may discharge their attorney and subsequently enter into a new agreement to pay for services rendered up to the time of discharge, rendering such a new agreement enforceable.

Issues

Whether a promissory note given for legal services is enforceable when the client had previously agreed to a different fee structure contingent on salvage.
Whether the trial court's findings on the adequacy of consideration and the value of services should be disturbed when the evidence is conflicting.

Disposition. Affirmed

Quotations verified verbatim against the opinion

“it was the privilege of appellant to discharge respondents as his counsel and employ other counsel and it was perfectly proper for appellant to agree to pay respondents a fee for the services rendered up to the time of the discharge”

“The evidence was conflicting as to the services rendered and the value thereof. The court having found in favor of respondents upon the conflict, this court will not disturb such finding.”

SCHMIDT, J.,

pro tem.

Respondents brought suit in the lower court on a promissory note in the sum of $1250 alleged to have been given in payment of legal services rendered. By answer appellant set up the defense of want of consideration and failure of consideration in that the attorneys acted against the interests of appellant, and in that the services were rendered under a written agreement that a fee should be charged only if at the conclusion of a trusteeship of appellant’s property for the benefit of creditors there was any salvage. Appellant was the owner of a showcase and fixture factory and was in financial difficulties. Pursuant to a recommendation of one of his creditors, appellant consulted respondents, who at that time were the attorneys for Charles E. Clifford Company, a creditor of appellant, and as such attorneys for said creditor were threatening attachment proceedings against appellant. After consultation between appellant and respondent Spencer, an employment was agreed upon whereby appellant paid to respondent Spencer $75, and upon the recommendation of respondent Spencer, appellant assigned all of his property for the benefit of creditors to three trustees, one of whom was respondent Spencer, with the understanding that Spencer “will act as one of the trustees and will keep in close touch with your (appellant’s) business as he has been doing for the last few days; he will counsel and advise you whenever necessary in connection with the matter and assist in working out your finances”.

“At the conclusion of the trusteeship if there is any salvage and property returned to you, you shall at that time pay us a reasonable fee for all services rendered, which fee shall not be less than $2,500.00, and may be more if the services which are rendered are• reasonably worth more.”

During the course of the trusteeship appellant apparently became dissatisfied with the services rendered by respondent Spencer and employed other counsel, after which a compromise was reached between appellant and his creditors. Respondent Spencer, acting on behalf of the Charles Clifford Company, declined to sign the compromise or permit the Charles Clifford Company to sign same until all other creditors had signed and until appellant had paid him in cash

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Dennis v. Cowan

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SCHMIDT, J.,

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