Setzer v. All Steel Engines, Inc.

WOOD (Fred B.), J. In this action, based upon a contingent feé contract, plaintiff asserts a one-fourth interest in certain" properties acquired by All Steel Engines, Inc., and George A. Selig from Taylor Engines, Inc., allegedly acquired as a “recovery” by "way of settlement, upon a judgment against Taylor Engines which defendant Fred A. Watkins, as, attorney for Selig and All Steel, obtained and plaintiff and Watkins were thereafter employed, as attorneys, to enforce.

The judgment, obtained by All Steel and Selig against Lloyd Taylor, Taylor Engines and certain officers of Taylor Engines, decreed and declared: .(1) Selig owns a one-half interest in certain patents; (2) All Steel has an exclusive license to make, use and sell under these patents; (3) Taylor Engines et al. have infringed the rights of Selig and All Steel by entering into a contract with Crosley Motors, Inc., in connection with the invention covered by these patents; (4) a perpetual injunction shall issue restraining further infringement; (5) All Steel to recover damages suffered and profits which Taylor Engines et al. have made by their infringements; (6) that an accounting be had; and (7) that Lloyd Taylor (who had defaulted) pay All Steel $38,500. (See All Steel Engines v. Taylor Engines, 88 F.Supp. 745, decided March 3, 1950; affirmed in 192 F.2d 171, decided October 26, 1951, rehearing denied December ,5, 1951.)

Defendant Fred A. Watkins represented All Steel and Selig throughout the course of that litigation.

January 30, 1952, All Steel entered into a contract em[708]ploying Fred A. Watkins and plaintiff Abraham Setzer, attorneys, “in the matter of the enforcement of that certain judgment” above described “to fully represent us in the recovery of all moneys due us thereunder from said judgment debtors and/or other persons . . . liable or indebted to us by reason of said judgment,” including $38,500, with interest, from Lloyd Taylor, “and the profits and damages to be ascertained and determined, due from . . . Taylor Engines ...”

In “consideration of services rendered and to be rendered . . . by our said attorneys” All Steel promised to pay them 50 per cent of “the net recovery or recoveries, whether achieved by suit, settlement or otherwise, in money or in kind . . . assigning to our said attorneys so much of the proceeds of any such recovery or recoveries as shall equal their share thereof ... If there be no recovery or recoveries we are not to be liable, responsible or indebted to our said attorneys for their legal services rendered or to be rendered herein ...”