Winchester v. Heiskell
Winchester v. Heiskell
Opinion of the Court
delivered the opinion of the court.
On June 6, 1866, one D. H. Townsend recovered a judgment in the circuit court of Shelby county against one W. E. Jones, for the sum of $1,188.25, upon which execution was issued and levied upon the tract of land now in controversy, containing about six hundred and forty acres, and then of the estimated value of about from $30,000 to $50,000.
On September 12, 1866, said land was sold by the
This cause was severely litigated in the chancery court until in 1872, when relief was decreed the complainants in the original bill, permitting them to.
On November 28, 1875, Townsend filed his petition in bankruptcy and was duly declared a bankrupt, and complainant, T. P. Winchester, was duly appointed his assignee in bankruptcy. On December 8, 1876, said cause was tried in this court, and a decree rendered by which the chancellor’s decree was reversed and the complainants were adjudged not entitled to any relief, but relief was granted upon Townsend’s cross-bill, as follows: “It appearing that the said Townsend is entitled to the relief prayed in his cross-bill, to have his title declared and quieted, it is therefore adjudged that the said Townsend has a good title to the said tract of land and premises, by virtue of his said purchase and sheriff’s deed, in fee simple.” Said injunction was made perpetual, and the decree then proceeds as follows: “And it being suggested to the court that the title of said Townsend has been ^signed to Thos. P. Winchester, his assignee in bank-
The master reported upon said reference, that $5,500 was reasonable compensation to said solicitors for their services, and that they had been paid $200, balance due $5,300, which report, being unexcepted to, was confirmed and a decree rendered in favor of said attorneys for said amount, the same being decreed as a lien upon said land, which was decreed to be sold for the satisfaction- of the same, subject to the equity of redemption. Said land was sold, in obedience to
George W. Winchester, the trustee in the before mentioned deed of trust executed by Townsend, on June 18, 1875, having died without any attempt to execute said trust, T. P. Winchester was, by a decree of the chancery court, appointed trustee in his stead, in. 1879, who proceeded to sell all the other property conveyed in said trust deed, and on February 12, 1880, he, together with the beneficiaries mentioned in said deed of trust, filed this bill against said Heiskell, Scott & Heiskell, seeking to attack the title thus acquired by them to said land by virtue of said proceedings and decree, and to have the same declared void and removed as a cloud upon the title of said trustees and beneficiaries under said deed of trust, upon the grounds, as alleged, that said services were rendered in a defensive suit, and hence no lien existed in favor of solicitors. Second, that neither said Townsend or
The bill also alleges that there was a special contract existing between said solicitors and Townsend by which they had agreed to attend to said litigation for $1,000. The answer denies all the allegations of the bill upon which relief is sought specifically. The condition of the deed of trust is as follows: “Whereas, Ben May is bound for me as endorser upon the following described notes and bills, to-wit” (setting them out); “and, whereas, I am also indebted to said Ben May in the further sum of $526.41 by note held by him,” etc. “And, whereas, also, W. S. Staley became bound for me as my surety on an appeal bond,” etc., (describing it, the amount being about $8,000), “and being desirous to indemnify and save harmless the said May and Staley from the liability thus incurred as surety and endorser, now, if said parties shall be constrained to pay off and discharge any of these liabilities, and I shall fail to reimburse the amount thus paid within a period of two years from the date of these presents, then I authorize said trustee to sell,” etc., “to raise money adequate for the payment and discharge of such liabilities. The trustee will apply
Said Townsend and said surety and endorser, Staley and May, are all utterly insolvent, and neither of them have ever paid anything upon said indebtedness, and it is insisted by the respondents that this is a mere indemnity mortgage, and as said May and Staley have not paid any portion of said indebtedness, and could not enforce the execution of the same for their own benefit, and consequently the holders of said indebtedness upon which they are respectively endorser and surety cán have no better right, and hence neither they nor the trustee can enforce the same for their benefit, that the condition of said mortgage has not been broken, and consequently this bill can not be maintained.
Without entering into any discussion of this question, we are of opinion, as well from the terms of the mortgage itself, above cited, as the fact that the mortgagor, Townsend, is insolvent, that the bill is maintainable by complainants to the mortgaged property, all else out of the way, to the satisfaction of these debts: 3 Heis., 525; 5 Cold., 392; Brandt on Suretyship, 383, et seq.
The next question presented is as to the lien of respondents and its superiority over that of the deed of trust in question. Under our decisions, as they existed up to that time, there could have been no
It is now, however, settled that no attorney’s lien exists for services rendered merely in defending a suit by which lands are sought to be recovered from the client: Garner v. Garner, 1 Lea, 30; Stanford v. Andrews, 12 Heis., 664; Sharp v. Fields, 5 Lea, 326.
It is also well established that where the lien exists it relates to the commencement of the service: Garner v. Garner, supra, 1 Heis., 506; 3 Lea, 250.
It is insisted, however, for the complainants, that the suit in which the lien was' declared by this court .was a purely defensive suit, and hence no lien existed, and the adjudication of the same by this court was coram non judice and void. This question was raised in the case of Sharp v. Fields, 5 Lea, 329, where it was insisted that a writ of error could not be maintained for that reason; but it was held that the party was entitled to prosecute the writ to reverse the judgment declaring the lien. It was said, however, that this would be so whether the judgment was void or merely erroneous, and the question was not there decided. We are of opinion that the adjudication of the existence of the lien by this court, under the state of pleadings in that case, was not void, even if it were conceded to have been erroneous. But there was active relief in regard to the title to the land in question sought and obtained by the cross-bill and decree thereon, as .we have above seen, and if it were
The beneficiaries in said mortgage, being subsequent encumbrancers, were not necessary parties to the proceeding to enforce said prior lien: Brown v. Mercer, 10 Hum., 359; Mims v. Mims, 1 Hum., 425; 1 Daniel Chan. Plead. and Practice, 214.
Townsend having become bankrupt pending the suit in which the lien was declared, he was not a necessary or proper party to the proceeding to enforce it, and Winchester, the assignee, was the only necessary party: 1 Daniel Chan. Plead. and Practice, 215, and authorities there cited. And he having appeared, both in this court and in the court below, and assented to the order remanding the cause for the purpose of ascertaining the amount of the fee and its enforcement in said chancery court, and having voluntarily become a party to said proceedings and litigated the same in said court and acquiesced in the decision, can not now be heard to question them. But if this wei’e not so, the assignee, being the only necessary party to
It is alleged by the bill that the respondents had a special contract with Townsend, by which they had agreed to defend the title to the land for $1,000. This is positively denied, and the proof, in our judgment, fails to establish it. W, L. Scott was the partner of the firm with whom the contract of employment was made, whatever it was. He had procured the judgment for Townsend under which the land was sold; had superintended the proceedings under which the same was sold; had advised the course to be pursued; had prepared the sheriff’s deed; had advised as to the possession, and was perfectly familiar with every step that was taken in the matter. And
The circumstances all tend to corroborate the testimony of Judge Scott. The property as we have seen, was then estimated to be worth in the neighborhood of from $30,000 to $50,000. The title was questionable and the suit of doubtful issue. It is scarcely probable that a firm of able lawyers would agree to .undertake an almost purely speculative suit, involving
The answer and cross-bill was filed on the next day after the filing of the bill. It is carefully and elaborately drawn, and is such a presentation of the matter of defense and grounds of relief sought by the cross-bill as no attorney could investigate and prepare in one day, unless he possessed an intimate knowledge of them in advance, and sustains the statement of Judge Scott, that he had been spoken to to defend the title in case of litigation, and had been preparing well for it. Although Townsend testifies that he made a conditional contract with Scott to pay $1,000 in the event of the successful termination of the litigation, yet he further testifies that he paid $590 of said fee before it was terminated. On the books of Heiskell, Scott & Heiskell, there appears a charge made by Scott of $500 as a retainer in said cause, which was entered about six months after the bill was filed, and on the same, day a credit upon said books to Townsend of $50 on account of said fee. This is the only charge in relation to said litigation upon said books, and which we think indicates that no specific amount had been fixed upon at that time as the fee to be charged in said case, else it would have been entered. Both of the other partners, J. B. and C. W. Heiskell, testify that, although they often conferred together with Judge Scott in relation to the amount
It is also shown by the testimony of both Scott and Townsend (who was embarrassed with debts, and the respondents it seems became somewhat anxious to get security for their fee), that pending the litigation, Scott drew up a mortgage for $4,000 and sent to Townsend to sign, by way of securing the fee in said cause, which both testify he declined to do because he considered the charge too high, but Scott testifies positively that he did not, and Townsend does not pretend that he did, at that time, claim that he had made any special contract as to the amount to be charged, which he would almost certainly have done if such had been the case; nor does he pretend that he ever did, in presence either of Scott or of either of the partners, at any other time, claim that a fee had been agreed upon. It is also shown by the testimony of the assignee in bankruptcy, that while the litigation in the chancery court to ascertain the fee was in progress, he went to Townsend and requested him to testify as a witness in regard to it, which he declined to do, as he stated, for' reasons satisfactory to himself. It is a legitimate inference, that if he had, at that time, alleged that he had a special con
070rehearing
PETITION TO REHEAR.
Upon petition to rehear,
said:
This cause was determined at the last term of this court, and a petition to rehear held over under advisement. The petition to rehear presents no question that was not fully considered on the former hearing, and upon a careful reconsideration of the
The petition to rehear will therefore be dismissed.
Reference
- Full Case Name
- T. P. Winchester, Trustee v. J. B. Heiskell
- Status
- Published