Bruce's v. Bibb's
Bruce's v. Bibb's
Opinion of the Court
delivered the opinion of the court.
This is an appeal from a decree refusing to cancel a bond executed by B. L. Bruce to W. E. Bibb. The bill prayed for an injunction against the collection of the bond, but the decree held it valid and established it as a debt against the estate of Bruce, subject, however, to a credit of $500.
The bond reads thus: “Whereas W. E. Bibb has been my counsel for many years, and I am legally indebted to him for service, and for money advanced me from time to ■time, in considerable amount, and whereas he has agreed to accept at my death the sum of five thousand dollars in consideration of what I now owe him, and also to render such other legal services as may be needed until my death.
“Witness my hand and seal this 31st day of March, 1909.
(Signed) R. L. BRUCE. (Seal).”
Bibb was an attorney of Louisa county, Virginia, where he had practiced law for many years. The estimation in which he was held by those who knew him best is indicated by the fact that he was attorney for the Commonwealth for Louisa county for several terms, that he represented his district in the State Senate of Virginia for one term, that he was actively engaged in the practice of law during nearly all of his manhood, and at the time of his death was assistant Attorney General of Virginia, to which' office he had been appointed a short time before his death, which occurred December 10, 1910. Bruce, who was also a resident of Louisa county and lived until about December, 1913, had been his client for many years, and they occupied this relation at the time of the execution of this bond. They had been warm personal friends for years and Bruce was then unmarried. Bruce married a young woman a short time before his death, and thereupon revoked his previous will, (which had been drawn by Bibb on the same day the bond was executed) and gave almost his entire estate to his wife, subject to his debts, whereas by the former will he had given it to one of his nieces, subject to his outstanding obligations.
The pleadings are voluminous, but it is not necessary to recite their allegations in detail. The amended bill of the complainant and the answer thereto and cross-bill of the defendant sufficiently present the controlling issues to be determined in this case.
It is claimed for the appellant that the transaction thus indicated between this attorney and his life-long client, while these confidential relations existed, is actually and
The legal doctrines applicable under such circumstances have been so frequently announced that we deem it unnecessary to follow counsel in their full citation of authorities. There have been two cases in Virginia to which our attention has been directed. One of these is Thomas v. Turner’s Adm’s, 87 Va. 1, 12 S. E. 149, 668, which has been often cited and may be regarded as a leading case on the subject. Lewis, P., in that case, carefully considered the question and cited many authorities to support the conclusions reached, saying among other things: “It is the duty of an attorney to give to his client the benefit of his best judgment, advice, and exertions, and it would be a just reproach to the law if he were permitted to bring his own personal interest into conflict with that duty by securing a benefit to himself through the influence which the relation implies. All transactions between the parties, to be upheld in a court of equity must be uberrima fides, and the onus is on the attorney to show, not only that no' undue influence was used, or advantage taken, but that he gave his client all the information and advice as against himself that was necessary to enable him to act understandingly. He must show, in other words, (1) that the transaction was perfectly fair; (2) that it was entered into by the client freely; and (3) that it was entered into with such a full understanding of the nature and extent of his rights as to enable the client to thoroughly comprehend the scope and effect of it. Or, as Lord Eldon tersely puts it in the famous case óf Huguenin v. Basely, 14 Ves. 273, the transaction must be shown to have been the ‘pure, voluntary, and well-understood act’ of the client’s mind, otherwise a court of equity will undo it, as having been unduly obtained.”
The other Virginia case is Cullop v. Leonard, 97 Va. 259, 33 S. E. 612, in which Keith, P., said: “The client was, as
There is a comprehensive note on the subject to the case of Shirk v. Neible (156 Ind. 66, 59 N. E. 281), 83 Am. St. Rep. 159, and the later cases on the subject are cited in the notes found in 116 Am. St. Rep. 498, 140 Am. St. Rep. 750, and 2 R. C. L. 1036-1046.
The circumstances relied on here to show laches and ratification of the contract are these: That this suit was not
Giving then the facts of this case our best attention, we conclude that a fee of $2,000 (in addition to the $500 already paid), with interest from December 31, 1913, the approximate date of Bruce’s death, would be such fair allowance. We will, therefore, amend the decree complained of so as to include such a judgment as a full and final settlement of this controversy, and- affirm the decree complained of thus amended. As the appellant substantially prevails in this court, costs will be awarded against the appellee.
Amended and affirmed.
Reference
- Full Case Name
- Bruce's Ex'x. v. Bibb's Ex'x.
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- Syllabus
- 1. Attorney AND Client — Transactions Between Attorney and Client Closely Scrutinized. — -While before the relation commences, counsel and client may freely make their contracts, subject to the same rules as those which govern other men, still after the relation commences it is regarded as one of special trust and confidence. All dealings between the attorney and client must be characterized by the utmost fairness and good faith, and transactions between them are closely scrutinized. 2. Attorney and Client. — Transactions Between Attorney and Client — Rule Not Inflexible — Death of Attorney.- — -Generally transactions between attorney and client are regarded as prima facie fraudulent, and where the transaction is of advantage to the attorney, he is required to show, not only that he exercised no undue influence, but that he gave his client all the information and advice which it would have been his duty to give if he himself had not been interested, and that the transaction was as beneficial to the client as it would have been if the client had been dealing with a stranger. This rule, however, is not inflexible, and in those cases where, owing to the death of the attorney, it is impossible for his representatives to make full or plenary proof, it is not always rigorously applied. S. Attorney and Client. — Transactions Between Attorney and Client — Whether Voidable. — While some cases have held that all such transactions are voidable at the election of the client, the better rule, and the one established by the preponderance of authority, does not go so far. Although such transactions will be closely and carefully scrutinized, yet those which are obviously fair and just will be upheld, and the client is not entitled to absolute relief from such a contract, unless it be shown that he has suffered some injury through an abuse of confidence on the part of his attorney. 4. Attorney and Client. — Transactions Between Attorney and Client — Case at Bar. — In the instant case, a suit by the executrix of a deceased client against the executrix of a deceased attorney to have a bond given by the client to the attorney for legal services cancelled, the contract embodied in the bond under the established rules as to transactions between attorney and client was held voidable, not because any actual fraud could be fairly inferred from the evidence, but because, under the scrutiny which a court of equity must give to ■ such contracts, it appeared that it provided for compensation to the attorney in excess of the fair value of the services which were shown to have been rendered. It also appeared that the bond, equal to one-third or one-fourth of the client’s entire estate, was relatively too large a proportion of his property to be paid to his attorney for such legal services, in the absence of clear and convincing evidence of the character and value of those services justifying such a fee. 5. Attorney and Client. — Transactions Between Attorney and Client — Allowance of Reasonable Compensation Upon Refusal to Enforce Contract. — In a suit by the executrix of a deceased client against the executrix of a deceased attorney to have a bond given by the client to the attorney for legal services can-celled, where it appears to the court that the bond itself could not be enforced, but it was clear that in equity and good conscience the attorney’s estate was entitled to a substantial recovery for a general retainer and services rendered, the court will allow reasonable compensation; and legal services rendered by the deceased attorney’s son because of his father’s contract, the son having assigned to his father’s estate any claims which he would otherwise have had for such services, may be considered in determining the amount for which the client’s estate should be held liable. 6. Attorney and Client. — Transactions Between Attorney and Client — Laches.—-Suit was instituted by the executrix of a client to have a bond given by the client to his attorney for legal services canceled nearly five years after the date of the bond. The client lived for three years after the death of the attorney, and during that period accepted legal advice and services from the attorney’s son without paying any compensation therefor; and' when the bond was shown to him by the attorney’s executrix, he demanded and received a credit of $500 thereon. Held: That complainant was not barred from repudiating the bond by the laches of her testator. While these circumstances made a strong case for defendant, they were not sufficient to overcome the principle that transactions between attorney and client should be given the closest scrutiny. 7. Attorney and Client. — Reasonableness of Fees. — There is no standard of legal fees which can be confidently appealed to. The amount appears to depend upon the circumstances of each case, among them the ability and standing of the attorney, and in case of a general retainer,' the business which he cannot accept, the value of the services to the client, and the other special circumstances which mark each instance of the employment of an attorney by a client.