Kimball v. Atlantic States Life Ins. Co.

• Decision Date: 22 April 1915
• Citation: Kimball v. Atlantic States Life Ins. Co., 223 F. 463 (S.D. Ga. 1915)
• Parties: KIMBALL v. ATLANTIC STATES LIFE INS. CO.
• Court: U.S. District Court — Southern District of Georgia

223 F. 463

KIMBALL v. ATLANTIC STATES LIFE INS. CO.

United States District Court, S.D. Georgia, Northeastern Division.

April 22, 1915

Walter McElreath, of Atlanta, Ga., for applicants.

E. H Callaway, of Augusta, Ga., for receiver.

SPEER District Judge.

In this case is presented the petition of Walter McElreath and Alexander Akerman for the allowance of counsel fees in the case of G. S. Kimball against the Atlantic States Life Insurance Company. It was referred to the master, and by that officer the application was denied. Exceptions were filed to the master's report, and counsel were fully heard on yesterday.

The facts are that Kimball was the promoter of the Atlantic States Life Insurance Company. He finally brought suit against that company for liquidated damages in the amount of $5,000, and for other demands in the amount of $122,500. An ancillary proceeding in equity was filed in support of the common-law action, and by and with the consent of the counsel for the insurance company a receiver was appointed and the assets taken in charge. The suit was brought to trial in this court before Hon. Wm. B. Sheppard, judge presiding. Kimball prevailed on his claim, upon one count, for $1,500, but lost on his demand for $122,500. This was taken to the Circuit Court of Appeals and affirmed. The court was now in the possession of all the assets of the defendant company, and certain stockholders by intervention have asked the distribution of the funds. This has been partially done.

The claim of petitioners is based upon the assertion that they brought the fund into court. In a certain class of cases where a proceeding in equity is brought for the benefit of...