Scharmann v. Union Pac. Ry. Co.

• Decision Date: 19 December 1919
• Docket Number: No. 21301.,21301.
• Citation: 175 N.W. 554,144 Minn. 290
• Parties: SCHARMANN v. UNION PAC. RY. CO. (STILES, Intervener).
• Court: Minnesota Supreme Court

144 Minn. 290

175 N.W. 554

SCHARMANN

v.UNION PAC. RY. CO. (STILES, Intervener).

No. 21301.

Supreme Court of Minnesota.

Dec. 19, 1919.

Appeal from District Court, Hennepin County; Jos. W. Molyneaux, Judge.

Action by Andrew M. Scharmann against the Union Pacific Railway Company, with intervention by George C. Stiles, after settlement and dismissal by parties to enforce a lien for attorney's fees. Judgment for intervener against defendant, and from the denial of its motion for a new trial it appeals. Affirmed.

Syllabus by the Court

An attorney has a lien upon a cause of action arising under the federal Employers' Liability Act (Act April 22, 1908, c. 149, 35 Stat. 65 [U. S. Comp. St. §§ 8657-8665]) for his services, and, upon settlement of the action by the parties without payment of his fees, the attorney may enforce his lien in the action in this state. The deposit of money equal to the amount of such lien in the courts of another state in no manner affects the res upon which such lien is held.

The evidence examined, and held, to sustain the finding that the intervener's contract of employment was not champertous and void.

It does not appear from an examination of the record herein that the decision of the trial court is in violation of section 1 of article 4 of the Constitution of the United States. A. G. Ellick, of Omaha, Neb., Geo. Hoke, of Minneapolis, and Bruce W. Sanborn, of St. Paul, for appellant.

F. M. Miner, Goe. C. Stiles, and D. C. Edwards, all of Minneapolis, for respondent.

QUINN, J.

Proceeding to enforce a lien for attorney's fees against the cause of action set forth in the complaint. The case was tried to the court without a jury. Findings and an order for judgment were made in favor of the intervener and against the defendant for $3,333.34, with interest and costs. From an order denying its motion for a new trial defendant appealed.

While in the employ of the defendant as a locomotive engineer in the state of Nebraska, in October, 1915, plaintiff sustained an injury which resulted in the amputation of his left leg above the knee. In March, 1916, he employed the intervener, George C. Stiles, an attorney residing at Minneapolis, to bring and prosecute a suit against the defendant to recover damages for such injury, agreeing to allow him one-third of the amount recovered either by suit or settlement for his services. An action was brought in Hennepin county, Minn., issue joined, and the case placed upon the calendar for trial, when, in the fall of 1916, counsel for the respective parties arrived at an agreement of settlement of the action at $12,000, which was assented to by plaintiff, and the action dismissed. For some reason the settlement was never consummated, and in May, 1917, the plaintiff directed Mr. Stiles to bring another action to recover such damages, upon the same terms of employment. The present action was then brought, issue joined, and the case placed upon the calendar for trial, when the plaintiff entered into an agreement with the defendant, settling the case for $10,000 and dismissing it without the knowledge of plaintiff's attorney, or the payment of his fees.

In September, 1917, the railway company brought an action in equity, in the district court of Buffalo county, Neb., against the plaintiff, his wife, Edna, as conservatrix of his estate, and George C. Stiles as defendants.

In its petition the railway company alleges and sets forth plaintiff's injury; that he claimed the same was caused through the carelessness of its servants; that in October, 1916, Edna Scharmann was appointed conservatrix of the estate of her husband by the probate court of Cook county, Ill., and given the sole charge of his estate, including any claim which he might have for damages against it on account of such injury; that said railway company denies such alleged negligence on its part; that the said Andrew M. Scharmann and Edna Scharmann as such conservatrix have settled and adjusted said claim for damages with said railway company for the sum of $10,000; that said George C. Stiles is an attorney at law, residing in the city of Minneapolis, Minn., and claims an interest in the amount which may be paid to said Scharmann in settlement for such injury by virtue of a certain contract of employment as an attorney to prosecute such claim for damages which he claims to hold, and that the amount of such claim is the sum of...