Walsh v. Hoskins

• Decision Date: 18 November 1912
• Parties: WALSH v. HOSKINS ET AL.
• Court: Montana Supreme Court

128 P. 589

46 Mont. 356

WALSH v. HOSKINS ET AL.

Supreme Court of Montana

November 18, 1912

Appeal from District Court, Yellowstone County; Geo. W. Pierson Judge.

Action by James A. Walsh against Omar Hoskins and others. Judgment for defendants, and plaintiff appeals. Reversed and remanded.

James A. Walsh, of Helena (W. T. Pigott, of Helena, of counsel) for appellant.

O. F Goddard and F. L. Tilton, both of Billings, for respondents.

SMITH J.

This action was begun to recover judgment against the defendants for the sum of $1,000, with interest from June 20, 1910; and to foreclose an alleged attorney's lien upon certain papers and documents in the possession of the Farmers' & Traders' State Bank of Billings, Mont. The complaint alleges: That the plaintiff is an attorney at law. That on the 1st day of September, 1907, the defendant Omar Hoskins consulted and advised with him, and employed him to begin an action against the Montana Coal & Iron Company, a de facto corporation, and others. That in conformity with such employment plaintiff did begin such action in the district court of Carbon county. That the basis of the action was that Hoskins was the owner of 444 shares of stock in said corporation of the par value of $44,400. That the total capital stock was $2,000,000. It was claimed that 16,478 shares of the capital stock were issued without authority and without consideration, and that an indebtedness against the company to the amount of $99,134.58 was created without authority and without consideration. The object of the action was to cancel said stock certificates so issued without authority, to cancel said indebtedness, and to procure the conveyance of certain trust property to the corporation. That on the 1st day of February, 1910, the defendants Omar Hoskins and Maggie Hoskins employed plaintiff to commence another action against Elijah Smith and the Montana Coal & Iron Company, and pursuant to said employment plaintiff commenced an action in the district court of Yellowstone county. That the basis of the second action was that the said Hoskinses had conveyed certain lands to the Montana Coal & Iron Company, and said company and Smith agreed to give Maggie Hoskins 250 shares of the capital stock of the company, of a par value of $25,000. That plaintiff performed a large amount of work in connection with said actions and the settlement thereof. That on or about the 20th day of June, 1910, the defendants Omar Hoskins and Maggie Hoskins entered into negotiations with one Moss to sell and transfer to him all of said stock and all claims against Smith and the coal company and all interest in the two actions, with authority to prosecute the same, for the sum of $23,000 to be paid as follows: $3,000 cash, and the balance in four equal installments due in three, six, nine, and twelve months. All papers were to be deposited in the Farmers' & Traders' State Bank to be delivered upon the payment to the bank of said balance of $20,000. Plaintiff prepared all necessary papers to carry out the agreement. Moss paid the Hoskinses the sum of $3,000, and thereupon all papers certificates, agreements, etc., were delivered to plaintiff, who deposited the same in the bank aforesaid. Afterwards Moss assigned and transferred to Smith and the coal company all of his interest in the property having, in fact, been acting as agent for them, taking that method of settling the litigation. Prior to the...