55 Ga. App. 463 | Ga. Ct. App. | 1937
Herbert J. Haas brought suit against Eberhard P. Deutsch, Leonard B. Levy, and Pulton National Bank, alleging that the bank held on deposit the sum of $19,000, of which $10,000 was due to the plaintiff and $9000 due to the defendants Deutsch and Levy, the same being a sum awarded to the three individuals as attorneys’ fees by the United States district court for the northern district of Georgia, for representing the trustee of bondholders and bondholders of J. P. Allen & Company, a business located in the City of Atlanta, in connection with certain bankruptcy proceedings instituted against that company. It was alleged that pending the litigation, during the trial of the case, Deutsch and Levy procured an offer of settlement, which included attorneys’ fees, and which was finally approved by the court, and that the court ordered the sum of $19,000 to be paid as attorneys’ fees; that the plaintiff demanded of Deutsch and Levy $10,000 as the
The evidence on the hearing was substantially as follows: After preliminary conferences, Haas was engaged, on April 30, 1934, to join Deutseh and Levy in instituting ordinary bankruptcy proceedings against J. P. Allen & Company of Atlanta. This company had defaulted in the payment of certain outstanding bonds, and offers of settlement had been made but not accepted. S. M. Grier & Company of New York was the owner of the entire capital stock of J. P. Allen & Company, and, before Haas became associated with Deutseh and Levy, had offered $25,000 in cash and $100,000 in bonds to the other bondholders, most of whom finally became represented by Deutseh and Levy. In addition to owning some of the bonds, S. M. Grier & Company was asserting a claim of $244,000 as a creditor of J. P. Allen & Company, and in the contemplated proceedings it was desirable, on behalf of the bondholders in general,' to eliminate or considerably reduce the claim which S. M. Grier & Company asserted. Haas was to devote himself first to interesting some capital in Atlanta to bid at the sale in connection with the proposed bankruptcy proceedings, and, having obtained' prospective bidders, then to file the proceeding, it being contemplated that he was to shoulder most of the work to be done in Atlanta. It was intended, however, that there was to be different representation of the parties to the proceeding, but as Haas was to do most of the work in preparing the case, he was to receive 40 per cent, of the attorneys’ fees to be awarded Deutseh, Levy, and Haas in representing their clients. Efforts to interest
This plan of proceeding under section 77-B of the amendment was approved by Deutsch and Levy, and Haas spent much time for many months in preparing for the trial of the case, and investigation of facts and legal research beyond the necessities of the first contemplated action had to be given close and extended attention. Furthermore, instead of there being separate representation of various parties in the bankruptcy court, a larger portion fell upon Haas when the case came on for trial in February, 1935, and was conducted for seventeen days by Haas. Levy had been prevented from attending because of illness, but Deutsch was present for three days. Haas, by investigating the records of J. P.
On the hearing of the present suit three reputable lawyers, in answer to a hypothetical question outlining the work done by counsel, testified as to the reasonable value of the services rendered by Haas, one testifying that he should be entitled to from 50 to 66% per cent, of the total fee, another from 60 to 65 per cent., and the third from 60 to 66% per cent. The plaintiff testified, that, the fee of $19,000 having been fixed, he should be allowed two thirds of the total. The court rendered judgment holding that the provisions of the original agreement should not apply, and allowed the plaintiff $9000, ordering that such amount should
Where non-resident attorneys engaged a local attorney to join with them in representing certain bondholders of a corporation in this State, which had defaulted in the payment of its bonds at maturity, it being understood that involuntary bankruptcy proceedings would be instituted against the corporation in the United States district court for the northern district of Georgia, and there was to be various representation of the' bondholders in such proceeding, but that the local attorney was to do most of the preliminary work and to endeavor to interest local capital to be ready to bid at the sale of the assets of the corporation in such proposed involuntary bankrupty proceeding, it being agreed between the attorneys that the local attorney would receive 40 per cent, of the total fees collected; but where the local attorney met with difficulty in interesting capital because of inability to obtain financial and operating statements of the corporation, the stock of which was owned by a non-resident holding corporation, which was also asserting, a large claim as a creditor of the defaulting corporation, and between which and the bondholders represented by the attorneys, the parties hereto, there had been some unsuccessful efforts looking to a sale of the bondholders’ interest; and where, after the amendment on June 7, 1934, to the national bankruptcy laws, under which, by section 77-B, provision was made for reorganization of corporations in the Federal courts without a sale of assets, permitting the continuance of the business under conditions named in the amendment, the local attorney recommended to his associates that the original plan of instituting involuntary bankruptcy proceedings be abandoned, and proceedings be instituted under said section 77-B of the amendment to the national bankruptcy laws, explaining that thereby it would be possible, un
The court did not err in permitting the plaintiff, an experienced and reputable attorney, to testify as to the quantum meruit value of his services.
Judgment affirmed.