SPICER et al. v. BENEFIT ASSOCIATION OF RAILWAY EMPLOYEES
Supreme Court of Oregon
January 17, 1933
February 14, 1933
17 P.2d 1107 | 21 P.2d 187
Argued at Pendleton November 1, 1932; affirmed January 17; rehearing denied February 14; motion for attorney fee allowed April 18, 1933
R. J. Kitchen, of La Grande, for respondent.
ROSSMAN, J. The principal assignment of error challenges orders of the circuit court which overruled the defendant‘s motion for a nonsuit and for a directed verdict. Let us review the evidence, more especially that portion of it favorable to the plaintiff which the jury had a right to believe.
Leslie V. Spicer, 36 years of age, was a machinist‘s helper. Prior to the alleged injury, which we shall now describe, he had always enjoyed good health and was a large, strong, powerful man. May 26, 1931, Spicer, while working at his employment, received an injury on the back of the middle finger of his left hand which inflicted a wound about three-fourths of an inch long and one-fourth of an inch deep. It bled freely and he at once repaired to the first-aid kit where he obtained some gauze dressing and mercurochrome with which he dressed the wound. A rule of the shop required all injured men to file written reports of any injuries received by them, but Spicer did not report the above incident. The evidence indicates, however, that the employees preferred not to report minor injuries. After dressing his finger, Spicer continued at his work the rest of the day and also the following day. Several acquaintances of his who saw him in the days following the above alleged accident swore that he wore a bandage upon his left hand. One testified that he “looked pale“. Another swore that three or four days after the accident he noticed that a “red streak had started up his arm and a knot was under the arm“. Another testified that he saw Spicer bathe his hand in warm water and that he
The defendant‘s answer did not concede that Spicer had sustained the alleged injury. Dr. Ross, the physician previously mentioned, testified that when he attended Spicer May 27th he found him suffering from “a condition which is known as general furunculosis“; that is, many boils or abscesses. According to his testimony, Spicer had “from six to ten of these small abscesses on each hand“, and had consulted him two years previously about a similar condition. Dr. Ross testified that Spicer made no mention whatever of any injury. June 5th he saw Spicer again and found that the condition of his hands had greatly improved and that there was only one area which needed atten-
It will be observed from the above review of the testimony that the plaintiff claimed that Spicer had suffered a cut upon the back of the middle finger of his left hand May 26th or 27th; that shortly thereafter a condition of inflammation appeared in the left hand; that red streaks were seen along the length of his arm; that both his left hand and the lymph nodes became swollen; that Dr. Ross stated in his certificate that the immediate cause of death was “lymphangitis of left arm from hand infection“; and that “the remote and contributing cause of death was bilateral lobar pneumonia“. It will also be observed from the above reviewed testimony that Dr. Phy was of the opinion it was “quite probable” for the injury to the hand to have caused lymphangitis, resulting in death. Both he and Dr. Haun testified that lymphangitis can lessen the patient‘s resistance sufficiently to cause him to contract lobar pneumonia.
The assignment of error now consideration presents the problem whether the wound upon the
The second assignment of error challenges the ruling of the trial court which overruled the defendant‘s objections to the hypothetical questions submitted to Drs. Haun and Phy. In support of this exception, the defendant argues that the questions sought the opinions of the witnesses upon the merits of the case. As will be observed from the foregoing review of the
The next five assignments of error challenge five portions of the instructions of the court to the jury on the ground that in these portions of the instructions the court commented upon the facts, or assumed as facts, matters which were in issue. We have carefully studied these and the remaining parts of the instructions transcribed in the bill of exceptions. We are satisfied that the court submitted every issue of fact to the jury, and we also notice where it carefully cautioned the jury that all issues of fact were for the jury‘s exclusive determination. This being true, we find no error revealed by these assignments of error.
It follows from the foregoing that the judgment of the circuit court is affirmed.
RAND, C. J., BEAN and KELLY, JJ., concur.
ON MOTION FOR ATTORNEY FEE
(21 P. (2d) 187)
Cochran & Eberhard, of La Grande, for appellant.
R. J. Kitchen, of La Grande, for respondent.
ROSSMAN, J. The plaintiff (respondent), having prevailed upon the appeal, moves for the allowance of such sum as will constitute reasonable compensation to her attorney for the services performed by him subsequent to the filing of appellant‘s notice of appeal.
It will be observed that the amendment, like the act which it amended, subjects only insurers to the payment of attorney fees. Since only insurance companies are dealt with in that manner, and since the insurer is not permitted to recover a fee when it prevails, the defendant argues that the act violates
Since the validity of legislation subjecting insurance companies to liability for attorney fees when their defense upon their policies has been unsuccessful has been many times recognized by this court, and since it can reasonably be said that the litigation arising out of such policies presents features peculiar to insurance companies, we conclude that the 1931 act does not conflict with
The defendant argues that the title to the 1931 amendment violates
The defendant next contends that the language of the 1931 amendment expresses a purpose to be prospective in operation and not retrospective. Having advanced this contention, it argues that the amendment has no application to the present policy of insurance which was written prior to the enactment of the 1931 law. It is true that the rules of statutory construction strongly favor a prospective interpretation of statutes which affect substantive rights, but when the new statute concerns itself merely with the laws of pro-
This brings us to the contention advanced by the defendant that the act violates
Let us now see whether any help may be gained from a consideration of the holdings of other courts. In Piedmont & A. Life Ins. Co. v. Ray, 50 Tex. 511, the court construed a Texas statute which subjected life insurance companies, incorporated outside of that state but involved in litigation within the state, to the payment of a reasonable sum for an attorney fee to the
Thus, we see that, apart from the Washington decision which concerned a surety bond, the only decisions which hold that such statutes cannot be retrospectively applied without violating constitutional limitations concerned law authorizing not alone the exaction of an attorney fee but also substantial damages, and that in one instance the statute imposed upon the insurance company a further duty to supply all policyholders with printed forms for the preparation of proofs of loss.
The 1931 amendment authorizes the imposition of nothing more than an attorney fee and concerns itself solely with cases on appeal to the Supreme Court. We have observed from the foregoing that the courts incline to the view that the award of an attorney fee becomes an item of costs.
We believe that the award of the attorney fee can properly be considered as nothing more than the imposition of a cost item for which there was already a liability prior to the enactment of the 1931 amendment, and that, hence, when the statute is retrospectively applied it does not conflict with the constitutional limitations to which the defendant has directed our attention.
The question now occurs what sum should be allowed the plaintiff as reasonable compensation for the services rendered by her attorney in this court. The jury awarded her $300 as compensation for her attorney‘s services in the circuit court. The statute does not contemplate the introduction of testimony in this court and evidently presumes that we will be governed by the facts which of necessity come to our attention in the examination of the case (Sherwood v. Wise, 132 Wash. 295 (232 P. 309, 42 A. L. R. 1219)), after having applied to them the commonplace rules which govern the measurement of attorney fees. They are reviewed in Schmalz v. Arnwine, 118 Or. 300 (246 P. 718). However, in an action of this kind the size of the fee is not to be determined as though it were a speculative or contingent one: Merchants’ Fire Ins. Co. v. McAdams, 88 Ark. 550 (115 S. W. 175). The facts and circumstances which have come to our attention in the presentation of the cause in this court enable us to determine in a satisfactory manner the value of the services of the plaintiff‘s attorney rendered subsequent to the recovery of judgment in the circuit court; for instance, we heard his argument before this court; we have examined his brief, etc. Other courts have held that such services, within the presence and knowledge of the court, constitute evidence from which the court, unaided by opinion of others as to value, or even in defiance of such opinion-evidence, may reach a conclusion: Larscheid v. Kittell, 142 Wis. 172 (125 N. W. 442, 20 Ann. Cas. 576); Tullgren v. Karger, 173 Wis. 288 (181 N. W. 232); Crutcher v. Sims, 184 Mo. App. 488 (170 S. W. 430); Farley v. Geisheker,
In the respondent‘s cost bill we find this item: “Copy of transcript of evidence, $18.00“. The appellant has moved to strike that item. The motion should be and is allowed. J. A. Campbell Co. v. Corley, 140 Or. 462 (3 P. (2d) 776, 13 P. (2d) 610, 14 P. (2d) 455).
RAND, C. J., and BEAN, J., concur.
KELLY, J., (dissenting.) The question here is not whether attorneys are entitled to a reasonable compensation for their services. No thinking person could or should withhold from them the benefit of the scriptural injunction that “a laborer is worthy of his hire“. Luke x, 7; 1 Tim. v, 8. Neither is it a matter of construing a statute allowing an attorney‘s fee in cases wherein an insurance company not acting in good faith interposes a defense as in the case of Supreme Ruling of the F. M. C. v. Snyder, 227 U. S. 497 (57 L. Ed. 611, 33 S. Ct. 292).
As the writer understands the prevailing opinion, it holds that the allowance of $150 as an attorney‘s fee on appeal in a case involving a contract for the payment of $2,700 is either a mere procedural incident to be regarded as only another item of costs, which costs also include an attorney‘s fee of $300
“The obligation of a contract depends upon its terms and the means which the law in existence at the time [of its execution] affords for its enforcement“. State Tax on Foreign-held Bonds, 15 Wall (U. S.) 300, 320 (21 L. Ed. 179).
The writer thinks that a statute authorizing the recovery of an attorney‘s fee in insurance cases should not be given retroactive effect.
The courts of Nebraska and Arizona hold that retroactive effect should be given. Nye-Schneider-Fowler Co. v. Bridges, Hoye & Co., 98 Neb. 863 (155 N. W. 235); American Fire Insurance Co. v. Landfare, 56 Neb. 482 (76 N. W. 1068); Ward v. Bankers’ Life Co., 99 Neb. 812 (157 N. W. 1017); Germania Fire Ins. Co. of N. Y. v. Bally, 19 Ariz. 580 (173 P. 1052, 1 A. L. R. 488).
In Nebraska, however, we find the court saying:
“If the question that we are considering was now presented for the first time, we would hesitate to say that this statute does not create and add to the contract a legal liability which would not exist under the contract prior to the enactment of this statute“. (Nye-Schneider-Fowler Co. v. Bridges, supra.) And also: “The reasons advanced for this contention on the part of the defendant [i. e. that the statute should not be given retroactive effect] and the manner in which they are presented in this brief, might well cause us to hesitate if the question was an open one“. Reed v. American Bonding Co., 102 Neb. 113 (166 N. W. 196, L. R. A. 1918C, 63).
Bullard v. Smith, 28 Mont. 387 (72 P. 761), merely holds that notes, which were declared by a statute to be nonnegotiable because they contained a clause pro-
The Kansas cases cited in the opinion of the court do not involve the question whether statutes providing for attorneys’ fees in insurance cases may be given retroactive effect.
In the Indiana case cited therein, we find this statement:
“We are of opinion that the amended seventh section of the act of 1889, in conferring the right on the contractor to foreclose his lien and to recover a reasonable attorney‘s fee did not impair any vested right or constitutional guaranty. It simply provided a remedy for the enforcement of a right which had already been created by the act of 1889 in conferring on the contractor a lien. That act had already made the abutting property liable to a lien in favor of the city, the contractor, and the holders of certificates or bonds issued under the act on account of street improvements for the contract price of such improvements, and had conferred the right on the city and on the holders of such certificates or bonds to maintain a suit to foreclose the lien as a mortgage and to recover an attorney‘s fee therein.
“As we have already seen, the right given the city and the holders of the bonds or certificates to foreclose and recover attorney‘s fees was for the benefit of the contractor. The extension of the remedy to the contractor did not create any new right, nor did it impose a new burden on the abutting property. Such property was already subject to that burden, subject to foreclosure and attorney‘s fees“. Dowell v. Talbot Paving Co., 138 Ind. 675 (38 N. E. 389).
The courts of Louisiana, Arkansas, Oklahoma, Missouri and Texas hold that retroactive effect should not be given to such statutes as the one under consideration. Guardian Fire Ins. Co. v. Central Glass Co., 114 C. C. A. 639 (194 Fed. 851) (construing La. Act of 1908, No. 168); Central Glass Co. Ltd. v. Niagara Fire Ins. Co., 131 La. 513 (59 So. 972); Central Glass Co. v. Hamburg-Bremen Fire Ins. Co., 133 La. 598 (63 So. 236); Arkansas Mut. Fire Ins. Co. v. Woolverton, 82 Ark. 476 (102 S. W. 226); Arkansas Mut. Fire Ins. Co. v. Stuckey, 85 Ark. 33 (106 S. W. 203); American N. Ins. Co. v. Donahue, 54 Okla. 294 (153 P. 819); Thompson v. Traders’ Ins. Co., 169 Mo. 12 (68 S. W. 889); Piedmont & A. Life Ins. Co. v. Ray, 50 Tex. 511.
“The allowance of an attorney‘s fee relates to the right and not to the remedy“. First Nat. Bank v. Security Mut. Life Ins. Co., 283 Mo. 336 (222 S. W. 832). See, also, Ayers v. Cont. Ins. Co., 217 S. W. 550.
The fact that in the cases refusing to give retroactive effect to statutes providing for damages and attorneys’ fees, the courts did not allow attorneys’ fees renders those cases decisive of the very question here involved; for the reason that it is elementary that any part of the statute which is constitutional is unaffected by those parts thereof which are unconstitutional. If the courts mentioned had deemed the allowance of attorneys’ fees to be warranted under a subsequently enacted statute, they would have so declared even though refusing to uphold the allowance of damages.
“The attorney‘s fee provided by the statute is to be allowed as part of the costs and expenses of the litigation“.
That case was decided before the decision was rendered in the case of People of Sioux County Nebraska v. National Surety Co., 276 U. S. 238 (48 S. Ct. 239, 72 L. Ed. 547), wherein, construing a similar statute of Nebraska (
“That the statute directs the allowance, which is made to plaintiff, to be added to the judgment as costs are added, does not make its costs in the ordinary sense of the traditional, arbitrary and small fees of court officers, attorneys‘, docket fees and the like, allowed to counsel by R. S. §§ 823, 824. The present allowance, since it is not costs in the ordinary sense, is not within the field of costs legislation covered by R. S. §§ 823, 824. That the particular mode of enforcing the right provided by the state statute—i. e., by taxing the allowance as costs—is not available to the federal courts under R. S. §§ 823, 824, does not preclude the recovery. Since the right exists, the federal courts may follow their own appropriate procedure for its enforcement by including the amount of the fee in the judgment“.
The writer thinks that whether the statute in question is remedial or not, the provision thereof for attorneys’ fees upon appeal, which was not in effect when the contract of indemnity was executed, cannot be applied to such contract without violating the constitutional inhibition against impairing the obligation of contracts.
“Whatever belongs merely to the remedy may be altered according to the will of the state, provided the alteration does not impair the obligation of the contract. But if that effect is produced, it is immaterial whether it is done by acting on the remedy or directly on the contract itself. In either case it is prohibited by the constitution“. Bronson v. Kinzie, 1 Howard 311.
The obligation of the contract in suit was to pay the amount of the policy and a reasonable attorney‘s fee. Applying the amendment of the statute passed after the execution of that contract, the obligation thereof becomes enlarged to the extent of requiring the payment of a second and additional attorney‘s fee.
While there is authority to the contrary, the United States Supreme Court has held that—“The right of appeal must be reciprocal, and the statute does not
Cases holding that the right of appeal must be reciprocal and to the contrary are collated in the notes to section 465, page 616 of the 3d volume of C. J., under the title Appeal and Error.
If the right of appeal must be reciprocal, and in the absence of some special or unusual circumstance or relationship it is only just that it should be, the imposition upon one party of a condition as a prerequisite thereto, not required of the other party, cannot be logically upheld, as suggested, on the ground that the right of appeal is wholly statutory and what the legislature has given the legislature may take away.
The motion for an allowance of an attorney‘s fee upon appeal should be overruled.
