Charles F. Gerhard,, attorney for the above defendant, filed his petition for withdrawal of appearance on October 17, 1940, averring that he entered his appearance for defendant in November 1937 and subsequently had the sheriff’s sale of defendant’s premises stayed, and, after many conferences and discussions with the attorney for plaintiff, an agree
Defendant filed an answer averring that the agreement between petitioner and defendant in November 1937 was that petitioner was to receive $100 as full compensation for services to be rendered by petitioner, to be paid at the conclusion of the services and was to be his entire charge for such services; that never before January 29, 1940, did petitioner make demand upon defend
At the outset, we are confronted by the proposition of the correct procedure to be followed for a court to fix an attorney’s fee, or pass upon the question of the approval of the fée, or size of the fee, retained by the attorney for his services. If the fund is in court for distribution: Commonwealth ex rel. v. Order of Solon, etc., 193 Pa. 240; or in the hands of a third party: Quakertown & Eastern R. R. Co. v. Guarantors’ Liability Indemnity Co. of Phila., 206 Pa. 350; Seybert v. Salem Twp., 22 Pa. Superior Ct. 459; the attorney has no right of “lien” on his client’s money. In those cases where it might be considered that the court has decided contrary to this general rule, as in McKeIvy’s & Sterrett’s Appeals, 108 Pa. 615, where the fund was in court, and Harris’ and Jacoby’s Appeals, 323
The performance of services by an attorney, at the instance of his client, implies an assumption to pay for them quantum meruit and, if the client is dissatisfied with the sum which the attorney retains out of the funds which he has collected, the client may either bring suit against the attorney to recover a portion of the sum retained as fee: Balsbaugh v. Frazer, supra; or take a rule upon him: Lemington B. & L. Assn. v. Weddell, 115 Pa. Superior Ct. 114; National Slovak Society v. Gunther, supra. In the case at bar, defendant does not sue petitioner for a portion of any fee retained by petitioner, nor does he take a rule upon him. It is petitioner who asks the court to determine that a fee of $350 for his services to defendant is reasonable, and he makes this request in his petition to withdraw his appearance. While in McKeIvy’s Appeal, supra,
Again, the question arises as to the right of petitioner to hold any fee in excess of the amount which defendant admits he agreed to pay petitioner out of the moneys in his possession. The cases indicate that the services of the attorney must have operated to secure or collect the fund out of which he claims to be paid. In this case it would appear from petitioner’s petition that he was merely an agent either to receive the rents collected by defendant, or collect them himself, and pay therefrom $100 per month to plaintiff on account of defendant’s indebtedness. Under the circumstances we do not believe that petitioner could be considered to have been the sole instrumentality for the collection of the fund, or that his services caused the fund to come into being, which would be necessary to give him a right of lien. This could be developed in a proper proceeding.
What kind of a lien would petitioner have? A retaining lien has been defined as “ ‘. . . the right of an attorney at law to retain possession of such documents, money, or other property of his client coming into his hands by virtue of the professional relationship, until he has been paid for his services, or until he voluntarily surrenders possession of the property, with or without payment. . . . The retaining lien is a mere right to retain the papers or
“The charging lien, originally, was defined to be the right of an attorney at law to recover compensation for his services from a fund recovered by his aid, and also the right to be protected by the court to the end that such recovery might be effected. Unlike the retaining lien, the charging lien does not depend upon possession, but upon the favor of the court in protecting attorneys, as its own officers, by taking care, ex aequo et bono, that a party should not run away with the fruits of the cause without satisfying the legal demands of the attorney by whose industry those fruits were obtained. ... Nor is the charging lien a merely passive one, but, on the contrary, it entitles the attorney to take active steps to secure its satisfaction.” And in section 580 (p. 978) :
“The doctrine under which the charging lien became effective was established on general principles of justice, and it rests upon the theory that one should not be permitted to profit by the result of litigation without satisfying the demand of his attorney. It has been well described as ‘a mere arbitrary exercise of power by the courts; not arbitrary in the sense that it was unjust or improper, but in the sense that it was not based upon any right or principle recognized in other cases.’ The parties being in court, and a suit commenced and pending, the courts invented this practice, and assumed this extraordinary power, for the purpose of protecting attorneys in their compensation.” See the excellent opinion of Mr. Justice Maxey in Harris’ and Jacoby’s Appeals, 323 Pa. 124.
We accordingly grant petitioner’s request to withdraw his appearance as attorney for defendant, but we must refuse to pass upon the question of his fee in this proceeding.
