The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-01-29
ONLY ONE FEE ALLOWED.
Lawyer May Not Secure More at InequitablC
Expense to Creditors.

Judge Thos r. Purnen. of the Federal
Court. has just rendered an important de-
cision in bankruptcy case. The case is
that Of Thomas w. Smith, voluntary
bankrupt, and where the attorney asked
to he allowed fee from the estate The
Judge holds that this may be done, where
the labor of conducting a case is greater
than was originally contemplated. but
says before the judge grants the order
allowing such fec, the attorney should
disclose the amount he has received as
retainer.
The court holds that usually in voluntary
cases enc attorneys fee only can be al
lowed to the bankrupt and no fec can
be allowed to attorney for trustee except
upon a sworn and itemzed statement.
under the act and that trustees and
referees are entitled to commissions on
such sums paid as dividends, only and not
upon gross amount,
AS to fees for ATTORNEY for, bankrupt,
the judge says 81 al
"In re. Carolina Cooperage Co., 3 \. b.
r. 154 9G f. r. 604 this court has ex-
pressed views in regard TO attorneys
fees, which It is not necessary TO re-
peat 1t would be strained conG:rGc-
ton TO hold that Congress intended by
the adoption Of section GA subsection 3,
to provide for the full compensation to
attorneys in bankruptcy proceedings ar
an ineGultable expense and loss TO Cree
tors os Tie estate.
Lawyers can and generally do take care
of themselves and protect their own in
terests. Many members of Congress arc
and have been practicing attorneys. That
all feel the courteous respect for mem
bers of the profession, universal among
lawyers, goes without saying but it is
an unfair presumption to suppose they are
oblivious to common practice or legislate
for these Of the brethren who rely on the
courts TO wake their contracts.
1T IS common knowledge one of the
first things an attorney does when a
client seeks 10 secure his professional
services is to establish the relationship
of attorney and client. All understand
how this is accomplished. This relation
ship is frequently of great Importance to
both-the client unbosems himself and the
attorney becomes the repository of Sc
crcts, which would be disclosed to no one
else. IT must be presumed the legislative
body had in mind this practice, understood
by litigant and lawyers. and legislated
accordingly Courts ere no less ignorant
of the custom The section should, there
fore, be considered and construed as hav-
ing been adopted with the expectation
that attorneys when employed to file Pc
tition in bankruptcy would as rule, re-
quire the payment of fee as "A condition
precedent to having secrets touching the
estate confdcd 70 him and the labor in
cident to preparing schedules and con-
Quoting the case in the ordinary course
of the court.
when labor is greater than contem-
plated in the ordinary course of such
proceedings arise. the act vests in the
court the discretion TO allow out of the
estate under the reasonable superstition
| that the petitioner has made surrender
of all his property, an additional allowance
| for Unforeseen. professional services by
the attorney, the discretion of the court
TO be governed by the circumstances OF
| each case. The court may allow does
not vest a right in the attorney to any
| fee. 1t is a matter of discretion with the
court. When asked to exercise this dis
erection imposing an increased cost and
| loss to unfortunate creditors it is not I'M
| reasonable to ask the attorney to disclose
the amount his client has paid him that
| the court may act equitably.