Opinion ID: 1719447
Heading Depth: 1
Heading Rank: 1

Heading: Palmer's liability for fees. The liability issue involves both facts and law.

Text: A. Upon consideration of the evidence, the trial court found three basic facts: first, that Palmer employed Heningers to represent him; second, that Heningers did represent him; and third, that the parties did not have a meeting of the minds as to how Heningers' fees were to be paid. The first and second basic facts are unquestioned. As to the third basic fact, Heninger thought from the discussions that the corporation was to pay the major portion of the fees (Heningers billed it for two-thirds) and that Palmer was to pay the minor portion (Heningers billed him for one-third). The court found that Heningers did not prove Palmer's understanding as to who was to pay the fees. The court held that a meeting of minds was not proved as to how the fees were to be paid, but since Palmer unquestionably did employ Heningers to represent him and it did represent him, he (and now his estate) is liable for Heningers' services but is entitled to credit for the portion Heningers billed the corporation pursuant to Heninger's understanding. Oral testimony and documentary evidence support these findings. On the other hand, oral testimony and documentary evidence support the executors' contention a meeting of minds did occur that Heningers was to bill the corporation in full. The executors assert that Heningers did so, and was fully paid. Were these claims reviewable de novo by us, we would have to resolve this conflict of evidence. The claims are for fees based on services rendered to the decedent during his lifetime, and they stand on no different footing than other claims in probate. They are triable by ordinary proceedings, and the fact findings of the trial court, if supported by substantial evidence, have the force of special verdicts. Iowa Code § 633.33 (1981) (Actions ... for the establishment of contested claims shall be triable in probate as law actions....); Iowa R.App.P. 14(f)(1) (Findings of fact in a law action, which means generally any action triable by ordinary proceedings, are binding on the appellate court if supported by substantial evidence.). On the other hand, the trial court's conclusions of law are open to consideration by us. Solbrack v. Fosselman, 204 N.W.2d 891, 893 (Iowa 1973) (quoting Pitz v. Cedar Valley Egg & Poultry Co., 203 N.W.2d 548, 550 (Iowa 1973)). The fact findings here have substantial evidentiary support and bind us. B. Under the trial court's findings the established legal principle comes into operation, as the court held, that when a person performs services for another at the latter's request, the latter is liable for the services in the absence of special circumstances not appearing here, such as a family relationship indicating a gratuity was intended. We stated in Olberding Construction Co. v. Ruden, 243 N.W.2d 872, 875 (Iowa 1976) (citation omitted): In their first issue stated for review, defendants assert trial court erred in finding the Company was entitled to $5,114.85 as reasonable compensation for the work done on the Ruden home. All parties to this appeal agree the question is one of fact. With respect to this issue, the parties have narrowed the question before us to one of the reasonable value of the services rendered by the Company. There is no claim that an express contract existed as to the amount of compensation to be paid. It is well settled that there may be an implied contract on a point not covered by an express one, and where there is no agreement as to the amount of compensation, the law implies a promise to pay reasonable compensation. See also Restatement of Restitution § 107(2) (1937) (In the absence of circumstances indicating otherwise, it is inferred that a person who requests another to perform services for him ... thereby bargains to pay therefor.); 66 Am.Jur.2d Restitution and Implied Contracts § 21 (1973); 98 C.J.S. Work & Labor § 11(b) (1957). Heningers' pleadings allow this basis of recovery under notice pleading. Iowa R.Civ.P. 69(a). See Iowa Code § 633.44 (1981). Heningers was not required to prove more than necessary to entitle it to relief. Iowa Code § 619.9. Had the trial court held on the evidence that Heninger and Palmer intended Heningers was to be paid solely by the corporation, a different problem would exist; the defense of payment would confront Heningers. But the court found that Heninger intended Heningers was to be paid partially by the corporation and partially by Palmer, and that Palmer's intention was not established. In that situation the rule applies which is stated thus in 66 Am. Jur.2d Restitution and Implied Contracts § 7 (1973): Thus, the mere fact that the parties have attempted to make an express contract but have not succeeded in making it enforceable with respect to some of its terms does not prevent the implication of a promise to pay for benefits conferred thereunder. The generally recognized doctrine is that the fact that a contract is invalid because the minds of the parties did not meet as to some of the essential terms thereof, either because of a mutual mistake or uncertainty therein, does not require that a party thereto who furnishes something to the other party, relying upon the terms as he understood them, be without a remedy. In such case a promise to pay the reasonable value of the benefits is implied. See also 98 C.J.S. Work & Labor § 30 (1957). C. The executors argue in connection with the liability issue that a presumption of unfairness attaches to a fee agreement made after the establishment of the attorney-client relationship and that an ambiguous fee contract is construed against the attorney. We need not consider these contentions as they have no application to the facts as found. The court found the fee agreement claimed by Heningers was not proved. Factually, it found that Palmer employed Heningers to perform legal services and it performed services, and those facts are unquestioned. We uphold the trial court's finding that Palmer (and now his executors) is liable for Heningers' services.