Court Opinion

ID: 9443514
Source: CourtListenerOpinion
Date Created: 2023-08-03 19:23:54.849308+00
Date Added: 2024-06-11T17:29:31.499564
License: Public Domain

DENMAN, Chief Judge.
I concur in the opinion. I am also of the view that just as on demurrer the question whether the facts alleged in a complaint support a cause of action is one of law so is the question whether the facts proved support a finding. The Commission’s application for enforcement states a finding which I ignored in the opinion we are ‘modifying. Paragraph 16 states that the Commission found as justification for disallowing Cogan’s fee “that Cogan gave such attention to his personal interests and the fees which he hoped to secure, that his obligation of undivided loyalty to the stockholders whom he represented was not fulfilled.”
The facts are that Cogan procured for his stockholders an agreement from his opponents for a settlement of their claims which the Commission’s application in paragraph 25 states is “fair and equitable to the persons affected thereby.” The facts showing such fairness and equity are set forth in detail in Exhibit J attached to the Commission’s application.
The facts showing the success of Cogan in producing such “fair and equitable” and highly beneficial decision for his stockholder clients gives no substantial support to the Commission’s finding that “his obligation of undivided loyalty to the stockholders whom he represented was not fulfilled.” Indeed, the facts supporting the finding that he secured for them so successful a result negatives the finding of non-fulfillment of his obligation of loyalty to his clients.