Hand v. Savannah & Charleston R. R.

Citations

• 21 S.C. 162
• 1884 S.C. LEXIS 84

Syllabus

<p>1. Where compensation is allowed out of a common fund belonging to others, for expenses incurred and services rendered in behalf of the common interest, it is upon the principle of representation or agency; e. g., to the plaintiff in a creditor’s bill, or to a defendant made a party as a representative of a class too numerous to be served.</p> <p>2. No one can legally claim compensation for voluntary services to a party, however beneficial they may be, nor for incidental benefits and advantages flowing to a party as a result of services rendered under the employment of another party.</p> <p>3. A bill against a railroad company to require the payment of certain unfunded coupons of their six per cent, bonds was filed by a holder of such coupons in behalf of himself and all others holding like coupons. Afterwards, certain holders of seven per cent, bonds of this company intervened by petition and made one S., a holder of six per cent, bonds, a party defendant in behalf of himself and all other holders of such bonds. S. employed counsel, and all creditors of the company were called in and made parties by advertisement. The contest then arose between the sixes and sevens as to priority of lien, which was decided in favor of the sixes, and the railroad was sold for an amount insufficient to satisfy the prior lien. Held, that counsel fees out of the common fund should be allowed only to the attorney employed by S,, although other counsel for other holders of sixes rendered valuable services to that class of bonds; but S. was made the representative of the successful class, and was therefore the only party authorized to charge the common fund with expenses.</p> <p>4. And upon the same principle, counsel for plaintiff should be allowed a fee out of so much of the common fund as was payable to the holders of unfunded coupons of the six per cent, bonds.</p> <p>5. Courts have no power to subject the property of citizens to claims, unless founded upon established legal or equ