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COLLINS & CORBIN
COUNSELLORS AT LAW
CLEMENT K. CORBIN
ROBERT J. BAIN
EDWARD A. MARKLEY
CHARLES W. BROADHURST
HOWARD F. MCINTYRE JAMES B. EMORY
JAN 2 1935
1 EXCHANGE PLACE,
JERSEY CITY, N. J.
PATRICK F. MC DEVITT
JOHN F. LEONARD
JAMES J. LANGAN
ADOLPH S. HUMMEL
RAYMOND J. LAMB
EARLE J. HARRINGTON
STANLEY G. BROOKS
December 31, 1935.
Vincent P. La Porte, Admr. ad pros. etc. vs.
United States Radium Corp.
Chas. Stockdell Gray, Esq.,
Counsel, Globe Indemnity Co.,
20 Washington Place,
Newark, N. J.
Howard H. Barker, Esq.,
Vice Pres., United States Radium Co.,
535 Pearl Street,
New York City.
Gentlemen:
On last Friday, December 27, 1935, at Trenton, I
appeared before Judge Forman upon presentation of final decree
in the above equity suit. Mr. Emmerglick appeared for the
plaintiff, Mr. Smith for the New Amsterdam Casualt y Company,
Mr. Gray and I for the Globe Indemnity Company and Mr. Barker
for the United States Radium Corporation. The form of decree
as presented was not objected to either by the court or by Mr.
Emmerglick, but the court brought up the subject of providing
compensation to a limited degree for Mr. Emmerglick, counsel
for the plaintiff and also to provide for payment of his dis-
bursements. In fact, this matter had been called to the
attention of counsel by the court before attending at Trenton,
so that they might give it consideration.
I prepared a memorandum on the legal right of the
court to compel the United States Radium Corporation to make
payment of the counsel fee and disbursements. While the law is
not entirely clear it seems to be fairly clear that the ourt
has no right to allow a counsel fee to the defeated party as
against the prevailing party. For instance, in the case of
Higgins V. Eaton, 204 Fed. 273 (C.C.A. 2d Circuit) the court
said: "Costs can seldom be awarded against a prevailing party
unless he has been guilty of some fault or omission." In the
case of Hodgman, et al V. Atlantic Refining Co., 20 Fed (2d) 949,
the District Court for the District of Delaware held that while
the allowance of costs was discretionary, that that discretion
is not an arbitrary one. "In its discretion this court must be
governed by the rule pertaining thereto. The general principle
is that in suits in equity as in actions at law, the prevailing
party is entitled to costs. This principle must be applied
Chas. Stockdell Gray, Esq.,
Howard H. Barker, Esq
2
unless the losing party can show that equity and good conscience
requires a different judgment."
It will therefore be seen that while costs can be
allowed against a prevailing party there must be good reason for
doing SO. Judge Forman on last Friday stated that he felt Mr.
Emmerglick should receive some compensation for the tremendo us
amount of work which he put into the case. Mr. Emmerglick stated
to the court that he spent practically a year on the case in its
preparation and trial and of course he spent six weeks in the
trial of the case. Judge Forman said that Mr. Emmerglick had
rendered considerable aid to the court in arriving at a just and
fair result, which of course was in favor of the adium Company
and that he was very strongly of the opinion that even though
he did not have the power to grant costs and counsel fees, (which
means the same thing for CO. nsel fees are taxed as part of the
costs) that he felt that the Radium Company should be magnanimous
in the matter and likewise the insurance companies involved and
that they should pay something toward compensating Mr. Emmerglick
for his tireless work. He further stated that Mr. Emmerglick had
put the presentation of the case on a very high plane and had
not attempted to get away from the facts, the scientific know-
ledge that was available and the law applicable and that this
fair presentation of the ma tter in a great measure helped to
solve the question involved in favor of the Radium Company.
Mr. Emmerglick was thereupon asked by the court what
he felt would be a fair allowance and he stated to the cart that
he had an out of pocket expense which included an unpaid bill
of the court stenographer for testimony, of appr oximately $1500.
and that he felt that a fair allowance for his services would
be $7500. making up a total of $9000. Needless to say, I stated
that I was greatly shocked at the amount of Mr. Emmerglick's fee.
His disbursements of course are undoubtedly accurate and correct.
I further stated to the court that I felt Mr. Emmerglick was
proceeding on the theory that he was the successful and prevail-
ing party rather than the losing party and that under no cir-
cumstances would my client countenance payment of any such sum.
After a great deal of discussion the court finally suggested
$2500. to Mr. Emmerglick plus $1500. for his disbursements, making
a total payment of $4000. The court also felt that of that sum
the Radium Company should pay $2000. and each of the insurance
companies involved, namely, the Globe Indemnity and the New
Amsterdam Casualty, 31000., with the understanding of all con-
cerned that counsel would report back to their respective clients
and advise the court as soon as practicable just what would be
paid to Mr. Emmerglick, if anything.
Chas. Stockdell Gray, Esq
Howard H. Barker, Esq
#3
It is my recommendation that the Radium Company
should pay $2000. and that the Globe should pay $1000. So
far as the New Amsterdam is concerned, Mr. Edwin F. Smith who
represents that Company will have to get authority from it
to pay 1000.
In conclusion, the court stated that if the pa rties
were unwilling to make the foregoing payments he would regard
his suggestion as without ejudice to the allowance in the
final decree of a much larger sum to Mr. Emmerglick, because
he knew if he allowed anything it would be appealed, and there-
fore if the fee had to be allowed by a court order it would
have to be much larger and more in proportion to the services
rendered. If we should decline to make the payment the
probability is that the allowance by the court which it will
officially make will be much larger. It may be as much as
7500. but in all probability will be 5000. It is my opinion
that any such allowance could probably be reversed as improper.
However, it is my recommendation as stated above, that if we
can make the payment suggested by the court it would be wise
to do so. This is so in addition to the reasons already
stated, for the further reason that Mr. Emmerglick appears
in four other cases in which he promised us discontinuarces.
of course there will be no appeal from Judge Forman's decision
and Mr. Emmerglick promised that he will not engage in any
other radium litigation, but that he will refuse to represent
any other claimant. The result will be that we will get rid
of four other cases and possibly more and in addition, Mr.
Emmerglick 111 cease to be a factor in the prosecution of such
cases; also there will be no appeal in the La Porte case.
Please let me have your instructions as soon as
practicable.
Yours very truly,
EAM:AG
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"ocrText": "COLLINS & CORBIN\nCOUNSELLORS AT LAW\nCLEMENT K. CORBIN\nROBERT J. BAIN\nEDWARD A. MARKLEY\nCHARLES W. BROADHURST\nHOWARD F. MCINTYRE JAMES B. EMORY\nJAN 2 1935\n1 EXCHANGE PLACE,\nJERSEY CITY, N. J.\nPATRICK F. MC DEVITT\nJOHN F. LEONARD\nJAMES J. LANGAN\nADOLPH S. HUMMEL\nRAYMOND J. LAMB\nEARLE J. HARRINGTON\nSTANLEY G. BROOKS\nDecember 31, 1935.\nVincent P. La Porte, Admr. ad pros. etc. vs.\nUnited States Radium Corp.\nChas. Stockdell Gray, Esq.,\nCounsel, Globe Indemnity Co.,\n20 Washington Place,\nNewark, N. J.\nHoward H. Barker, Esq.,\nVice Pres., United States Radium Co.,\n535 Pearl Street,\nNew York City.\nGentlemen:\nOn last Friday, December 27, 1935, at Trenton, I\nappeared before Judge Forman upon presentation of final decree\nin the above equity suit. Mr. Emmerglick appeared for the\nplaintiff, Mr. Smith for the New Amsterdam Casualt y Company,\nMr. Gray and I for the Globe Indemnity Company and Mr. Barker\nfor the United States Radium Corporation. The form of decree\nas presented was not objected to either by the court or by Mr.\nEmmerglick, but the court brought up the subject of providing\ncompensation to a limited degree for Mr. Emmerglick, counsel\nfor the plaintiff and also to provide for payment of his dis-\nbursements. In fact, this matter had been called to the\nattention of counsel by the court before attending at Trenton,\nso that they might give it consideration.\nI prepared a memorandum on the legal right of the\ncourt to compel the United States Radium Corporation to make\npayment of the counsel fee and disbursements. While the law is\nnot entirely clear it seems to be fairly clear that the ourt\nhas no right to allow a counsel fee to the defeated party as\nagainst the prevailing party. For instance, in the case of\nHiggins V. Eaton, 204 Fed. 273 (C.C.A. 2d Circuit) the court\nsaid: \"Costs can seldom be awarded against a prevailing party\nunless he has been guilty of some fault or omission.\" In the\ncase of Hodgman, et al V. Atlantic Refining Co., 20 Fed (2d) 949,\nthe District Court for the District of Delaware held that while\nthe allowance of costs was discretionary, that that discretion\nis not an arbitrary one. \"In its discretion this court must be\ngoverned by the rule pertaining thereto. The general principle\nis that in suits in equity as in actions at law, the prevailing\nparty is entitled to costs. This principle must be applied\nChas. Stockdell Gray, Esq.,\nHoward H. Barker, Esq\n2\nunless the losing party can show that equity and good conscience\nrequires a different judgment.\"\nIt will therefore be seen that while costs can be\nallowed against a prevailing party there must be good reason for\ndoing SO. Judge Forman on last Friday stated that he felt Mr.\nEmmerglick should receive some compensation for the tremendo us\namount of work which he put into the case. Mr. Emmerglick stated\nto the court that he spent practically a year on the case in its\npreparation and trial and of course he spent six weeks in the\ntrial of the case. Judge Forman said that Mr. Emmerglick had\nrendered considerable aid to the court in arriving at a just and\nfair result, which of course was in favor of the adium Company\nand that he was very strongly of the opinion that even though\nhe did not have the power to grant costs and counsel fees, (which\nmeans the same thing for CO. nsel fees are taxed as part of the\ncosts) that he felt that the Radium Company should be magnanimous\nin the matter and likewise the insurance companies involved and\nthat they should pay something toward compensating Mr. Emmerglick\nfor his tireless work. He further stated that Mr. Emmerglick had\nput the presentation of the case on a very high plane and had\nnot attempted to get away from the facts, the scientific know-\nledge that was available and the law applicable and that this\nfair presentation of the ma tter in a great measure helped to\nsolve the question involved in favor of the Radium Company.\nMr. Emmerglick was thereupon asked by the court what\nhe felt would be a fair allowance and he stated to the cart that\nhe had an out of pocket expense which included an unpaid bill\nof the court stenographer for testimony, of appr oximately $1500.\nand that he felt that a fair allowance for his services would\nbe $7500. making up a total of $9000. Needless to say, I stated\nthat I was greatly shocked at the amount of Mr. Emmerglick's fee.\nHis disbursements of course are undoubtedly accurate and correct.\nI further stated to the court that I felt Mr. Emmerglick was\nproceeding on the theory that he was the successful and prevail-\ning party rather than the losing party and that under no cir-\ncumstances would my client countenance payment of any such sum.\nAfter a great deal of discussion the court finally suggested\n$2500. to Mr. Emmerglick plus $1500. for his disbursements, making\na total payment of $4000. The court also felt that of that sum\nthe Radium Company should pay $2000. and each of the insurance\ncompanies involved, namely, the Globe Indemnity and the New\nAmsterdam Casualty, 31000., with the understanding of all con-\ncerned that counsel would report back to their respective clients\nand advise the court as soon as practicable just what would be\npaid to Mr. Emmerglick, if anything.\nChas. Stockdell Gray, Esq\nHoward H. Barker, Esq\n#3\nIt is my recommendation that the Radium Company\nshould pay $2000. and that the Globe should pay $1000. So\nfar as the New Amsterdam is concerned, Mr. Edwin F. Smith who\nrepresents that Company will have to get authority from it\nto pay 1000.\nIn conclusion, the court stated that if the pa rties\nwere unwilling to make the foregoing payments he would regard\nhis suggestion as without ejudice to the allowance in the\nfinal decree of a much larger sum to Mr. Emmerglick, because\nhe knew if he allowed anything it would be appealed, and there-\nfore if the fee had to be allowed by a court order it would\nhave to be much larger and more in proportion to the services\nrendered. If we should decline to make the payment the\nprobability is that the allowance by the court which it will\nofficially make will be much larger. It may be as much as\n7500. but in all probability will be 5000. It is my opinion\nthat any such allowance could probably be reversed as improper.\nHowever, it is my recommendation as stated above, that if we\ncan make the payment suggested by the court it would be wise\nto do so. This is so in addition to the reasons already\nstated, for the further reason that Mr. Emmerglick appears\nin four other cases in which he promised us discontinuarces.\nof course there will be no appeal from Judge Forman's decision\nand Mr. Emmerglick promised that he will not engage in any\nother radium litigation, but that he will refuse to represent\nany other claimant. The result will be that we will get rid\nof four other cases and possibly more and in addition, Mr.\nEmmerglick 111 cease to be a factor in the prosecution of such\ncases; also there will be no appeal in the La Porte case.\nPlease let me have your instructions as soon as\npracticable.\nYours very truly,\nEAM:AG"
}