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rcognize an assignment *by a consignor to a consignee or by a consignee to a consignor, but will not recognize an assignment to a stranger to the transportation records."
See Robinson Co. v. American Express Co., 38 Interst. Com. Com'n R. 733, 735. So far as this involves a construction of the act, we are unable to accept it, for reasons that have been indicated. Treating it as an administrative regulation, it of course constituted no limitation upon the jurisdiction of the commission, even were it consistent with a correct construction of the act, which we hold it was not. In any event, the commission had power to disregard the regulation, as in effect it did by recognizing the
a claimant by his attorney upon his personal obligation, does not, as applied to a contract with an attorney for a greater compensation, in existence at the time of its passage, the services contemplated by which had been substantially performed, deprive the attorney of liberty and property in violation of Const. Amend. 5, especially where at the time the contract was made there was no legislation conferring on the claimant any right of recovery, and the parties knew that Congress might refuse to recognize the claim or might impose such conditions as it deemed proper.
4. UNITED STATES 111-ATTORNEY ACCEPT
ING AMOUNT OF FEE AS LIMITED BY APPRO-
Under Omnibus Claims Act March 4, 1915, making it unlawful for any attorney to collect any sum exceeding 20 per cent, of the amount of any item appropriated, any contract to the contrary notwithstanding, where an atOther points discussed in the argument re- torney for a claimant received from the treasury quire no special comment.
assignments in this case.
It results that the judgments of the Circuit Court of Appeals must be reversed, and those of the District Court affirmed. Writs of error dismissed.
Writs of certiorari allowed. Judgments of Circuit Court of Appeals reversed, and judgments of District Court affirmed.
(253 U. S. 170)
CALHOUN v. MASSIE.
(Argued March 11, 1920. Decided May 17,
1920.) No. 294.
a warrant for 20 per cent. of the sum appropri ated, he took under the act and could not repudiate its provisions and any reservation by him of his rights under the contract was futile.
Mr. Justice McReynolds, Mr. Justice McKenna, Mr. Justice Van Devanter, and Mr. Justice Pitney, dissenting.
On Writ of Certiorari to the Supreme Court of Appeals of the State of Virginia.
Action by C. C. Calhoun against Bland Massie. Judgment for defendant on demur. rer was affirmed by the Supreme Court of Appeals of Virginia (123 Va. 673, 97 S. E. 576), and plaintiff brings certiorari. Affirmed.
See, also, 249 U. S. 596, 39 Sup. Ct. 289,
1. UNITED STATES 111-CONTRACT PROVI- 63 L. Ed. 794.
A provision of a contract employing an at-
APPROPRIATION FOR CLAIMS HELD TO LIMIT
Omnibus Claims Act March 4, 1915, § 4,
*Mr. Charles F. Consaul, of Washington, D. C., for petitioner.
Mr. James R. Caskie, of Lynchburg, for respondent.
Mr. Justice BRANDEIS delivered the opinion of the Court.
The Omnibus Claims Act (Act March 4, 1915, c. 140, 38 Stat. 962), made appropriations for the payment of 1,115 claims arising out of the Civil War which had, from time to time during the preceding 28 years, been referred by resolution of the House or of the Senate to the Court of Claims for investigation, either under the Bowman Act (Act March 3, 1883, c. 116, 22 Stat. 485), or under the Tucker Act (Act March 3, 1887, c.
359, 24 Stat. *505), or under section 151 of the Judicial Code (Comp. St. § 1142). Among the claims which that court reported favorably was one of Bland Massie, which had been referred to it by resolution of the House on February 3, 1911.1 By section 1 of
163d Congress, 2d Session, House Report No. 97; Senate Report No. 357; 63d Congress, 1st Session. House Doc. 64.
For other cases see same topic and KEY-NUMBER in all Key-Numbered Digests and Indexes
the Omnibus Claims Act (page 989), the Sec-[the federal Constitution, and hence is void. retary of the Treasury was directed to pay Massie $1,900. Section 4 of the act (page 996), provided as follows:
"That no part of the amount of any item appropriated in this bill in excess of twenty per centum thereof shall be paid or delivered to or received by any agent or agents, attorney or attorneys on account of services rendered or advances made in connection with said claim.
“It shall be unlawful for any agent or agents, attorney or attorneys to exact, collect, withhold or receive any sum which in the aggregate exceeds twenty percentum of the amount of any item appropriated in this bill on account of services rendered or advances made in connection with said claim, any contract to the contrary notwithstanding. Any person violating the provisions of this Act shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be fined in any sum not exceeding $1,000."
Massie had executed on April 18, 1911, an agreement as follows:
"Fee Agreement.-This agreement witnesseth: That I, Bland Massie, of Tyro, Nelson county, Virginia, have employed C. C. Calhoun, of Washington, D. C., as my attorney to prosecute my claim against the government of the United States for property taken by the federal forces during the late Civil War, and in consideration of his professional services in the prosecution of said claim I hereby agree and bind my heirs and legal representatives, to pay him, his heirs or legal representatives as a fee a sum equal to 50 per cent. of the amount which may be collected upon said claim, said fee to be a lien on any warrant which may be issued in payment of said claim."
Calhoun prosecuted Massie's claim before the Court of Claims and secured the allowance of a motion to transmit its report to Congress, which thereafter made the appropriation above stated. On May 5, 1915, the government paid the $1,900 by means of two treasury warrants, one for $380 (20 per cent. thereof), made payable to Calhoun, the other for $1,520 (80 per cent. thereof), made payable to Massie. Calhoun demanded of Massie a further sum of $570, equal to 30 per cent. of the claim. Payment was refused; and he brought this suit in a state court of Virginia to recover the amount, claiming that the warrant for 20 per cent. had been accepted by him without waiving or releasing his right under the contract to the balance. A declaration setting forth in substance the above facts was demurred to on the ground that recovery was prohibited by section 4 of the act under which the appropriation was made. The demurrer was sustained and judgment entered thereon was affirmed by the Supreme Court of Appeals of the State of Virginia (123 Va. 673, 97 S. E. 576). The case comes here on writ of certiorari (249 U. S. 596, 39 Sup. Ct. 289, 63 L. Ed. 794); Calhoun having contended in both lower courts, as here, that section 4 deprives him of liberty and property guaranteed by the Fifth Amendment to
For nearly three-quarters of a century Congress has undertaken to control in some measure the conditions under which claims against the government may be prosecuted. Its purpose has been in part to protect just claimants from extortion or improvident bargains and in part to protect the treasury from frauds and imposition. See United States v. Van Leuvan (D. C.) 62 Fed. 52, 56. While recognizing the common need for the services of agents and attorneys in the presentation of such claims and that parties
would often be denied the opportunity *of securing such services if contingent fees were prohibited (Taylor v. Bemiss, 110 U. S. 42, 45, 3 Sup. Ct. 441, 28 L. Ed. 64) Congress has manifested its belief that the causes which gave rise to laws against champerty and maintenance are persistent. By the enactment from time to time of laws prohibiting the assignment of claims and placing limitations upon the fees properly chargeable for services2 Congress has sought both to prevent the stirring up of unjust claims against the government and to reduce the temptation to adopt improper methods of prosecution which contracts for large fees contingent upon success have sometimes been supposed to encourage. The constitutionality of such legislation, although resembling in its nature the exercise of the police power, has long been settled. Marshall v. Baltimore & Ohio Railroad Co., 16 How. 314, 336, 14 L. Ed. 953; United States v. Hall, 98 U. S. 343, 354, 555, 25 L. Ed. 180; Ball v. Halsell, 161
Assignment of Claims against the United States: Act July 29, 1846, c. 66, 9 Stat. 41; Act Feb. 26, 1853, c. 81, § 1, 10 Stat. 170; Rev. Stat. 3477 (Comp. St. § 6383). Repayment of moneys collected by direct tax: Act March 2, 1891, c. 496, § 3, 26 Stat. 822. Indian depredation claims: Act March 3, 1891, c. 538, § 9, 26 Stat. 851, 854. Pensions: R. S. 4785 (Act July 8, 1870, c. 225, § 7, 16 Stat. 193, 194, as amended by Act July 4, 1884, c. 181, § 3, 23 Stat. 98, 99 [Comp. St. §§ 9112, 9115]); R. S. § 5485 (Act March 3, 1873, c. 234, §§ 31, 32, 17 Stat. 566, 575 [Comp. St. § 9114]); R. S. § 4711 (Act March 3, 1873, c. 234, § 17, 17 Stat. 566, 572 [Comp. St. § 8999]); Act Jan. 25, 1879, c. 23, § 4, 20 Stat. 265 (Comp. St. § 9113); Act June 27, 1890, c. 634, § 4, 26 Stat. 182, 183 (Comp. St. § 8938); Act 3, 1891, c. 548, 26 Stat. 1081, 1082; Act Aug. 5, 1892, c. 379, 2, 27 Stat. 348, 349 (Comp. St. § 9071); Act Feb. 28, 1903, c. 858, § 3, 32 Stat. 920, 921 (Comp. St. $8995); Act April 19, 1908, c. 147, § 3, 35 Stat. 64 (Comp. St. § 8985); Act May 28, 1908, c. 208, 35 Stat. 418, 419; Act Sept. 8, 1916, c. 470, § 4, 39 Stat. 844, 845 (Comp. St. § 8981d); Act July 16, 1918, c. 153, § 2, 40 Stat. 903, 904 (Comp. St. Ann. Supp. 1919, § 8985b). Pay and bounty of colored soldiers: Act March 3, 1873, c. 182, § 2, 20 Stat. 377, 402 (Comp. St. § 3969). Arrears of pay or allowances in connection with Act Dec. 22, 1911, c. services in the Civil War:
March 3, 1891, c. 542, 26 Stat. 948, 979; Act March
6, 37 Stat. 47, 49 (Comp. St. § 2204). Mississippi Choctaws: Act May 31, 1900, c. 598, 31 Stat. 221, 237. Services for Indians: Rev. Stat. § 2104 (Comp. St. § 4088); Act June 30, 1913, c. 4, § 17, 38 Stat. 77, 95; Act Aug. 1, 1914, c. 222, § 17, 38 Stat. 582, 599.
Claims under War Risk Insurance Act: Act June 12, 1917, c. 26, § 8, 40 Stat. 102, 104 (Comp. St. 1918, Comp. St. Ann. Supp. 1918, § 514ee).
U. S. 72, 82, 84, 16 Sup. Ct. 554, 40 L. Ed., statute is impossible, because the act forbids 622. the collection or receipt of any compensation in excess of 20 per cent.
[1-3] The provision in the contract sued on purporting to give a lien upon any warrant issued was void under section 3477 of the Revised Statutes (Comp. St. § 6383). Nutt v. Knut, 200 U. S. 12, 20, 26 Sup. Ct. 216, 50 L. Ed. 348. It is urged that the act here in question should be construed as limiting only the proportion of the specific funds received from the government which may be applied to payment of attorney's fees; but the second paragraph of the law leaves no room for construction. It provides that: "It shall be unlawful for any torney to * * * receive any
In the case at bar there are special reasons why the contract cannot prevail over the statute enacted later. At the time when the contract was entered into there was no legislation, general or special, which conferred upon Massie any right of recovery even if he should establish to the satisfaction of Congress that his claim was equitable. A statute making an appropriation to pay the claim was thus a condition precedent to liability on the part of Massie to Calhoun; and the thing contracted for was Calhoun's aid in securing its enactment. The aid was to which in the aggregate exceeds twenty per be given by representing Massie before the centum" of the claim. Court of Claims.
* 2 *
Calhoun contends, however, that if the act is construed as limiting the amount recoverable from a claimant upon his personal obligation, it is void as applied to contracts in
existence at the time of its passage, at least
where, as here, the services contemplated had then been substantially performed.
That an act limiting the compensation of attorneys in the prosecution of claims against the government is valid also as to
But both of the parties
knew that, although Calhoun might have success before the Court of Claims, Congress would still be free to refuse both to recognize the claim as an equitable one and to make an appropriation for its payment. They also knew that, if it concluded to grant relief, Congress was free to do so upon such conditions as it deemed proper. Compare Ball v. Halsell, supra, 161 U. S. 82, 84, 16 ed States, 7 Wall. 113, 117, 19 L. Ed. 85. In Sup. Ct. 554, 40 L. Ed. 622; Kendall v. Unitcontracts which had been entered into before view of the past action of Congress limiting its passage was expressly held in Ball v. Halsell, supra. attorney's fees, referred to above, it was at The act there in question least conceivable when the contract was was passed 17 years after the date of the made that Congress might, as it proved, be contract, and the attorney had performed unwilling to enact any legislation without important services before its enactment. Here, it is said, substantially all the services assuring itself that the benefits thereof . required of Calhoun had been performed would not inure *largely to others than those when the act was passed. The difference in named in the act. Assent by Calhoun to the the percentage of services performed cannot insertion in the act of a condition such as here affect the legal result. An appropriate this, which he might reasonably have conexercise by a state of its police power is con- templated would be required to insure its sistent with the Fourteenth Amendment al-passage, was therefore, implied in the conthough it results in serious depreciation of property values; and the United States may, consistently with the Fifth Amendment, impose for a permitted purpose restrictions upon property which produce like results. Lottery Case, 188 U. S. 321, 357, 23 Sup. Ct. 321, 47 L. Ed. 492; Hipolite Egg Co. v. United States, 220 U. S. 45, 58, 31 Sup. Ct. 364, 55
L. Ed. 364; Hoke v. United States, 227 U.
tract to aid in securing the legislation. Compare The Kronprinzessin Cecilie, 244 U. S. 12, 22, 23, 37 Sup. Ct. 490, 61 L. Ed. 960.
 Furthermore, Calhoun accepted and received from the treasury a warrant for 20 per cent. of the sum appropriated. The money was paid and it was received under the act which provided that it was unlawful to collect any sum in excess of 20 per cent., "any contract to the contrary notwithstanding." Calhoun cannot take under the act and repudiate its provisions. Compare Shepard v. Barron, 194 U. S. 553, 567, 24 Sup. Ct. 737, 48 L. Ed. 1115; Grand Rapids & IndiL. Ed. The sovereign right of the gov-ana Ry. Co. v. Osborn, 193 U. S. 17, 29, 24 Sup. ernment is not less because the property af- Ct. 310, 48 L. Ed. 598; Interstate Railway fected happens to be a contract. Louisville Co. v. Massachusetts, 207 U. S. 79, 28 Sup. & Nashville Railroad Co. v. Mottley, 219 U. Ct. 26, 52 L. Ed. 111, 12 Ann. Cas. 555. The S. 467, 484, 31 Sup. Ct. 265, 55 L. Ed. 297, allegation in the declaration that he accepted 34 L. R. A. (N. S.) 671; Union Dry Goods the 20 per cent. "without waiving or reCo. v. Georgia Public Service Corporation, leasing any of his rights under the aforesaid 248 U. S. 372, 39 Sup. Ct. 117, 63 L. Ed. 309. contract" was doubtless intended as a stateHere, unlike New York Central v. Gray, 239 ment that the amount collected from the U. S. 583, 587, 36 Sup. Ct. 176, 60 L. Ed. 451, government was not accepted as a full seta performance of a substitute for the obligation undertaken and later prohibited by the
See 51 Cong. Rec. p. 324; 52 Cong. Rec. 5289, 5316.
ment was obviously erroneous, and that Calhoun would have committed a misdemeanor if he had accepted a fee exceeding the 20 per cent.
tlement of his rights against the defendant In effect, the court now holds that stateunder the contract. But it was a protestation totally at variance with his conduct. The payment to him by the treasury of the 20 per cent. could be made only under the act. It must be held to have been accepted according to the terms of the act. Any reservation which he may have made in words was futile. Capital Trust Co. v. Calhoun, 250 U. S. 208, 218, 219, 39 Sup. Ct. 486, 63 L. Ed. 942.
Mr. Justice MCREYNOLDS, dissenting. In 1911 Calhoun made a lawful agreement with Massie to prosecute the latter's claim
As to Certain "Special Reasons Why the
(1) It is said that, when he executed the contract of employment, Calhoun impliedly assented to the insertion in any future appropriation act of a condition like the one under consideration; therefore he cannot recover. This assumes: First, a construction of the act in direct conflict with the meaning heretofore attributed to it; and, second, that so construed it is within the power of Congress. If these two assumptions are correct, of course there is no right to recover. This special reason can only serve to mislead. (2) It is further said that, as Calhoun received 20 per cent. of the amount appropriat
against the United States *for property taken during the Civil War (Taylor v. Bemiss, 110 U. S. 42, 3 Sup. Ct. 441, 28 L. Ed. 64); and Massie expressly bound himself to pay, as a fee for such services, "a sum equal to 50 per cent. of the amount which may be collected, said fee to be a lien on any warrant," etc. Calhoun performed his full part in stricted by an act which declared unlawful the colaccordance with the contract. As a result of his proper efforts, Congress finally approved the claim and appropriated $1,900 to pay it. Act March 4, 1915, c. 140, 38 Stat. 962, 989. But the same act (section 4, p. 996) provided that not more than 20 per cent. of the amount appropriated should be paid, or delivered to, or received by, any attorney for services, etc.; also:
"It shall be unlawful for any agent or agents, attorney or attorneys to exact, collect, withhold or receive any sum which in the aggregate exceeds twenty per centum of the amount of any item appropriated in this bill on account of services rendered or advances made in connection with said claim, any contract to the contrary notwithstanding. Any person violating the provisions of this Act shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be fined in any sum not exceeding $1,000."
Capital Trust Co. v. Calhoun, 250 U. S. 208, 39 Sup. Ct. 486, 63 L. Ed. 942, affirms the power of Congress to exempt the appropriated fund from any demand for counsel fees. In that case Calhoun, relying upon a contract like the one presently before us, recovered a judgment in the state court for the difference between 20 per cent. received from the treasury and fifty per cent. of the appropriation. The matter came here, and we expressly declared (250 U. S. 216, 39 Sup. Ct. 488, 63 L. Ed. 492):
"If the judgment only establishes a claim against the administrator to be satisfied, not out of the moneys received from the United States, but from other assets of the estate, a situation is presented which it was said in Nutt v. Knut, 200 U. S. 12, 21, would not encounter legal objection. In other words, the
limitation *in the act appropriating the money to 20 per cent. as the amount to be paid to an agent or attorney would have no application or
lection of anything more, he thereby in effect estopped himself from making a personal demand against his client. But this again assumes a construction of the act contrary to what we have declared, and further assumes that so construed it is valid. If these assumptions are correct, no further discussion is needed. This special reason lacks substance and can serve no good purpose.
The Meaning of Section 4.
Considering the definite statement concerning the true meaning of this section made 12 months ago in Capital Trust Co. v. Calhoun, 250 U. S. 208, 39 Sup. Ct. 486, 63 L. Ed. 942, and quoted above, it would seem at least unusual now to announce a wholly different view accompanied by the mere assertion that there is "no room for construction." *180
No mention is made of what was then said in very plain terms. Of course this has been accepted as authoritative both by lawyers and courts. The result is necessarily injurious both to the court and the public.
In United States v. Delaware & Hudson Co., 213 U. S. 366, 408, 29 Sup. Ct. 527, 536 (53 L. Ed. 836) this was said:
"Where a statute is susceptible of two constructions, by one of which grave and doubtful constitutional questions arise and by the other of which such questions are avoided, our duty is to adopt the latter."
As that statement has been repeated several times, it would seem worthy of some consideration now.
I presume nobody doubts that Congress has power to prescribe reasonable rules concernters in United States courts, and to regulate ing champerty, maintenance or kindred matassignments of claims against the government. But, under the adopted construction,
section 4 (Act March 4, 1915) destroys an, by Mr. Justice Gray in Ball v. Halsell, whereentirely lawful contract made long before its in he pointed out the clear distinction bepassage, deprives counsel of his right to en-tween the two cases, ought not to be lightly force the personal liability of his client to disregarded. pay for services already performed, and renders criminal the acceptance by him of more than an arbitrarily specified amount.
Marshall v. Baltimore & Ohio R. R. Co., 16 How. 314, 316, 14 L. Ed. 953, United States v. Hall, 98 U. S. 343, 354, 355, 25 L. Ed. 180, and Ball v. Halsell, 161 U. S. 72, 84, 16 Sup. Ct. 554, 40 L. Ed. 622, are referred to as authority for such oppressive legislation. They give it no support.
Marshall v. Baltimore & Ohio R. R. Co. was an attempt to collect compensation for lobbying; and the holding was that a contract is void, as against public policy, and can have no standing in court by which one party stipulates to employ a number of secret agents in order to obtain the passage of a particular law by the Legislature of a state, and the other party promises to pay a large sum of | money in case the law should pass. The case appears unimportant in connection with this controversy.
In United States v. Hall the court ruled Congress has power to declare that embezzle
ment or fraudulent con*version to his own use by a guardian of pension money received on behalf of his ward from the Government is an offense against the United States. This case might be relevant if Calhoun were seeking to reach the fund appropriated by Congress; but he is not.
In Ball v. Halsell, 161 U. S. 82, 16 Sup. Ct. 556, 40 L. Ed. 622, an attorney sought to recover under a written agreement, concerning which this court said:
"The instrument was an unilateral contract, not signed by the attorney, nor containing any
It is certainly a very serious thing to decide that Congress, by its arbitrary fiat, may wholly deprive counsel of the right to enforce payment of compensation for long-continued efforts theretofore lawfully put forth, and prevent him, indeed, from accepting anything therefor. If a limit may be set at 20 per
cent., any payment may be proscribed. We should follow Capital Trust Co. v. Calhoun, and reverse the judgment below.
The Fifth Amendment was intended to protect the individual against arbitrary exercise of federal power. It declares no person shall be deprived of life, liberty or property without due process of law; and this inhibition protects every man in his right to engage in honest and useful work for compensation. Adair v. United States, 208 U. S. 161, 28 Sup. Ct. 277, 52 L. Ed. 436, 13 Ann. Cas. 764; Coppage v. Kansas, 236 U. S. 1, 35 Sup. Ct. 240, 59 L. Ed. 441, L. R. A. 1915C, 960; Adams v. Tanner, 244 U. S. 590, 37 Sup. Ct. 662, 61 L. Ed. 1336, L. R. A. 1917F, 1163, Ann. Cas. 1917D, 973.
Mr. Justice MCKENNA, Mr. Justice VAN DEVANTER, and Mr. Justice PITNEY concur in this dissent.
(253 U. S. 182)
NEWMAN et al. v. MOYERS et al. (Argued March 11, 1920. Decided May 17, 1920.) No. 85.
agreement on his part, and-so long, at least, 1. UNITED STATES 94-STATUTE LIMITING
as it had not been carried into execution-might be revoked by the principal, or might be disregarded by him in making a settlement with the United States, or might be treated by him as absolutely null and void in any contest between him and the attorney. * * By the very terms of the contract, the attorney was to be paid only out of money recovered and received by him from the United States."
The case is wholly unlike the one now before us. Mr. Justice Gray took pains to explain the difference between it and Davis v. Commonwealth, 164 Mass. 241, 41 N. E. 292, 30 L. R. A. 743, where the Massachusetts court ruled that an agent of the state employed to prosecute a claim against the United States could recover compensation notwithstanding the act of Congress appropriating money to meet the claim provided that no part of such sum should be paid by the state to any attorney under previous
COMPENSATION OF ATTORNEYS FOR CLAIMANTS
Omnibus Claims Act March 4, 1915, § 4, limiting the compensation of attorneys for claimants in payment of whose claims appropriations are therein made to 20 per cent. of the amount appropriated, is valid.
2. APPEAL AND ERROR 1169(1)-JUDGMENT
Under Omnibus Claims Act March 4, 1915, § 4, limiting the compensation of attorneys for claimants, where attorneys for a claimant sued the claimant and the treasury officials to compel payment from the amount appropriated of a greater percentage than that provided by the statute, plaintiffs were seeking to recover moneys ceiving, and the overruling of a motion by the which they were prohibited by statute from retreasury officials to dismiss the bill was error for which the judgment must be reversed, wheth contract. er or not they or the government have any inDavis v. Commonwealth and the language terest entitling them to appeal.
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