Opinion of the German Reichsgericht in the Matter of G., Plaintiff-Appellant v. F., Defendant-Respondent
Germany Reich Court
RGZ 142 70 (1933)
- Written by Curtis Parvin, JD
Facts
F (defendant) leased a large hotel property in Berlin. An economic depression followed, resulting in F's inability to make the lease payments. F retained G (plaintiff), a lawyer, to seek a reduced rent arrangement. The retainer agreement between G and F included a contingency fee arrangement whereby G would receive 10 percent—later reduced to 5 percent—of the savings F received from reduced rent. The agreement further required G’s participation in any settlement decisions. The hotel lessor initiated an action against F for unpaid rent, and G, on behalf of F, filed a counterclaim for alleged overpayment of rent. The parties reached a settlement agreement that reduced F’s rent substantially. F reneged on the contingency fee, leading G to sue F for the contingency fee plus interest. The trial court granted G the relief sought. F appealed, and the appellate court reversed the trial court’s decision, finding that the contingency fee was unenforceable. F appealed to the Reich Court—the highest civil court in Germany from 1879 to 1945.
Rule of Law
Issue
Holding and Reasoning (Per curiam)
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