Security-First Nat. Bank v. Bank of America Nat. Trust & Savings Ass'n

This is an appeal from an order in bankruptcy directing payment of attorney’s fees from certain oil lease proceeds as com- • pensation for legal services rendered in defending the bankrupt’s title to the land from which the oil lease proceeds were derived.

F. P. Newport Corporation, Ltd., referred to herein as Newport Corporation, became indebted to Security-First National Bank of Los Angeles, referred to herein as the Bank, and conveyed by trust instrument certain property as security for the indebtedness. Included in the property given as security were two parcels of real property in California the title to which was in litigation. The law firm of McAdoo & Neb-lett had agreed to represent the Newport Corporation in this title litigation for a fee of $25,000 contingent upon its successful termination.

Subsequently, on May 13, 1933, the Bank, the Newport Corporation and McAdoo & Neblett entered into an agreement concerning, inter alia, the further conduct of the litigation by McAdoo & Neblett. It was provided by this agreement that: “Mc-Adoo & Neblett shall faithfully conduct all legal work in the above entitled case of Middleton v. Newport, et al., Case No. 158914, until final…