your liquid debt." Montgomery made no complaint about the amount of the fee.
29. On April 26, 1960, plaintiff Jacobo Rey Elmore wrote a letter to Charles B. Montgomery telling him that he had not answered his previous five letters. This letter also stated: "Further, as I have not received any refusal from you I take for granted that you agree in all respects with the fee and form of payment suggested, which is perfectly safe for you and for myself."
30. During the period of time from October 7, 1957, when Dr. Rey was first contacted by Montgomery, and throughout the period of time until the final settlement in 1963, and thereafter, Dr. Rey worked continually from time to time on Montgomery's behalf.
31. On May 14, 1958, plaintiff Jacobo Rey Elmore wrote a letter to Charles B. Montgomery informing him of an action by Dr. Yrigoyen, a prominent and influential Peruvian lawyer seeking to recover $70,000.00 as the balance of a $270,000.00 legal fee relating to the award of the original contract. He admitted being paid $200,000.00. Dr. Rey requested information from Montgomery relative to this debt.
32. On May 20, 1958, C. B. Montgomery sent a letter to plaintiff Jacobo Rey Elmore informing him that Dr. Yrigoyen was paid a total of $350,000.00 and that he considered that he was paid in full. The letter also stated: "I am anxious to have all affairs regarding the creditors and the government settled as quickly as possible and trust this suit of Dr. Yrigoyen does not delay settlement * * * I have sent your additional power of attorney to New York City for the Peruvian Seal."
33. On May 22, 1958, plaintiff Jacobo Rey Elmore wrote a letter to Charles B. Montgomery informing and discussing with him the Yrigoyen suit against Montgomery. Dr. Rey suggested that Montgomery appoint Dr. Carlos Thorne to represent him in this action.
34. Without Dr. Rey's knowledge, Montgomery designated Dr. Rey to represent him in the Yrigoyen action by executing a Power of Attorney on May 27, 1958 in the office of Consul General of Peru in New York. This appointment was made by Montgomery in spite of Dr. Rey's suggestion that Dr. Thorne be appointed. Dr. Rey was not informed of the appointment until April of 1963.
35. After Dr. Rey wrote several letters, on April 24, 1963, plaintiff Jacobo Rey Elmore sent a letter to Charles B. Montgomery informing him that he had been continuously working on his behalf "to reach an agreement with the Peruvian government according to your instructions." The letter further asked for proof of payments totaling $350,000.00 to Dr. Yrigoyen for use in the Yrigoyen suit against Charles B. Montgomery. The letter concluded: "if you can give us any of that information it would be very helpful not only in the suit initiated by Dr. Yrigoyen but also in the agreement which we are working with the Peruvian government."
36. No reply was made by either defendant to the letter referred to in the preceding paragraph, embodied in plaintiff's exhibit No. 12.
37. On June 5, 1963, plaintiff Jacobo Rey Elmore wrote a letter to Charles B. Montgomery again requesting proof for use in the Yrigoyen action against Montgomery. On July 5, 1963, plaintiff Jacobo Rey Elmore cabled Charles B. Montgomery of the urgent need for the checks with which Yrigoyen was paid. No answer to this cable was made by either defendant. On October 18, 1963, plaintiff Jacobo Rey Elmore wrote a letter to Charles B. Montgomery informing him of the progress in the Yrigoyen case and again making a request for copies of the receipts or checks or other documents to prove payment of $350,000.00 to Dr. Yrigoyen. Neither defendant ever supplied proof to plaintiff of payments by Montgomery Construction Company to Dr. Yrigoyen of the sum of $350,000.00.
38. Despite Montgomery's lack of cooperation in the Yrigoyen suit, Dr. Rey defended Montgomery before a single judge who found a judgment against him in the sum of $70,000.00. On appeal to the Superior Court, three judges reversed the lower court. Dr. Yrigoyen appealed to the Supreme Court, which decided that the Superior Court had found in error, and directed that Court to hear the case over. This time, the Superior Court favored Dr. Yrigoyen. Upon appeal to the Supreme Court, the decision was upheld. This litigation lasted from April of 1963 until September 8, 1965, when the Supreme Court finally resolved the litigation in favor of Dr. Yrigoyen.
39. By reason of Dr. Rey's activities on defendants' behalf, the creditors were paid by the Peruvian government, obviating the possibility of personal actions against defendants in the United States.
40. The reasonable value of the services performed by plaintiff for defendants is $12,500.00.
CONCLUSIONS OF LAW
1. The jurisdiction of the Court is based upon diversity of citizenship. 28 U.S.C.A. § 1332. The amount in controversy exceeds $10,000.00, exclusive of costs and interest.
2. This action is not barred by any statute of limitations.
3. Defendant Charles B. Montgomery appointed Plaintiff, Jacobo Rey Elmore, his attorney in the government settlement of the Choclococha project and the Yrigoyen action; and an Attorneyclient relationship existed between the two during the events in question.
4. Plaintiff is entitled to judgment against defendants in the amount of $12,500.00.
5. Defendant, Charles B. Montgomery, Jr. as a partner, is liable jointly for partnership obligations incurred before he became a partner.
6. There was no conflict of interest in Plaintiff's representation of defendants.
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