Legal Research AI

Means v. Montana Power Co.

Court: Montana Supreme Court
Date filed: 1981-03-04
Citations: 625 P.2d 32, 191 Mont. 395
Copy Citations
13 Citing Cases

                                No. 80-266
                  IN THE SUPREME COURT OF THE STATE OF MONTANA
                                   1981


JOHN R. MEANS and MARY MEANS,
MONTANA DEPARTMENT OF OF NATURAL
RESOURCES and CONSERVATION, an
agency of the State,
                             Plaintiffs and Appellants,


THE MONTANA POWER COMPANY, A
Montana Corporation,
                             Defendant and Respondent.


Appeal from:      District Court of the Fourth Judicial District,
                  In and for the County of Missoula, Montana
                  Honorable John Henson, Judge presiding.
Counsel of Record:
    For Appellants:

          Donald D. MacIntyre, Dept. of Natural Resources, argued,
           Helena, Montana
b         ~         '
          Williams Law Firm, Missoula, Montana
          Richard Ranney argued, Missoula, Montana



                                 Submitted:   January 13, 1981
                                   Decided:   m 4 - 1981
                                               R
Filed :
          4vlkl4 4 - 79!37
Mr. J u s t i c e Gene B. D a l y d e l i v e r e d t h e O p i n i o n o f t h e C o u r t .
            This appeal         a r i s e s from an o r d e r a p p o i n t i n g respon-

dent's       attorney      lead       counsel     and p r o v i d i n g     for    reasonable

c o m p e n s a t i o n and a n o r d e r     f i x i n g t h a t compensation e n t e r e d

by    the    District        Court      for     the     Fourth       Judicial       District,

M i s s o u l a C o u n t y , t h e H o n o r a b l e J o h n S. Henson p r e s i d i n g .

            T h e r e o c c u r r e d on J u l y 1 6 , 1 9 7 7 , a f i r e i n t h e P a t t e e

Canyon a r e a o f M i s s o u l a C o u n t y ,       Montana.           The f i r e c a u s e d

e x t e n s i v e damage t o b o t h homes and l a n d i n t h e a r e a .                    The

Montana       Department         of    Natural         Resources        and      Conservation

(DNRC)      f o u g h t t h e b l a z e and made a r r a n g e m e n t s f o r a n i n v e s -

t i g a t i o n i n t o t h e causes of t h e f i r e .             I t was l a t e r d e t e r -

mined     t h a t power      l i n e s of     t h e Montana Power             Company c o u l d

h a v e b e e n t h e c a u s e o f t h e P a t t e e Canyon f i r e .

            A complaint         f o r damages t o t h e i r p r o p e r t y c a u s e d by

t h e f i r e was f i l e d by J o h n and Mary Means on March 1 4 , 1 9 7 8 .

F i l i n g of t h e c o m p l a i n t had f o l l o w e d e x t e n s i v e d i s c o v e r y by

S h e l t o n C . W i l l i a m s , a t t o r n e y f o r Mr. and Mrs. Means.

            On December         21,    1 9 7 8 , DNRC       filed     i t s own c o m p l a i n t

s e e k i n g a p p r o x i m a t e l y $ 5 3 2 , 0 0 0 f o r damages t o s t a t e l a n d and

costs for extinguishing the f i r e .

            On March 3 0 ,        1 9 7 9 , t h e Means c a s e and t h e DNRC c a s e

were     consolidated           by s t i p u l a t i o n .      Subsequently,            other

parties       who    had    suffered        l o s s e s c a u s e d by     the    fire      filed

additional          complaints        against         the    Montana       Power     Company.

Altogether        t h e r e were t h i r t y - o n e    cases filed           in t h e Fourth

Judicial       District        Court,       Missoula         County,      except      for     one

which       Williams       filed      in    the     Federal        District        Court      for

Montana.         T h e r e were a p p r o x i m a t e l y    ten    attorneys or          firms

who u l t i m a t e l y became i n v o l v e d i n t h e l i t i g a t i o n f o r t h e
various plaintiffs.

            The Montana Power Company, by m o t i o n on May 23, 1 9 7 9 ,

sought c o n s o l i d a t i o n of a l l c a s e s pending i n D i s t r i c t Court.

Shortly        afterwards,             on    July      27,     1979,       Williams         filed          a

motion s e e k i n g an a p p o i n t m e n t of l e a d c o u n s e l .

            The     motion         for      consolidation            for     the     purpose              of

d e t e r m i n i n g l i a b i l i t y was g r a n t e d     on A u g u s t 8,       1979.           The

order      provided,            however,        that     the     damage        aspect           of    the

a c t i o n s be b i f u r c a t e d w i t h s e p a r a t e t r i a l s b e i n g e n v i s i o n e d ,

i f necessary, i n t h i s regard.

           On O c t o b e r       30,       1979,    Williams        filed      a    stipulation

whereby c o u n s e l f o r a l l p a r t i e s , e x c e p t DNRC,              agreed t o h i s

b e i n g l e a d c o u n s e l and t o h i s c o m p e n s a t i o n t h e r e f o r .              As    a

result      of     the       stipulation,           Williams      represented             t h i r t y of

thirty-one         parties         for      claims t o t a l i n g     $2,242,875.75.                     On

November         1, 1 9 7 9 ,      the      District      Court,       without        a     hearing,

ordered t h e appointment of Williams a s l e a d counsel                                       in a l l

c o n s o l i d a t e d c a s e s , i n c l u d i n g t h e a c t i o n f i l e d by DNRC.            The

o r d e r a l s o p r o v i d e d t h a t t h e W i l l i a m s Law F i r m be r e a s o n a b l y

compensated            for    services heretofore               or     hereafter          rendered.

The amount o f c o m p e n s a t i o n was t o be d e t e r m i n e d by a g r e e m e n t

of   the parties              o r by     the    court        after    t e r m i n a t i o n of       lead

counsel's responsibilities.

           The m a t t e r p r o c e e d e d t o w a r d t h e s c h e d u l e d t r i a l d a t e

o f December 3 ,             1 9 7 9 , w i t h d i s c o v e r y p r o c e e d i n g and numerous

p r e l i m i n a r y motions with Williams a s l e a d counsel.                            Prior t o

trial      s e t t l e m e n t n e g o t i a t i o n s began     w i t h DNRC       and v a r i o u s

home o w n e r s s e t t l i n g t h e i r         claims for        $1,215,000            of    which

$425,000         was     for     DNRC.         A    group      referred        to    as     the       raw

l a n d o w n e r s f a i l e d t o r e a c h a s e t t l e m e n t and p r e p a r a t i o n on
t h e i r behalf continued for the scheduled t r i a l date.

            On December           3,     1979,     the       presiding          judge      withdrew
from t h e c a s e , and t h e t r i a l d a t e was v a c a t e d .                 A new j u d g e

and t r i a l d a t e w e r e s u b s e q u e n t l y s e t , and t h e raw l a n d o w n e r s
proceeded t o t r i a l .
            On    December        28,     1979,         Williams,          as    lead      counsel,

a f t e r f a i l i n g t o r e a c h a n a g r e e m e n t w i t h D N R C , moved f o r a

d e t e r m i n a t i o n of   compensation.              Af t e r a s e r i e s o f h e a r i n g s
the     District         Court     entered         an     order       on    March       14,      1980,

granting         t h e W i l l i a m s Law      Firm       $47,222.22           to   be     paid    by
DNRC   .
            DNRC      appeals      both      the    order        of     November          1,     1979,

appointing          lead       counsel    and      the order          of    March 1 4 ,          1980,
determining compensation.
            The     following          issues      have       been     presented            to    this

Court f o r review:
            1.     Did t h e D i s t r i c t C o u r t e r r i n f a i l i n g t o h o l d a n
evidentiary hearing p r i o r t o entering its findings of f a c t ,

c o n c l u s i o n s of l a w and o r d e r a p p o i n t i n g l e a d c o u n s e l ?
            2.      Did t h e D i s t r i c t C o u r t e r r i n a p p o i n t i n g a l e a d

counsel?
            3.      Did t h e D i s t r i c t C o u r t e r r         i n o r d e r i n g DNRC t o
pay c o m p e n s a t i o n t o l e a d c o u n s e l ?
            4.      Did t h e D i s t r i c t C o u r t a b u s e i t s d i s c r e t i o n i n

a w a r d i n g c o m p e n s a t i o n i n t h e amount o f $ 4 7 , 2 2 2 . 2 2 ?
            A s t o t h e f i r s t i s s u e on a p p e a l , DNRC would h a v e t h i s

C o u r t remand t h i s a c t i o n t o t h e D i s t r i c t C o u r t d u e t o i t s
f a i l u r e t o hold an e v i d e n t i a r y h e a r i n g p r i o r t o e n t e r i n g t h e
November 1, 1 9 7 9 , o r d e r a p p o i n t i n g l e a d c o u n s e l .               The b a s i s
of    this       contention       is     that      since       there       i s no       record      to
review, t h i s Court is unable t o d e t e r m i n e i f t h e r e is s u f f i -

c i e n t e v i d e n c e t o s u p p o r t t h e f i n d i n g s made.            W e must d i s -

agree.

            The o r d e r      of     November         1, 1 9 7 9 ,     was      entered    in    re-
s p o n s e t o a m o t i o n u n d e r R u l e 4 2 ( a ) , M.R.Civ.P.               (consolida-
tion).        R u l e 5 2 ( a ) , M.R.Civ.P.,             i n pertinent part, provides
that,      " [ f l i n d i n g s of        f a c t and c o n c l u s i o n s o f    l a w a r e un-
n e c e s s a r y on d e c i s i o n s o f m o t i o n s u n d e r       R u l e s 12 o r 56 o r
any o t h e r motion           . . ."          Findings of f a c t being unnecessary

f o r a r u l i n g on s a i d m o t i o n s , t h e D i s t r i c t C o u r t is u n d e r no

o b l i g a t i o n t o p r o v i d e an e v i d e n t i a r y h e a r i n g .
            The D i s t r i c t C o u r t i n t h i s i n s t a n c e , however,             though
u n d e r no o b l i g a t i o n t o do s o , c h o s e t o make f i n d i n g s o f f a c t
upon which i t b a s e d i t s c o n c l u s i o n s o f l a w and o r d e r .                   This
C o u r t now b e i n g p r e s e n t e d w i t h t h e o r d e r f o r e x a m i n a t i o n , it

i s i n c u m b e n t upon t h i s C o u r t t o r e v i e w t h e f i n d i n g s a s w e l l

a s t h e a p p l i c a b l e law.           S e e Timmerman v . G a b r i e l ( 1 9 7 0 ) , 1 5 5
Mont.      294,      470     P.2d      528;        section      3-2-204(5),          MCA;     Upper

Missouri G         & T     E l e c t r i c C o o p e r a t i v e , I n c . v . McCone E l e c t r i c
Cooperative, Inc.                ( 1 9 7 1 ) , 1 5 7 Mont.       239,    484 P.2d       741.       It

is n o t n e c e s s a r y , however,             t h a t t h i s a c t i o n be remanded f o r

an e v i d e n t i a r y h e a r i n g .
            Here, t h e f i n d i n g s i n d i s p u t e a r e :         (1) t h a t t h e s i z e

and c o m p l e x i t y o f t h e c a s e demands t h e a p p o i n t m e n t o f a l e a d

c o u n s e l ; and ( 2 ) t h a t a l m o s t a l l o f t h e d i s c o v e r y and t r i a l
p r e p a r a t i o n h a s b e e n d o n e by W i l l i a m s w i t h t h e i m p l i e d con-
sent     of    DNRC.          An    examination            of    the    submitted          District
C o u r t f i l e ( a s t o t h e c o m p l e x i t y o f t h e c a s e ) and a r e v i e w
o f t h e h e a r i n g s h e l d i n r e g a r d t o t h e o r d e r s e t t i n g compen-
sation        ( a s t o t h e work d o n e by W i l l i a m s w i t h t h e i m p l i e d
c o n s e n t o f DNRC) p r o v i d e s a s u f f i c i e n t b a s i s f o r r e v i e w .

           The s e c o n d      i s s u e on a p p e a l i n v o l v e s a d e t e r m i n a t i o n

o f w h e t h e r o r n o t t h i s a c t i o n was a n a p p r o p r i a t e o n e f o r a

l e a d c o u n s e l t o be a p p o i n t e d .

           As     t h e c a s e s c i t e d by b o t h DNRC and W i l l i a m s                indi-

cate,     t h e appointment of                 lead counsel            i s made i n c o n j u n c -

t i o n w i t h a m o t i o n and o r d e r f o r c o n s o l i d a t i o n and h a s b e e n

p r i m a r i l y used i n f e d e r a l c o u r t p r o c e e d i n g s i n v o l v i n g m u l t i -

party litigation.                S e e I n Re A i r C r a s h D i s a s t e r a t F l o r i d a

E v e r g l a d e s ( 5 t h C i r . 1 9 7 7 ) , 549 F.2d 1 0 0 6 ; V i n c e n t v . Hughes

A i r West, I n c .       ( 9 t h C i r . 1 9 7 7 ) , 557 F.2d 759.

            I n the present case,                    thirty-one         separate plaintiffs

a l l b r o u g h t s u i t a g a i n s t t h e Montana Power Company c l a i m i n g

damages        o c c a s i o n e d by    a    single disaster.                The       thirty-one

plaintiffs           were     represented             by    ten     different           attorneys.

Clearly,        t h i s c a s e d o e s n o t a p p e a r a s complex a s t h a t s e e n

in   Vincent         (sixty separate                 actions      brought         in    state      and

federal        courts       i n Washington,            Utah       and    California)          or    in

Florida Everglades               (150 c l a i m s          in   both     federal        and    state

courts).          However,        i t c a n n o t be s a i d t h a t t h e t r i a l c o u r t ,

in   exercising           its managerial              power       over     this        proceeding,

c l e a r l y abused        its discretion a s a matter                      of     law i n pro-

v i d i n g f o r t h e appointment of a l e a d c o u n s e l .

           The p u r p o s e o f c o n s o l i d a t i o n and a p p o i n t m e n t o f l e a d

counsel         is   to     permit           trial    convenience           and        economy      in

a d m i n i s t r a t i o n by avoiding              unnecessary           costs or delay.
M a c A l i s t e r v . Guterma ( 2 n d C i r . 1 9 5 8 ) , 263 F.2d 65.                      Absent

a l e a d c o u n s e l t h e r e was no g u a r a n t e e p r e s e n t e d t o t h e c o u r t
that     all     the parties            t o t h i s proceeding            would        not    become

a c t i v e l y involved i n t h e l i t i g a t i o n .          C o n s e q u e n t l y , had t h e
D i s t r i c t Court f a i l e d t o formally o r d e r appointment of l e a d

counsel,        i t c o u l d h a v e been         faced with t h e p o s s i b i l i t y of
t e n d i f f e r e n t attorneys pursuing t e n d i f f e r e n t t h e o r i e s of
attack.        I t i s o b v i o u s t h a t s u c h an a r r a n g e m e n t would f o s t e r

undue d e l a y , c o s t and i n c o n v e n i e n c e .
            F u r t h e r m o r e , and m o s t i m p o r t a n t l y , i n l i g h t o f D N R C ' s

p a s t conduct,         t h i s Court s e r i o u s l y q u e s t i o n s t h e p r o p r i e t y
of    allowing         DNRC       to    avoid       the      application        of      the    lead
counsel order.              A f t e r t h e o r d e r was e n t e r e d a t no t i m e d i d
DNRC move         f o r a r e c o n s i d e r a t i o n , n o r d i d i t seek a n a p p e a l

o r w r i t t o have t h e o r d e r r e v i e w e d by t h i s C o u r t p r i o r               to

the     scheduled         trial        date.        Moreover,        during       the     initial
settlement negotiations,                    DNRC      failed      t o accept a proposal
made by t h e Montana Power Company t o s e g r e g a t e t h e c l a i m s o f
DNRC,     which would h a v e a l l o w e d t h e D e p a r t m e n t t o p r o c e e d on

i t s own and t o a v o i d f u r t h e r a p p l i c a t i o n o f t h e l e a d c o u n s e l
order.          Even      prior        to    the      lead     counsel        order,       during

e x t e n s i v e d i s c o v e r y e n g a g e d i n by t h e p a r t i e s , DNRC a l l o w e d
Williams t o a c t a s lead                 counsel,         h a v i n g him t a k e     a great
b u l k of t h e d e p o s i t i o n needed f o r t r i a l , w h i l e c h o o s i n g n o t
t o a t t e n d and m e r e l y p a y i n g i t s own p r o r a t a s h a r e o f               the

costs.       DNRC a l s o a l l o w e d W i l l i a m s t o do t h e m a j o r i t y o f t h e

work i n p r e p a r i n g i n t e r r o g a t o r i e s .

            DNRC c o n t e n d s it was bound by t h e l e a d c o u n s e l o r d e r

and u n a b l e t o a p p e a l u n t i l         t h e March      14,    1980,      o r d e r was
e n t e r e d allowing Williams compensation.                         A f i n a l determina-

t i o n o f t h e p a r t i e s ' r i g h t s , a r g u e s DNRC, o n l y o c c u r r e d when
t h e c o u r t o r d e r e d i t t o p a y c o m p e n s a t i o n and t h e m a t t e r was
deemed c o n c l u d e d .       DNRC b a s e s      t h i s a r g u m e n t on l a n g u a g e i n
t h e l e a d c o u n s e l o r d e r t h a t t h e c o u r t was t o r e t a i n c o n t i n -
uing j u r i s d i c t i o n over t h e matter t o review t h e a c t s of l e a d

c o u n s e l t o e n f o r c e and i n t e r p r e t t h e c o u r t a s e n t e r e d . "

            W disagree with DNRC1s p o s i t i o n
             e                                                        in failing t o see
why t h e l a n g u a g e n o t e d s h o u l d make t h e o r d e r a p p o i n t i n g l e a d
counsel       any     less      final      than      the     March       14,     1980,        order

s e t t i n g compensation.             The November            1, 1 9 7 9 , o r d e r     speci-

f i c a l l y appointed Williams lead counsel,                        s u b j e c t t o reason-
a b l e compensation.             The o n l y r e a s o n t h e c o u r t was r e t a i n i n g

a "continuing j u r i s d i c t i o n          over t h e matter"              was t o a s s u r e
t h a t Williams acted i n t h e b e s t i n t e r e s t of t h e p l a i n t i f f s
and t o s e t t h e a l r e a d y o r d e r e d r e a s o n a b l e c o m p e n s a t i o n .    If

DNRC d i s p u t e d t h i s a p p o i n t m e n t and t h e t e r m s t h e r e u n d e r ,     it

s h o u l d ha.ve made i t s f e e l i n g s known.
            I t i s a p p a r e n t t h a t DNRC was more t h a n w i l l i n g t o a l -

low W i l l i a m s t o a c t a s l e a d c o u n s e l ; t o a c c e p t h i s a p p o i n t -
ment     a s such;       and t o a c c e p t t h e b e n e f i t s o f           t h e $425,000
s e t t l e m e n t acquired under           the order.            DNRC     having alrea-dy

consented        t o an a p p l i c a t i o n o f      t h e lead counsel order,                 it

s h o u l d n o t be a l l o w e d t o a v o i d t h e same on a p p e a l t o t h i s
Court.
            A s t o t h e o r d e r determining compensation f o r Williams

a s l e a d c o u n s e l , DNRC f i r s t a r g u e s t h a t d u e t o t h e a b s e n c e

of    any    contractual           agreement        between        the     parties       or     any
s t a t u t o r y authority, attorney f e e s a r e not recoverable.                            See
Winder v. J o n a l Corp.            ( 1 9 7 6 ) , 169 Mont. 247, 545 P.2d                    1094.
Williams acknowledges t h i s g e n e r a l r u l e b u t contends t h a t i n
situations          where      attorney        fees      are     paid      from     a    "common
f u n d , " i t i s a c c e p t e d t h a t t h e s e f e e s c a n b e awarded e v e n i n
absenc e of s t a t u t e o r an e x p r e s s agreement.
            The "common fund1' c o n c e p t p r o v i d e s t h a t when a p a r t y
through a c t i v e l i t i g a t i o n c r e a t e s ,      reserves or          increases a

f u n d , o t h e r s s h a r i n g i n t h e fund must b e a r a p o r t i o n of t h e
litigation costs               including reasonable attorney fees.                             The

d o c t r i n e i s employed t o s p r e a d t h e c o s t o f l i t i g a t i o n among
all     beneficiaries           so     that     the    active       beneficiary          is    not

forced t o bear           t h e b u r d e n a l o n e and t h e " s t r a n g e r "         (i.e.,
p a s s i v e ) b e n e f i c i a r i e s do n o t r e c e i v e t h e i r b e n e f i t s a t no
c o s t t o themselves.              S e e V i n c e n t , s u p r a , 557 F.2d    a t 769.

           The d o c t r i n e i s w e l l r e c o g n i z e d and h a s b e e n q u o t e d
i n s e v e r a l Montana c a s e s .         S e e I n Re B a x t e r ' s E s t a t e ( 1 9 3 3 ) ,
94 Mont.        257,    22 P.2d        1 8 2 ; Hardware M u t u a l C a s u a l t y Co.         v.

Butler       (1944),          116     Mont.      73,    148       P.2d    563;     Tuttle       v.
Morrison-Knudsen              Co.,     Inc.    ( 1 9 7 8 ) , 1 7 7 Mont.      166,    580 P.2d
1379.        See       also    C i t y of      Klawock       v.    Gustafson         (9th Cir.
1 9 7 8 ) , 585 F.2d 428.             The b a s i s o f t h e d o c t r i n e b e i n g r o o t e d

i n the equitable concepts of quasi-contract,                              r e s t i t u t i o n and
r e c a p t u r e of    unjust enrichment,              t h e common f u n d t h e o r y o f
a w a r d i n g c o m p e n s a t i o n t o a l e a d c o u n s e l m u s t be a l l o w e d a s
a n e x p a n s i o n o f t h e g e n e r a l r u l e p r o v i d e d i n Winder.
           DNRC a r g u e s     t h a t e v e n i f t h e common f u n d c o n c e p t i s

recognized         in    Montana         it    should      not     be    applied       in     this
instance.         DNRC b a s e s t h i s c o n t e n t i o n on a n a c t i v e l i t i g a n t

versus passive l i t i g a n t distinction.
           It    is s t a t e d t h a t o n l y i n a c t i v e o r p a s s i v e b e n e f i -
c i a r i e s s h o u l d be    forced        t o bear     the     c o s t s of    litigation
u n d e r t h e common f u n d d o c t r i n e .        An i n a c t i v e member i n t h i s
r e g a r d h a s b e e n d e f i n e d a s a b e n e f i c i a r y who m e r e l y f a i l s t o
retain      counsel or          one who r e t a i n s l e g a l c o u n s e l b u t s a i d
counsel f a i l s ,      i n any d e g r e e ,      t o p a r t i c i p a t e i n any l a b o r s
leading t o the c r e a t i o n of              t h e fund.        S e e I n Re E s t a t e o f
K o r t h e ( 1 9 7 0 ) , 88 C a l . R p t r .       465, 9 Cal.App.3d                572;     see also

plumbing         fixture          anti-trust              cases:          Philadelphia           Housing

A u t h o r i t y v.     American R a d i a t o r           and S t a n d a r d S a n i t a r y C o r p .

(E.D.      Pa.      1971),          322 F.Supp.            834,      modified       s u b nom.,        Ace

H e a t i n g and Plumbing Co. v .                    C r a n e Co.       (3rd Cir.        1 9 7 1 ) , 453

F.2d     30; P h i l a d e l p h i a H o u s i n g A u t h o r i t y v . American R a d i a t o r

and     Standard          S a n i t a r y Corp.           (E.D.     Pa.     1 9 7 0 ) , 323 F.Supp.

364;     Note,         Reimbursement f o r A t t o r n e y s ' F e e s from B e n e f i c i -

a r i e s of R e p r e s e n t a t i v e L i t i g a t i o n ,      58 Minn.        L.    R.     a t 947-

948 ( 1 9 7 4 ) .

            N e v e r t h e l e s s , t h e c o u r t s have r e c o g n i z e d an e x c e p t i o n

t o t h i s general rule.                      See Vincent,           557 F.2d        a t 772.         The

exception provides t h a t s o long a s c o n t r i b u t i o n s of                              active

counsel        were       unequal          (    e     l    greater)        when     compared          with

t h o s e of     a l e s s a c t i v e counsel,                   compensation can s t i l l be

ordered        paid       under       the       common       fund      d o c t r i n e by      the    less

active party.                 S e e a l s o D o h e r t y v.        Bress     (D.C.       Cir.    1958),

262     F.2d      20,     cert.       denied          359 U.S.         934,    79 S . C t .       649,    3

L.Ed.2d        636.        The p u r p o s e o f          t h i s e x c e p t i o n is s i m i l a r     to

that     of      the     common       fund          doctrine        itself--to           avoid    unjust

enrichment.

            Here        the     record         indicates           that    DNRC       accrued        1,680

hours i n l e g a l services.                       This t o t a l included t h e s e r v i c e s

o f D N R C ' s l e g a l s t a f f , l e g a l i n t e r n s and n o n l e g a l p e r s o n n e l .

W i l l i a m s Law F i r m ' s t i m e r e c o r d s r e f l e c t e d 3 , 9 0 9 . 2 5        h o u r s on

the     case      to      the       time       of     settlement.              This       total       also

included          work         by     attorneys,             interns          and     secretaries.

Williams         also      testified            that      his      time    records        understated

t h e a c t u a l time s p e n t on t h e c a s e by 1 0 t o 20 p e r c e n t .                        The

disparity          in     efforts        between           lead     counsel       and      DNRC      being
evident, the District Court was proper in ordering compensa-
tion.
        DNRC's   final   arguments   concerning   its efforts   to
avoid paying lead counsel are twofold.        First, DNRC main-
tains that as a state agency, it should be treated dif-
ferently with respect to an obligation to compensate lead
counsel in that it can only retain counsel by an exclusive
procedure set forth in Executive Order No. 15-78.        Second,
DNRC contends that DR2-107, "Division of Fees Among Law-
yers," of the Canons of Professional Ethics, will be
violated    should this Court grant Williams the ordered
compensation.
        In rejecting DNRC's     contention   that   it should be
treated different from other beneficiaries to a common fund,
we need only note that payment for litigation costs by the
various beneficiaries is founded upon principles of equity.
In enforcing this doctrine, equity demands that all parties
receiving a benefit from the common fund be included in its
application.
        Furthermore, there is no basis for applying DR2-107
of the Canons of Professional Ethics as submitted by DNRC.
This rule    is concerned   solely with    the question of two
lawyers dividing fees.      It has no application to a situa-
tion where there is a court-appointed lead counsel to whom
others may be required to pay compensation, all under the
strict supervision and authority of the court.
        In regard to the final issue on appeal, in deter-
mining a reasonable fee in a given case, this Court has
established the following guidelines:
        ". . . The circumstances to be considered in
        determining compensation to be recovered are
           t h e amount and t h e c h a r a c t e r o f t h e s e r v i c e s
           rendered,             the labor,             t i m e and t r o u b l e
           i n v o l v e d , t h e c h a r a c t e r and i m p o r t a n c e o f t h e
           l i t i g a t i o n i n which s e r v i c e s a r e r e n d e r e d ,
           t h e amount o f money o r t h e v a l u e o f p r o p e r t y
           t o be a f f e c t e d , t h e p r o f e s s i o n a l s k i l l and
           e x p e r i e n c e c a l l e d f o r , t h e c h a r a c t e r and
           standing i n t h e i r profession of t h e attorneys
           .. .         The r e s u l t s e c u r e d by t h e s e r v i c e s o f
           t h e a t t o r n e y s may b e c o n s i d e r e d a s a n
           important element i n determining t h e i r
           value."             F i r s t S e c u r i t y Bank v . T h o l k e s
           ( 1 9 7 6 ) , 1 6 9 Mont. 4 2 2 , 429-430,                    547 P.2d
           1 3 2 8 , 1 3 3 2 ; a c c o r d , C a r k e e k v . Ayer ( 1 9 8 0 ) ,
                      Mont.             , 613 P.2d 1 0 1 3 , 1 0 1 5 , 37
           S t . R e p . 1 2 7 4 , 1275-1276.

           The f e e awarded i n t h i s i n s t a n c e was 11.1 p e r c e n t o f
DNRC's      r e c o v e r y under    the lead counsel order.                    T h i s amount
was g r a n t e d o n l y a f t e r e x t e n s i v e t e s t i m o n y r e l a t i n g t o t h e

above f a c t o r s .     I t i s t r u e t h a t t h i s award e x c e e d s t h e com-

p e n s a t i o n p a i d by t h e o t h e r p l a i n t i f f s r e p r e s e n t e d by l e a d
counsel;       but,     it s h o u l d be n o t e d      that these other parties
a g r e e d t o a s e t amount w i t h o u t h a v i n g t o i n v o k e t h e a i d o f
the t r i a l court.         W c a n f i n d no a b u s e o f d i s c r e t i o n .
                              e
           The     judgment         of       the   District          Court       appointing

Williams         as     lead    counsel        and     granting        compensation           is
af f irmed.




W concur:
 e



      Chief J u s t i c e                I




&.      J u s t i c e D a n i e l J. Shea d i s s e n t s and w i l l f i l e a w r i t t e n
d i s s e n t later.