On June 23, 1857, Abraham Lincoln sued the Illinois Central Railroad. The Railroad had hired him on many occasions to defend their interests, but on this occasion they balked at the unusually high fee Lincoln charged – $5000. Lincoln had served the railroad well over many years, often taking limited fees, for example he had drawn only $150 for a year’s worth of work encompassing “at least fifteen cases (I believe one or two more) and I have concluded to lump them off at ten dollars a case.” This time, the McLean County Tax Case, he wanted to get paid the value of the work.
After jockeying around to ensure Lincoln was free to represent them, the railroad had paid him a retainer to get him started. The case was complicated, involved several trials, including the Illinois Supreme Court. Lincoln won the case and submitted his bill for $5,000, an amount more than the annual salary of the Illinois governor. After a week he wrote to the railroad’s counsel requesting status, who indicated it had been sent to the company president and attorney, who refused to pay it. Lincoln sued. Knowing he needed to justify such a large amount, Lincoln included an affidavit providing for the depositions of other prominent lawyers, all of them his friends—Norman Judd, Isaac Arnold, Grant Goodrich, Archibald Williams, and his former law partner, Stephen T. Logan—each of whom vouched for the appropriateness of the fee.
In his own brief, Lincoln wrote:
“Are, or not the amount of labor, the doubtfulness and difficulty of the question, the degree of success in the result; and the amount of pecuniary interest involved, not merely in the particular case, but covered by the principle decided, and thereby secured to the client, all proper elements, by the custom of the profession to consider in determining what is a reasonable fee in a given case.
That $5000 is not an unreasonable fee in this case.”
When the case came up for trial, no representative for the railroad was present and the judge awarded Lincoln the five thousand dollars. John Douglass, the Illinois Central railroad’s attorney, did show up the next day and begged for a new trial, which Lincoln did not resist. Setting aside the earlier verdict, they retried the case and the jury again decided for Lincoln. This time they awarded him $4,800 because Lincoln had received $200 as a retainer (in fact, the records show he had received $250). As with all fees received by the firm, Lincoln shared this fee equally with William Herndon.
[Adapted from my forthcoming book, due out in February 2022]
David J. Kent is the author of Lincoln: The Man Who Saved America. His newest Lincoln book is scheduled for release in February 2022. His previous books include Tesla: The Wizard of Electricity and Edison: The Inventor of the Modern World and two specialty e-books: Nikola Tesla: Renewable Energy Ahead of Its Time and Abraham Lincoln and Nikola Tesla: Connected by Fate.
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