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Cantrelle v. Whipple11/1/2000
Norma Cantrelle and Charmaine Cantrelle Chaisson appeal a judgment dismissing, on a motion for summary judgment, their suit against their attorney Keith Whipple to recover excess attorney fees they allege Whipple charged them.
We reverse and remand.
FACTS
In 1983, Carrol Cantrelle approached attorney Keith Whipple about representing him and his family members in a lawsuit seeking damages for injuries suffered as the result of a March 1983 rear-end auto collision. Whipple agreed to take the case.
On March 21, 1984, Whipple, on behalf of Norma Cantrelle ("Norma"), Charmaine Cantrelle Chaisson ("Charmaine") and other members of the Cantrelle family, filed suit ("first suit") against several defendants including Allstate, the Cantrelles' UM carrier. Whipple, who had previously represented Carrol Cantrelle in a criminal matter, also represented the Cantrelles in various other legal matters while this suit was pending. Whipple contends a written contingency fee contract was executed which set out his fee at 40%, and 50% if the matter was appealed. Mr. Cantrelle counters that there was never a written contract, and that he agreed to a fee of 20% if the case was settled out of court and 25% if the case went to court.
After every defendant except Allstate settled, the case proceeded to trial. Following trial in July 1985, judgment was rendered against Allstate and in favor of Norma for $255,000 and in favor of Charmaine for $38,992.71. Allstate paid $255,006.53 to Norma, of which Whipple retained 40%, or $102,002.61, as his attorney fee. Allstate paid $38,992.71 to Charmaine. Whipple also retained 40% of this amount, or $15,597.08, as his attorney fee.
Whipple had Norma and Charmaine sign separate disbursement sheets in September 1985 which set out the costs and attorney fees, but not the specific percentage withheld. These sheets, which were signed by two witnesses, stated:
I hereby acknowledge that I have read this disbursement sheet and I hereby authorize my attorneys to disburse in accordance therewith. I further acknowledge that I am specifically authorizing my attorneys to pay the aforesaid fees and expenses and do release them from any further accounting to me. I hereby acknowledge that I will pay any outstanding balance due on any medical account or to any physician or medical facility which may have rendered treatment to me for injuries received in this accident. I hereby acknowledge receipt of the funds above listed as a fair and just settlement of my claims herein.
On July 11, 1985, Whipple, on behalf of the same plaintiffs in the first suit, filed suit ("second suit") against Allstate seeking penalties and attorney fees for Allstate's arbitrary and capricious failure to pay their UM claims. After two appeals of pre-trial rulings were resolved in favor of the plaintiffs, Allstate settled the suit in June 1990, agreeing to pay $150,000 to Norma and $10,000 to Charmaine. Whipple withheld 50% of these amounts as his attorney fee. Norma and Charmaine again signed separate disbursement sheets which set forth the attorney fees withheld. Except for the deletion of language relating to payment of medical bills, the acknowledgment/authorization paragraph in each of these disbursement sheets was identical to the acknowledgment/authorization paragraph quoted above.
In July 1990, Walter Antin wrote to Whipple that he had been hired by Norma to review the attorney fees charged by Whipple in the two suits. Antin requested that Whipple provide a detailed accounting and substantiation of the fees as well as a copy of any contract for legal services performed for Norma.
In April 1991, Norma and
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