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Flint v. Donion11/18/2002
This case involves a dispute over legal fees between a client and an attorney who represented her in a personal injury lawsuit. After the client discharged the attorney, retained a new attorney, and settled her claim, her former attorney claimed he was entitled to a percentage of the settlement as required by the contingency fee agreement. In 1988, the client sued the former lawyer for legal negligence and breach of fiduciary duty and sought forfeiture of legal fees. The client and lawyer agreed to turn over one-third of the settlement amount to a third party law firm to hold in escrow until the matter was resolved. In May, 1990 the client's lawsuit against the attorney was dismissed without prejudice. Ten years later, in 2000, the client filed this lawsuit, asking the court to declare that any claim the attorney had to the funds set aside in 1988 was barred by the statute of limitations and disburse the funds to her. The court granted the client's motion for summary judgment, entered judgment in her favor and awarded her prejudgment interest and attorney fees. We affirm the order of summary judgment and the judgment and order in favor of the client for the principal judgment amount and other costs. We reverse the award of prejudgment interest and attorney fees based on RCW 4.84.250-300.
In 1982 Nancy Epperly (now Flint) was injured in an automobile accident. She was a passenger in the car driven by her former spouse, Michael Epperly. Nancy and Michael Epperly hired attorney Gary Donion to represent them. Although Flint and Donion orally agreed that Donion would receive a third of the amount of Flint's recovery, they did not enter into a written fee agreement.
In 1984 Donion filed a lawsuit for Flint's injuries against the occupants of the other car. In January 1987 Donion negotiated a settlement for Flint for $10,000. Flint consulted another attorney, Richard Kilpatrick, because she had concerns about the proposed settlement. Flint retained Kilpatrick to represent her and authorized him to discharge Donion. In 1989, Kilpatrick settled Flint's claim for $10,000, the same amount Donion had negotiated. Donion maintained his entitlement to one-third of the settlement, or $3,333.34. The insurer paid this portion of Flint's settlement both to Flint and Donion.
In April 1988, Flint filed suit in King County Superior Court against Donion and his law partners. Her complaint alleged legal negligence, breach of fiduciary duty, breach of legal ethics, and violation of the Consumer Protection Act. She claimed Donion had not obtained informed consent for joint representation and there was a conflict of interest between her interests and Michael Epperly's. Flint also alleged that Donion negligently handled her insurance claim. Flint sought general and special damages, treble damages up to $10,000, and "forfeiture of any fee otherwise earned". Donion answered and filed a counterclaim alleging Flint's complaint was frivolous and in violation of CR 11. At the same time Flint filed her complaint, she filed a motion for a court order to obtain Donion's case file.
In June 1988, the parties agreed that the disputed funds of $3,333.34 would be held in escrow by a third party law firm and not disbursed except on their written instructions or by court order. Although the parties intended the funds to be in an interest-bearing account, the funds were placed in a non-interest bearing account.
On September 13, 1988, the trial court ordered Donion to return all paperwork received during the course of his representation of Flint. According to the order, the "{t}he lien for attorney fees is secured by cash and no further lien exists on Plaintiff's papers."
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