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We the People Paralegal Services8/25/2000
Application for rehearing may be filed within the delay allowed by Art. 2166, LSA-CCP.
NORRIS, C.J., concurs in result.
CARAWAY, J., dissents with reasons.
We granted the application for supervisory writ filed by the defendants, Amy Watley and Bill Watley, individually and doing business as Watley and Watley (the "Watleys"), to review the trial court's denial of an exception of no cause of action asserted in response to an amended petition filed by the plaintiffs, "We The People" Paralegal Services, L.L.C., and Delores Renee Liesmann, individually and as corporate president (hereinafter referred to jointly as "WTP"). We find that it was error for the trial court to deny the exception, and we remand the matter to allow WTP to amend its petition, if possible, to state a cause of action.
FACTS
WTP's original "Petition For Breach Of Contract For Personal Services Rendered And Quantum Meruit" alleged the existence of an oral agreement whereby WTP would provide paralegal services for the Watleys, who are attorneys, in exchange for compensation pursuant to a fee splitting arrangement. Under the alleged fee splitting arrangement, WTP was to be paid either 40 or 60 percent of attorney fees received. Prior to receipt of the attorney fees, WTP would bill the Watleys $75 per hour for work done on the cases. WTP alleged that the Watleys breached the contract by locking them out of the office the parties shared and by refusing to account for or pay the fees earned for services rendered by WTP on a number of cases. WTP prayed for judicial recognition of the oral contract, an order directing payment in accordance with the contract terms, an award of damages for breach of contract, and an award of attorney fees and costs. The petition included no pleadings relating to quantum meruit.
The Watleys responded to the original petition by filing an exception of no cause of action. They asserted that the alleged contract was unenforceable because any work performed by WTP would involve the unauthorized practice of law in violation of La. R.S. 37:212 and 213 and compensation under the contract's fee splitting arrangement would violate Rule 5.4 of the Rules of Professional Conduct of the Louisiana State Bar Association. During arguments on the exception, WTP's counsel conceded the point by stating:
We do concede that an agreement to assist someone to engage in the unauthorized practice of law is void ... because it is against public policy.
And we would be hard pressed to even suggest to the Court that at somepoint it enforced (sic) that contract, because we know that Court can't do that.
The trial court sustained the exception but granted WTP 15 days to amend its petition to state a cause of action.
In the "First Amended Petition For Breach Of Contract For Personal Services Rendered And Quantum Meruit," WTP restated the same allegations as in the original petition and included the following two additional paragraphs:
XII a.
Between July 15, 1998 and March 12, 1999, plaintiff "WTP" and its employees devoted approximately 3,120 man hours of service to the clients of defendants Watley & Watley, under their direct control and supervision, of which approximately 2,184 man-hours were spent in the performance of services directly related to personal injury clients of defendants. To date, "WTP" has received a total of $4,110.59, representing 40% of attorney fees as previously agreed by the parties ($2,997.21 for the case of Deanna Strasky and two minor children), or 54.81 hours at $75.00 per hour as agreed, leaving a total of 2,129.19 hours uncompensated. Defendants received a s
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