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Goldman

5/21/1998

REPORTED


Appellees/cross-appellants Cooper, Beckman & Tuerk, L.L.P. (CBT) and Levy, Phillips & Konigsberg, R.L.L.P. (LPK) filed a six-count complaint against appellant/cross-appellee Goldman, Skeen & Wadler, P.A. (GSW), as well as Harry Goldman, Jr., pertaining to a series of fee-sharing agreements among the parties. The jury returned a special verdict finding three of four such contracts to remain in effect and concluding that each of the three law firms was liable for breach. The jury awarded CBT and LPK one dollar each and similarly awarded one dollar to GSW. The court entered one judgment on the verdict for the breach of contract claims and a separate judgment declaring the three contracts to remain in effect and awarding a total of $5,691,599.60 to CBT and LPK, a sum "representing [their] contractual share of the total fees." GSW filed a motion to alter or amend the declaratory judgment, a motion for recusal, and a conditional motion for a new trial on the continuing enforceability of the three contracts. CBT and LPK then filed a motion for summary judgment, which also requested judgment notwithstanding the verdict. The court amended the declaratory judgment to indicate additionally that CBT and LPK owed $90,367.69 to GSW, even though no party had requested such an amendment. All other motions were denied. This appeal ensued.


On appeal, GSW presents the following questions, which we have recast:


1. Whether the circuit court improperly excluded expert testimony and other evidence on the Maryland Lawyers' Rules of Professional Conduct and predecessor ethical rules.


2. Whether an order compelling a law firm to remit to other lawyers seventy-five percent of attorney's fees obtained in on-going cases improperly compels the firm to breach its ethical obligations to clients.


3. Whether the circuit court erred by permitting appellees to introduce evidence of a prior contract dispute between GSW and another attorney.


4. Whether the circuit court erred by refusing to instruct the jury on principles of contract termination.


5. Whether the circuit court erred by refusing to instruct the jury on the Statute of Limitations


6. Whether the circuit court improperly excluded file memoranda of disputed conversations.


7. Whether the trial court's declaratory judgment awarding money damages violated GSW's constitutional right to trial by jury or constituted an improper attempt at additur or reformation of a jury verdict.


8. Whether the trial judge erred by failing to recuse himself from post-trial proceedings.


CBT and LPK cross-appeal on one initial issue: "Whether it was error to award GSW a remedy when GSW explicitly disclaimed any interest therein." Should this court find error in the declaratory judgment's monetary awards against GSW, then cross-appellants present two further questions:


1. Did the circuit court err by dismissing cross-appellants' claims for conversion and punitive damages?


2. Did the circuit court err by denying cross-appellants' motion for summary judgment and entering the jury's award of nominal damages?


For reasons set forth below, we will affirm the breach of contract judgment, but we must reverse the declaratory judgment's monetary awards against GSW and vacate and remand the declaratory judgment in all other respects.


FACTS


In the mid-1970's, Mr. Goldman represented several clients who belonged to Local 24 of the International Union of Marine and Shipbuilding Workers of America (IUMSWA) and were employed at the Key Highway Shipyard of Bethlehem Steel in Baltimore City.

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