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Ausler v. Ramsey3/7/1994
Valaria Ausler appeals the trial court's order denying reconsideration of an earlier order granting Len Blumenthal an attorney fee based on quantum meruit. Ausler hired Blumenthal to pursue a personal injury suit
against Ramsey. Blumenthal withdrew from the representation before going to trial or obtaining a settlement offer satisfactory to Ausler. Ausler hired new counsel to pursue the action. The new attorney achieved a settlement satisfactory to Ausler. The trial court awarded Blumenthal a fee, based on quantum meruit, for work he performed on the suit before withdrawing. Finding that the trial court erred in awarding Blumenthal a fee, since Blumenthal did not establish that he had "good cause" to withdraw within the meaning of the applicable rule, we reverse and remand.
Facts
On September 27, 1984, Ausler and Ramsey were involved in a motor vehicle collision. Ausler retained Len Blumenthal on October 1, 1984, to represent her in a personal injury suit against Ramsey. Ausler and Blumenthal entered into this simple contingent fee arrangement:
The undersigned client, , agrees that said attorney shall receive one-third (1/3) of any monies recovered on client's behalf in connection with this accident. No fee shall be charged if there is no recovery.
Clerk's Papers, at 72. The contract also required Ausler to pay costs advanced by Blumenthal.
On June 25, 1987, Blumenthal sought $25,000 from Ramsey's insurer in settlement of the suit. Sometime around July 24, 1987, the insurer tendered a final counteroffer of $11,000. Despite Blumenthal's recommendation, Ausler did not accept this offer, and Blumenthal filed suit on September 8, 1987. Ausler was deposed by Ramsey and answered Ramsey's interrogatories in October of 1987.
On January 29, 1988, Blumenthal asked Ausler, by letter, to reply in writing as to whether she wanted the case to be submitted to arbitration. She did not do so. Three months later, in April of 1988, Blumenthal discussed arbitration with Ausler, and advised her that he felt arbitration would be unsuccessful at achieving what Ausler thought was the value of the suit.
Blumenthal withdrew from the case on May 6, 1988. Blumenthal asserts that he withdrew because he believed that Ausler was not heeding his best legal advice, was acting in contradiction to her best interests and because she failed to respond in writing to his letter of January 29, 1988. On May 12, 1988, Blumenthal filed an attorney's lien, pursuant to RCW 60.40.010, on any judgment received by Ausler.
Ausler then hired A. Graham Greenlee to represent her in the personal injury suit. He directed Ausler to undergo additional medical examinations. He determined the coverage limits of Ramsey's insurance policy. He also deposed Ramsey. The case was set for arbitration. By his additional work, Greenlee was able to increase the insurance company's settlement offer to $16,000 as of December 24, 1991, and to $17,500 by December 27, 1991. As the arbitration date approached, the insurer increased its offer to $20,000. Just before arbitration the insurer offered to pay the full policy limits, $25,000. Ausler accepted this offer.
Ausler then moved to determine Blumenthal's lien, arguing that his recompense should be limited to costs advanced. Blumenthal asked for a lien of $4,037.72. This represented $517.72 in costs and $3,520 in fees (35.2 hours x $100/hour).
The trial judge held a hearing on the motion and entered an order establishing Blumenthal's lien at the full amount sought, $4,037.72. The trial judge ordered that this money be paid directly to Blumenthal by the
Page 1 2 3 4 Washington Personal Injury Attorneys
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