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Rhodes v. Martinez9/6/1996
vent payment by the judgment debtor to the creditor in fraud of his right to the same, and also to prevent or set aside assignments or settlements made in fraud of his right.
Id. at 140, 159 P. at 41; accord (quoting Prichard).
{6} Northern Pueblos is also instructive. J. H. Burttram filed an attorney's lien for $19,856.87 against Northern Pueblos Enterprises (Northern Pueblos), seeking to attach funds belonging to Northern Pueblos in the registry of the court (totaling $16,427.01) in partial satisfaction of his lien. . At the same time a judgment creditor of Northern Pueblos, Pueblo Electric and Refrigeration (Pueblo Electric), claimed priority on the same funds to satisfy the judgment it had received against Northern Pueblos of $5,984.93. Id. After an evidentiary hearing, the trial court found that Burttram was "reasonably entitled to an attorney's fee in the sum of $10,000.00." Id. It ordered the clerk to disburse $5,984.93 plus costs of $67.36 to Pueblo Electric and $10,000.00 to Burttram. Id. The Supreme Court affirmed the judgment. . "Because a court exercises its equitable powers in enforcing an attorney's charging lien, it may inquire into the reasonableness of the asserted fee for purposes of enforcing the lien." Id. The Court recognized that a court "may not alter or amend a contract." Id. It explained that the court had not altered "Burttram's contract with Northern Pueblos" by enforcing the lien to the extent of $10,000.00 "for purposes of setting priorities of liens." Id. "The court simply gave Burttram equitable relief for a reasonable fee, leaving Burttram free to go against Northern Pueblos for the remaining fees due under the contract." Id.
{7} While some states have enacted statutory charging liens, New Mexico has not. ), cert. denied, 112 N.M. 388, 815 P.2d 1178 (1991). New Mexico's charging lien "has its origin in the common law, and is governed by equitable principles." (citing Prichard, 22 N.M. at 139, 159 P. at 40).
III. The Existence of a Valid Lien: The Contract Between Rhodes and Camacho
{8} Before an attorney's charging lien will be effective, "the terms of a valid attorney-client contract must provide that an attorney's charging lien can attach to the client's award." . Here, the parties dispute whether the contract signed by Rhodes and Camacho provides for Camacho's lien to attach to the proceeds of the personal injury settlement.
{9} "The function of the courts is to interpret and enforce a contract as made by the parties." (citation omitted). The court may not "do for the parties what they failed to do for themselves," , but must enforce the contract as written. "Absent any ambiguity, the court may not alter or fabricate a new agreement for the parties." (citations omitted). The parties do not claim that the agreement between Rhodes and Camacho is ambiguous, and we do not find it so.
{10} The "Civil Retainer Agreement" (the contract) between Rhodes and Camacho provides in pertinent part:
Date of accident 12/21/89 Place of Accident Central & 98th
1. I retain you to prosecute, or adjust, all claims I may have arising out of the above accident.
4. You are to handle this claim on a contingency fee basis, which means that if I receive no money, I will owe you no legal fee.
5. A contingency fee also means that if I do receive money, one-third (1/3) of the gross amount received, plus tax, is your full payment of your legal fee and that of any lawyer you associate or employ. If the case goes to trial, the contingency fee basis foe your legal fees will be forth percent (40%) of the gross amount received, plus tax.
7. In
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