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WILLEY v. RILEY12/20/1995
[541 NW2d Page 523]
In this action by plaintiff attorney against defendants, his former law firm and employer, two questions are presented. On appeal, defendants contend substantial evidence did not support submission by the district court to the jury of plaintiff's claim for intentional interference with a prospective contract. On cross-appeal, plaintiff attorney contends the court erred in granting defendants summary judgment on plaintiff's claim for conversion concerning the handling of a case settlement check.
Finding reversible error only in the district court's submission to the jury of plaintiff's claim for intentional interference with a prospective contract, we reverse on the appeal and affirm on the cross-appeal. We remand for appropriate judgment.
I. Background facts and proceedings. In June 1987, attorney Tom Riley, of the Tom Riley Law Firm, P.C., hired attorney Wythe Willey to work as a full-time associate for the law firm. Under the terms of Willey's employment agreement, Riley agreed to compensate Willey:
(1) A base salary of $60,000 per year, payable periodically or 60% of total billings, whichever is greater, and
(2) A bonus equal to one-third of the firm "profits" on contingent fee cases that [Willey] handle and [brought] into the office. "Profits" are generally the balance received by the [Tom Riley] office after deducting hourly charges and expenses.
(3) For cases in which [Willey] not participate, a bonus equal to 10% of the legal work that [brought] into the office.
Soon thereafter, Willey went to work for Riley and the law firm and received regular compensation based on the agreement.
On March 30, 1990, Willey left several letters at the Tom Riley Law Firm office for Riley stating that he was resigning from his associate position with the law firm effective immediately. Riley was out of town on the day Willey resigned, and Willey did not inform Riley in person or over the telephone of his resignation.
Upon returning to the office on April 1, Riley learned of Willey's resignation when he found the letters left by Willey. In one letter, Willey itemized sums totaling $235,664 that he contended the law firm still owed him at the time of his resignation.
On April 12, after his resignation from the law firm, Willey filed a petition at law in district court against Riley and the law firm seeking alleged unpaid wages, damages, and attorney fees pursuant to Iowa Code chapter 91A (1989). Riley and the law firm answered and counterclaimed, alleging Willey owed the firm damages based on fees Willey allegedly received directly from clients for services rendered to clients while employed by the law firm. One alleged instance involved Willey's representation of Reese Communications Companies, Inc., a public relations company that performs lobbying work with state legislatures and the United States Congress for Philip Morris U.S.A. and other companies. This allegation involved fees Willey allegedly received from Reese and failed to turn over to his employer law firm. [541 NW2d Page 524]
Defendants also alleged Willey wrongfully entered into a separate contract and accepted money for services from Philip Morris without payment being turned over to the law firm.
In March 1991, Willey amended his petition against Riley and the law firm to include allegations that (1) Riley intentionally interfered with prospective contractual relationships between Willey and two companies, Reese and Philip Morris, and that (2) Riley wrongfully converted a $650,000 settlement check in a wrongful death case in which Willey was the lead attorney. The conversi
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