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Church v. Hofer11/10/1992
The opinion of the court was delivered by: GARRETT, Judge.
Hofer, Inc. (Hofer) was sued in several negligence and wrongful death actions filed in federal court. The federal actions were based on alleged negligence and wrongful death and were brought as a result of an accident involving a truck owned by Hofer and several other vehicles. Early American Insurance Company (Insurance Company) was the liability insurer for Hofer. Donald Church (Appellant or Church) was retained by Insurance Company to defend its insured, Hofer, in the federal legal actions. Church agreed to represent Hofer. Ultimately, he settled the federal actions favorably to Hofer before trial.
Upon settlement of the federal cases, Insurance Company went into receivership. After Insurance Company went into receivership, Church sent his final billing for legal services to Hofer along with a letter asking that consideration be given to the bill. The amount of the bill was $22,022.16. This amount was later reduced to $17,522.16 after Church foreclosed an attorney lien for $4,500.00 on a pending settlement in one of the federal actions.
Hofer informed Church it would not pay the $17,522.16 in legal fees. Church brought an action against Hofer for that amount. Church's petition stated he was a licensed attorney; he had performed legal services for Hofer; the worth of the services was $17,522.16; and, this sum was due and owing from Hofer.
Hofer filed an answer to the petition. In its answer, Hofer stated that Church had not provided legal services for it, but had been retained for legal services by its insurer, Insurance Company. Therefore, Hofer claimed it did not owe Church for those services. Both parties proceeded with discovery.
Hofer filed a Motion for Summary Judgment. In its Motion for Summary Judgment, Hofer contended that Church was hired by Insurance Company. This hiring was done pursuant to Insurance Company's obligation to defend Hofer under a policy issued by Insurance Company to Hofer. Hofer further stated during the federal actions, it hired its own attorney for advice, and Church knew this. Hofer also claimed that $2,242.50 of the $17,522.16 requested by Church was for litigation to which Hofer was not a party. Hofer asserted Church never expected to be paid by Hofer, but expected to be paid by Insurance Company, so any theory of recovery in quantum meruit failed. Hofer asserted simply because it was benefitted by the legal services, that did not entitle Church to recover on an unjust enrichment, quasi-contract or restitution theory. Further, that Church's express contract with Insurance Company prevented him from recovering from Hofer.
Church responded to Hofer's Motion for Summary Judgment. In his response, Church asserted: (1) he had rendered legal services for Hofer; (2) Hofer had relied on these services; (3) he had obtained favorable settlements for Hofer; (4) the Insurance Company "went broke" before Church was paid; and, (5) Hofer owed Church $17,522.16 in legal fees under a quantum meruit theory. Church denied having an express contract with Insurance Company.
The court sustained Hofer's motion and entered judgment accordingly. Church asserts on appeal that the trial court erred in granting summary judgment for Hofer, and contends he is entitled to recover on a theory of quantum meruit. Church relies on the American Bar Association Informal Opinion 1476 C 1981 which states:
When a liability insurer retains a lawyer to defend an insured, the insured is the lawyer's client.
This opinion relates to the allegiance a lawyer owes a client when hired
Page 1 2 Oklahoma Personal Injury Attorneys
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