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Thompson v. Hiter3/14/2005
This matter arises out of a claim for attorney fees resulting from the settlement of a wrongful death case. On June 9, 2003, Robert P. Reske, filed a verified petition to adjudicate an attorney lien claimed by respondent, Ambrose & Cushing, P.C. (the Firm). Reske claimed the Firm was entitled only to quantum meruit fees for the work Reske performed on the case while an employee of the Firm. The Firm claimed it was entitled to two-thirds of the entire attorney fee based on an oral joint venture agreement between the Firm and Reske. After an evidentiary hearing, the trial court found that the evidence was insufficient to support the Firm's contention that a joint venture existed between the Firm and Reske and awarded the Firm quantum meruit fees in the amount of $6,990. The Firm now appeals. The issue before the court on appeal is whether the trial court was correct in holding that the discharge of the Firm prior to settlement relieved Reske of his fee sharing obligation under his agreement with the Firm. For the reasons that follow, we affirm.
STATEMENT OF FACTS
In a verified petition filed on June 9, 2003, Reske alleged the following. From September 1997 until December 2001, Reske was employed by the Firm under an oral employment contract. For all new business Reske brought to the Firm, Reske received one-third of the attorney fees generated on those files and the Firm received two-thirds. The Firm provided Reske with malpractice insurance, secretarial and clerking services, and covered Reske's files if needed. In 2001, Reske was paid a base salary of $66,000 to work on the Firm's cases.
Reske further alleged that, on June 26, 2001, Christine Thompson, as administrator of the estate of Sean Thompson (plaintiff), entered into a contingent fee contract with the Firm and Reske to represent her in her claim against Richard Hiter for the wrongful death and survival action of her minor son, Sean Thompson (the Thompson wrongful death case). Reske was the only attorney who did any work on the Thompson wrongful death case from June 26, 2001, through December 6, 2001, and Reske made all legal decisions regarding the handling of the case. By letter dated January 13, 2002, plaintiff discharged the Firm. Reske continued his representation of plaintiff. By letter dated January 22, 2002, the Firm demanded payment from Reske of $4,204.50 for its costs before turning over plaintiff's file. On January 22, 2002, Reske paid the Firm $4,204.50 for the release of plaintiff's file. On February 6, 2002, the trial court entered an order granting the Firm leave to withdraw its appearance and granting Reske leave to substitute as counsel.
Reske further alleged that, by letter dated May 30, 2003, he asked the Firm to produce the costs paid on the Thompson file and to calculate the hours spent on the file which would entitle the Firm to compensation on a quantum meruit basis. By letter dated June 2, 2003, the Firm demanded $155,556 in fees, which represents two-thirds of the entire fee earned on the Thompson wrongful death case.
On June 27, 2003, after filing his verified petition, Reske submitted a distribution and settlement order for the Thompson wrongful death case to the trial court. The trial court approved the settlement in the amount of $700,000 and found that Reske was entitled to $233,333.33 in fees. Nevertheless, the trial court ordered that those fees be held in trust by Reske pending the trial court's resolution of Reske's petition to adjudicate the Firm's attorney lien.
On July 7, 2003, the Firm filed a response to Reske's petition. The Firm requested that the trial court deny Reske's request that the Firm receive only a quantum meruit award
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