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Robnett v. Kirklin Law Firm6/2/2005
82.022(c) (Vernon 2005); Order of the Supreme Court of Texas, June 18, 59 Tex. B. J. 844 (1996). Robnett was not licensed, therefore, and was precluded from practicing law when she signed both contracts. Both the Thomas contract and the Trutec contract authorize attorney's fee sharing, through provisions permitting involvement of other attorneys to prosecute the respective claims.
On February 20, 2001, the firm and Robnett negotiated a letter agreement to split, equally, the 40% contingency-based attorney's fees relating to the Thomas case. Under the agreement, the firm would thereafter advance the necessary expenses of the litigation to Robnett's former clients. On the same day, Robnett transferred the entire case to the firm, and the firm agreed to pay Robnett one-half of the 40% contingency fees.
Robnett and the firm executed a similar agreement, on January 22, 2001, to share attorney's fees in the Trutec case. Robnett's client in the Trutec case terminated the contract with Robnett on November 13, 2001, however, and, on the same day, the firm notified Robnett that it would not share fees with her, as contemplated by the January 22, 2001 agreement.
On January 14, 2002, Robnett's clients in the Thomas case terminated their contracts with both Robnett and the firm and hired new counsel. Despite the competing claims for attorney's fees asserted by Robnett and the firm, new counsel settled the case. Pursuant to the order of the trial court, defense counsel for Thomas deposited $31,084.26 into the trial-court registry pending resolution of the competing claims to that sum under the firm's intervention claim and Robnett's counterclaim. The firm moved for traditional summary judgment on the grounds that Robnett had fraudulently induced the firm to undertake duties imposed by her initial, contingency-fee contracts in both the Thomas and Trutec cases because, unknown to the firm, Robnett had been suspended from practicing law when those contracts were executed, which invalidated those contracts as a matter of law. The firm requested that Robnett be precluded from asserting any rights under the contracts. The firm supplied verified, summary judgment proof, in the form of documentary evidence of Robnett's suspensions, provided by the Supreme Court of Texas, which showed that Robnett was not reinstated until after each of the contracts had been executed. The firm also provided verified proof of the following: Robnett's former clients in the Trutec case had terminated their contract with her on November 13, 2001, the firm disclaimed any obligation to Robnett for the Trutec case on the same date, and Robnett's former clients in the Thomas case terminated their contract with her on January 14, 2002.
Robnett timely responded to the firm's motion for summary judgment by acknowledging that she had been "administratively suspended" on several occasions, but claimed that she was consistently reinstated retroactively, pursuant to section 7 of the State Bar Rules. See State Bar R. art. III, ยง 7(A), reprinted in Tex. Gov't Code Ann., tit. 2, subtit. G app. A (Vernon 2005) (providing for retroactive restoration of former status on removal of default for "nonpayment of dues or assessments"). Robnett also argued, in the alternative, that even disbarred attorneys may recover referral fees under Texas law.
The firm's motion for summary judgment was set to be heard on October 25, 2002. On October 26, 2002, the plaintiffs in the Thomas case signed a settlement agreement for their wrongful death and personal injury claims, in which they also covenanted not to sue the firm or its principals concerning their representation. Robnett and the firm signed the settlement agreement. In Janua
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