3000 KENNEDY BOULEVARD, LLC v. PARKER IBRAHIM & BERG, LLP (L-0609-19, HUDSON COUNTY AND STATEWIDE)

CourtNew Jersey Superior Court Appellate Division
DecidedJuly 13, 2022
DocketA-1411-20
StatusUnpublished

This text of 3000 KENNEDY BOULEVARD, LLC v. PARKER IBRAHIM & BERG, LLP (L-0609-19, HUDSON COUNTY AND STATEWIDE) (3000 KENNEDY BOULEVARD, LLC v. PARKER IBRAHIM & BERG, LLP (L-0609-19, HUDSON COUNTY AND STATEWIDE)) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
3000 KENNEDY BOULEVARD, LLC v. PARKER IBRAHIM & BERG, LLP (L-0609-19, HUDSON COUNTY AND STATEWIDE), (N.J. Ct. App. 2022).

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-1411-20

3000 KENNEDY BOULEVARD, LLC,

Plaintiff-Appellant,

v.

PARKER IBRAHIM & BERG, LLP,

Defendant-Respondent. ____________________________

Argued December 15, 2021 – Decided July 13, 2022

Before Judges Hoffman, Geiger, and Susswein.

On appeal from the Superior Court of New Jersey, Law Division, Hudson County, Docket No. L-0609-19.

Vincent J. La Paglia argued the cause for appellant.

Daniel A. Schleifstein argued the cause for respondent (Parker Ibrahim & Berg, LLP, attorneys; Scott W. Parker, James P. Berg, and Daniel A. Schleifstein, on the brief).

PER CURIAM Plaintiff 3000 Kennedy Boulevard, LLC appeals from four Law Division

orders that: 1) granted summary judgment in favor of the law firm that

represented plaintiff in a prior lawsuit, dismissing plaintiff's claims against the

law firm with prejudice and granting the law firm's counterclaims against

plaintiff; 2) denied plaintiff's motion for reconsideration; 3) entered judgment

against plaintiff in the amount of $496,463.99; and 4) denied plaintiff's cross-

motion to stay enforcement of the judgment. For the reasons that follow, w e

reverse the Law Division orders, vacate the judgment entered in favor of

defendant, and remand for further proceedings.

I.

3000 Kennedy Boulevard, LLC v. Micro Tech Litigation

Plaintiff, a commercial landlord, owns the building at 3000 Kennedy

Boulevard in Jersey City, where it leases office space to different commercial

tenants. Plaintiff's principal is David Tasci.

In 2015, plaintiff sued a former tenant, Micro Tech Training Center

(Micro Tech) for failure to pay rent, with Micro Tech claiming constructive

eviction. See 3000 Kennedy Blvd. v. Micro Tech Training Center, No. L-4212-

15 (Law Div. June 26, 2018). Attorney Boris Peyzner (Peyzner) of the law firm

Bressler, Amery & Ross, P.C. (the Bressler firm) represented plaintiff in that

A-1411-20 2 action. From 2015 through 2017, plaintiff paid the Bressler firm $247,906.85

for its services.

In late 2017, Peyzner informed plaintiff that he was leaving the Bressler

firm to join the firm of defendant Parker Ibrahim & Berg, LLP (defendant or the

Parker firm) and was bringing plaintiff's case with him. On January 3, 2018, 1

Tasci signed a written fee agreement confirming plaintiff's hiring of the Parker

firm.

The fee agreement explained the basis for fees and expenses and listed the

hourly billing rates for Peyzner ($365.00), associates ($340.00-$380.00),

partners ($440.00-$480.00), and paralegals ($130.00). The agreement

specifically stated, "As you know, Peyzner will handle most of the work [on]

this matter . . . ." 2

Regarding fees, expenses, and the retainer amount, the fee agreement

stated:

1 The copy of the agreement contained in the record lists the date as January __, 2018, but in its reply to defendant's request for admissions, plaintiff admitted to signing the agreement dated January 3, 2018. 2 Notwithstanding this representation, defendant would ultimately send plaintiff six invoices that billed plaintiff $193,011.50 for Peyzer's work, $129,744.00 for other associates' work, $182,599.00 for other partners' work, $19,851.00 for paralegals' work, and $25,398.44 for additional expenses, for a total of $550,605.44. A-1411-20 3 We have agreed and we will bill you for all legal fees, disbursements and out-of-pocket expenses made or incurred on your behalf. Invoices will be sent to your attention at the address set forth above. Expenses typically include such items as document reproduction, printing, court reporting charges, travel expenses, mailing charges, messenger services, and filing fees. Please note, if we anticipate that substantial expenses will be incurred on your behalf, we will require that you pay the vendor directly and/or we may require a deposit from you in order to cover such expenses. By countersigning this agreement, you agree to be responsible for your legal fees and other expenses incurred on your behalf in this matter.

It has been agreed that we will use our best professional efforts to obtain a resolution satisfactory to you. In return, you have agreed to pay an initial retainer in the amount of $20,000.00. Should the retainer drop below $10,000.00, you agree to replenish it to $10,000.00 within two weeks of notice from us. Further, you have agreed to increase the retainer to $50,000.00 as soon as the case is within [sixty] days of trial. The retainer will be refunded, to the extent it has not been utilized in fees and costs related to your representation, upon resolution of this matter.

The fee agreement further provided:

Either at the commencement or during the course of our representation, we may express opinions or beliefs concerning the matter and the results that might be anticipated. Any such statement made by any partner or employee of the Firm is intended to be an expression of opinion only, based on information available to us at the time, and should not be construed as a promise or guarantee.

A-1411-20 4 Tasci's signature appears at the bottom of the fee agreement. According to

plaintiff, it paid the $20,000 retainer fee and an additional $20,000 upon signing

the fee agreement.

After receiving billing invoices for defendant's work in January and

February 2018, Tasci complained to Peyzner that the bill exceeded Peyzner's

prior estimates, that plaintiff could not pay that rate, and instructed that Peyzner

alone work on the file. In response, on March 23, 2018, defendant moved,

before the trial judge in the underlying matter against Micro Tech, to be relieved

as counsel for plaintiff. Defendant cited Rule of Professional Conduct (RPC)

1.16(b), which permits a lawyer's withdrawal "when 'the client fails substantially

to fulfill an obligation to the lawyer regarding the lawyer's services and has been

given reasonable warning that the lawyer will withdraw unless the obligation is

fulfilled."' Peyzner submitted an accompanying certification that stated

defendant's relationship with plaintiff had "reached a point of irretrievable

differences in that plaintiff had not met the responsibilities outlined in the

retainer agreement." Specifically, Peyzner claimed that plaintiff had

failed to comply with its obligation to replenish an evergreen retainer and its separate obligation to remit a trial retainer at least [sixty] days before trial. In addition to and as a result of the foregoing, [p]laintiff ha[d] failed to pay its monthly invoices and a

A-1411-20 5 substantial outstanding unpaid balance has already accrued.

In response to defendant's application, the trial judge ordered Tasci to

"appear and show cause" as to why the judge should not relieve defendant from

representing plaintiff in the underlying matter. According to plaintiff, Tasci was

not advised of this hearing date. Notwithstanding the entry of the order to show

cause, defendant continued to represent plaintiff in the Micro Tech lawsuit,

including representing plaintiff during a twelve-day bench trial, as well as

during post-trial proceedings.

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3000 KENNEDY BOULEVARD, LLC v. PARKER IBRAHIM & BERG, LLP (L-0609-19, HUDSON COUNTY AND STATEWIDE), Counsel Stack Legal Research, https://law.counselstack.com/opinion/3000-kennedy-boulevard-llc-v-parker-ibrahim-berg-llp-l-0609-19-njsuperctappdiv-2022.