Anderson v. Elliott

555 A.2d 1042, 1989 Me. LEXIS 52
CourtSupreme Judicial Court of Maine
DecidedMarch 8, 1989
StatusPublished
Cited by16 cases

This text of 555 A.2d 1042 (Anderson v. Elliott) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anderson v. Elliott, 555 A.2d 1042, 1989 Me. LEXIS 52 (Me. 1989).

Opinion

McKUSICK, Chief Justice.

On this appeal by a practicing Maine lawyer, we reject his attack on the constitutionality of the requirement of the Maine Bar Rules that he submit to binding arbitration of a dispute with his client over the lawyer’s fee.

The Supreme Judicial Court promulgated the Maine Bar Rules in 1978. Rule 9 establishes a mechanism for binding arbitration of attorney-client fee disputes under the jurisdiction of the Board of Overseers of the Bar, and Rule 3.3(c) obligates an attorney to submit any fee dispute to Rule 9 arbitration at the client’s request. After ten years of operation, this client-initiated compulsory fee arbitration process now faces its first constitutional challenge. Bo-othbay Harbor attorney Richard Elliott, whose suit in the Superior Court to recover a fee from his client was dismissed as the result of a Rule 9 proceeding, argues that the Supreme Judicial Court in its rulemak-ing has infringed his right under the Maine Constitution to trial by jury “[i]n all civil suits ... except where it has heretofore been otherwise practiced.” Me. Const, art. I, § 20. 1 We hold that the establishment of this fee dispute resolution process is within the Supreme Judicial Court’s inherent power to regulate the bar, and we affirm the judgment of the Superior Court (Lincoln County; Perkins, J.) confirming an award by the Fee Arbitration Commission of the Board of Overseers in favor of Howard Anderson, the personal representative of Elliott’s deceased client J. Russell Hornsby.

I.

The Fee Dispute

In the fall of 1983, Hornsby, himself a practicing lawyer in Orlando, Florida, retained Elliott on a contingent fee basis to represent him in a title dispute with a third party over land Hornsby owned in Booth-bay Harbor. They executed a written fee agreement as required by Maine Bar Rule 8. The agreement limited Elliott’s fee to one third of the “money damages recovery” and provided that:

The client is not to be liable to pay compensation otherwise than from amounts collected for him by the attorney except as follows: None.

The title dispute was settled in the spring of 1984 with an exchange of deeds and the payment by the third party to Hornsby of $5,000 delivered to Elliott. Elliott kept the entire amount and billed Hornsby for an additional $9,101.51, on the ground that his efforts had enhanced the value of the property by $46,500. Hornsby died in July of 1986 with that fee dispute unresolved.

The following April, Elliott commenced a breach of contract action against Anderson, Hornsby’s personal representative, in the Superior Court, and in July he filed a claim against the estate in the Lincoln County Probate Court. In September 1987 Anderson denied the claim against the estate and filed a petition for fee arbitration under Maine Bar Rule 9, asking that Elliott be ordered to refund $2,500 to the estate. Elliott’s reply to the petition addressed only the merits of Anderson’s claim. A Fee Arbitration Panel held a hearing on February 18,1988, and the same day granted Anderson the relief he requested. 2

*1044 In its decision, the Panel ruled first that Elliott’s evidence of an increase in value from the exchange of deeds was “insufficient and incomplete,” not only failing to substantiate his appraisal of the property received but also omitting altogether the value of the property conveyed. Second, by the terms of the agreement such an increase in value, even if proven, would be irrelevant. When the agreement was negotiated, Hornsby had expressly rejected Elliott’s proposals for a retainer, saying that “we both deal with contingent fee agreements all the time. It is like shaking dice to see what we all get.” The Panel

conclude[d] that [Hornsby] and [Elliott], both being practicing lawyers, entered into a bargain for fees and that they are both bound by that bargain. In the absence of an agreement by Petitioner, we would feel obliged to order a refund of all monies in excess of $1,666.67 [one third of the $5,000 paid to Elliott].... [But, a]t the close of the hearing, Petitioner agreed that [$2,500] was all he was seeking. Consequently, we ... order that that sum be paid forthwith.

Only after learning of the Panel’s adverse decision did Elliott first contest its authority to resolve the dispute. When Anderson filed a motion in the Superior Court for entry of judgment confirming the arbitration award pursuant to Maine Bar Rule 9(i) and 14 M.R.S.A. § 5937 (1980), Elliott moved under 14 M.R.S.A. § 5938 (1980) to vacate the award, contending that the Maine Declaration of Rights forbids any compulsory arbitration law that does not provide a right to review the arbitrator’s award through a jury trial de novo. 3 The court granted Anderson’s motion, entering judgment in his favor for $2,500 and dismissing Elliott’s pending contract action.

We affirm the judgment of the Superior Court because Elliott failed to raise his constitutional objections in a timely manner. In his reply and thereafter before the Panel, Elliott participated fully in the resolution of the dispute on its merits. He never once registered with the Panel any objection or protest, nor did he take any steps to prosecute his already pending Superior Court suit for his fee or in any other way pursue collateral relief in the courts. Elliott’s belated contention that he was unconstitutionally coerced into submitting to arbitration lacks an essential element — he has made no showing that he was coerced at all.

There is a strong public policy favoring arbitration. Cf. J.M. Huber Corp. v. Main-Erbauer, Inc., 493 A.2d 1048, 1049-50 (Me.1985) (arbitration clause). The fee arbitration mechanism created by the Maine Bar Rules encourages the efficient resolution of sensitive monetary disputes between clients and their own attorneys. That desirable objective would be seriously frustrated if an attorney could wait to see if the panel rules in his favor before claim *1045 ing that the arbitration procedure is itself unconstitutional. Cf. Monmouth School Comm. v. Huston, 437 A.2d 621, 623 (Me. 1981) (party to arbitration may not wait until after decision to object to procedure); McNeal v. Black, 61 N.C.App. 305, 307, 300 S.E.2d 575, 577 (1983) (stockbroker’s constitutional objection to arbitration under threat of professional sanctions untimely when first raised after client’s motion to confirm: “If Black had prevailed at the arbitration hearing, it is clear that he would not be challenging the procedure at this time.”). Even in the more compelling circumstance where the constitutional protection guaranteed a criminal defendant is at stake, the constitutional claim must as a rule be preserved at trial to be cognizable on appeal. State v. Mann, 361 A.2d 897, 904 (Me.1976).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cleveland Metro. Bar Assn. v. Morton (Slip Opinion)
2021 Ohio 4095 (Ohio Supreme Court, 2021)
BiotechPharma, LLC v. Ludwig & Robinson, PLLC
98 A.3d 986 (District of Columbia Court of Appeals, 2014)
Stanley v. Liberty
Maine Superior, 2014
Leete & Lemieux, P.A. v. Horowitz
2012 ME 115 (Supreme Judicial Court of Maine, 2012)
Randall v. Conley
2010 ME 68 (Supreme Judicial Court of Maine, 2010)
Shimko v. Lobe
813 N.E.2d 669 (Ohio Supreme Court, 2004)
Shimko v. Lobe
790 N.E.2d 335 (Ohio Court of Appeals, 2003)
Bennett v. Prawer
2001 ME 172 (Supreme Judicial Court of Maine, 2001)
Schindler v. Nilsen
2001 ME 58 (Supreme Judicial Court of Maine, 2001)
In Re Estate of McCormick
2001 ME 24 (Supreme Judicial Court of Maine, 2001)
Harrington v. Lord
1997 ME 201 (Supreme Judicial Court of Maine, 1997)
A. Fred Miller v. Purvis
921 P.2d 610 (Alaska Supreme Court, 1996)
Rollings v. Thermodyne Industries, Inc.
1996 OK 6 (Supreme Court of Oklahoma, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
555 A.2d 1042, 1989 Me. LEXIS 52, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-v-elliott-me-1989.