Bagley v. O'Brien

1 Mass. L. Rptr. 153
CourtMassachusetts Superior Court
DecidedSeptember 17, 1993
DocketNo. 90-4774-D
StatusPublished

This text of 1 Mass. L. Rptr. 153 (Bagley v. O'Brien) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bagley v. O'Brien, 1 Mass. L. Rptr. 153 (Mass. Ct. App. 1993).

Opinion

Lauriat, J.

The plaintiffs, Gerald and Patricia Bagiey, (the “Bagleys"), brought this action against the individual defendants, attorneys Ruth R. O’Brien and Katrina Weinrig, and their law firm, Ropes & Gray of Boston, Massachusetts. The Bagleys allege that the defendants negligently failed to include a claim of adverse possession in either of two lawsuits that the defendants filed on then-behalf challenging the actions of others that had adversely affected a parcel of land in Boston in which the Bagleys asserted an ownership interest.

The defendants answered the plaintiffs’ complaint and a period of discovery followed. Eventually, counsel for the parties began to discuss settlement possibilities, and after a series of offers was made by counsel for the defendants, a settlement agreement was apparently reached with counsel for the plaintiffs. When that settlement was reported to the court at a status conference, the plaintiff Gerald Bagiey, who was also present, objected. The defendants thereafter filed a Motion To Enforce Settlement Agreement and requested an evidentiary hearing on that motion.

The court held an evidentiary hearing on the defendants’ motion on March 24 and July 1, 1993. Testimony was presented from Nicholas C. Theodorou, counsel for the defendants in the present action, Richard B. Klibaner, former counsel for the plaintiffs in the present action, and the plaintiffs, Gerald Bagiey and Patricia Bagiey. The court also received into evidence a letter from Klibaner to the Bagleys dated December 8, 1992 (Exhibit 1), and a letter from Klibaner to the Bagleys dated December 14, 1992 (Exhibit 2).

Upon consideration of the credible testimony of the witnesses and the exhibits presented by the parties, and the reasonable inferences to be drawn therefrom, and upon consideration of the written submissions and the oral arguments of counsel, the court makes the following findings of fact and rulings of law on the defendants’ Motion To Enforce Settlement Agreement in this action.

FINDINGS OF FACT

1. In October 1992, more than two years after this action was filed and after the parties had engaged in discovery, Nicholas C. Theodorou (“Theodorou”), as counsel for the defendants, and Richard C. Klibaner [154]*154(“Klibaner”), as counsel for the plaintiffs, began to discuss settlement of the action. On October 21,1992, Theodorou asked Klibaner for a settlement demand, and Klibaner agreed to discuss the matter with the Bagleys. On October 21, 1992, after a status conference was held in this action before the Suffolk County Superior Court, Gerald Bagley, in the presence of Klibaner, told the defendants’ co-counsel, Michael Keating, that his demand was $15,000 to $16,000.

2. In early November 1992, Theodorou made an offer of $5,000 on behalf of the defendants to settle the case. Through Klibaner, the Bagleys rejected that offer, and Klibaner indicated that their demand was still $15,000.

3. Later in November 1992, Theodorou made an offer of $10,000 on behalf of the defendants to settle the case. Klibaner again rejected that offer and reported that the Bagleys were adamant about settling the case for $15,000.

4. In early December 1992, Theodorou obtained authority from the defendants to settle the case for $15,000, and on December 4, 1992, he conveyed that offer to Klibaner. Klibaner accepted the offer and the parties agreed to cancel depositions in the case that were scheduled to begin shortly thereafter.

5. On December 8, 1992, Klibaner wrote a letter to the Bagleys advising them that “the defendants have accepted our offer to settle this case for $15,000.” (Exhibit 1.) Klibaner did not receive a written or verbal response to this letter from either of the Bagleys. From December 8 until December 14, 1992, Klibaner tried unsuccessfully to reach the Bagleys by telephone. He left several messages requesting Gerald Bagley to call him.

6. On December 14, 1992, Klibaner again wrote a letter to the Bagleys advising them of the settlement and of a status conference that was scheduled before the Suffolk County Superior Court at 2:00 p.m. on December 15, 1992, at which he intended to report to the judge that “we have reached a settlement in principle.” (Exhibit 2.) Klibaner also advised the Bagleys in that letter that he anticipated that the judge would “then issue a ‘thirty-day order’ ’’ and that “therefore, it will be essential that we conclude the settlement before the end of that 30 days." Klibaner also repeated the terms of the settlement and added that the defendants had asked that the Bagleys sign a confidentiality agreement, a point that he intended to discuss with the Bagleys. Klibaner sent his letter of December 14, 1992 to the Bagleys by Federal Express.

7. On December 15, 1992, Theodorou and Klibaner appeared before a judge of the Suffolk County Superior Court in the session to which the case had been assigned. When the case was called for a status conference, both counsel reported to the court that the case had been settled, However, Gerald Bagley, who was present in the courtroom, immediately approached the court and stated that the case was not settled.

RULINGS OF LAW

An attorney representing a party in litigation has broad authority to perform those tasks necessary or incidental to the prosecution and management of the case. Precious v. O’Rourke, 270 Mass. 305, 308 (1930). The attorney-client relationship, however, does not automatically vest in the attorney the authority to enter into a binding settlement agreement on behalf of the client. Hubbard v. Peairs, 24 Mass.App.Ct. 372, 377-78 (1987). It is within the general powers of an attorney to take actions which affect the client’s remedy but not the cause of action. DeSantis v. Massachusetts Bonding and Ins. Co., 289 Mass. 315, 321 (1935); Precious v. O’Rourke, supra at 308.

The attorney may not settle the litigation or otherwise take any action which affects the substantial rights of the client without obtaining the client’s express or implicit consent. Hubbard v. Peairs, supra at 377-78. See also Medford v. Corbett, 302 Mass. 573, 574-75 (1939) (a client may authorize an attorney to compromise substantial rights by implication from conduct); ICC v. Holmes, 983 F.2d 1122, 1129 (1st Cir. 1993) (actual authority may be implied where principal acquiesced in or adopted action of agent); Raftery v. Coates, 4 Mass.App.Dec. 39, 41 (1952) (a client may subsequently ratify a settlement negotiated by an attorney). If an attorney seeks to compromise the substantial rights of the client by agreement, “the opposing party must ascertain at his peril whether the attorney has the authority to make the settlement.” Precious v. O’Rourke, supra at 308.

The proposed settlement agreement at issue here undoubtedly affects the substantial rights of the Bagleys. The offer by Ropes & Gray to pay the Bagleys $15,000, if accepted, would extinguish their pending claims against the defendants and release the defendants from the threat of future litigation. The primary issue, then, is whether the Bagleys authorized Kliba-ner to compromise their rights by entering into a settlement agreement with the defendants.

The evidence shows that the Bagleys neither gave Klibaner explicit or implicit authority to effect a final settlement of their claims nor ratified the proposed settlement agreement.

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Related

Hubbard v. Peairs
509 N.E.2d 41 (Massachusetts Appeals Court, 1987)
Precious v. O'Rourke
170 N.E. 110 (Massachusetts Supreme Judicial Court, 1930)
DeSantis v. Massachusetts Bonding & Insurance
289 Mass. 315 (Massachusetts Supreme Judicial Court, 1935)
City of Medford v. Corbett
20 N.E.2d 402 (Massachusetts Supreme Judicial Court, 1939)
Carver v. Waldman
488 N.E.2d 427 (Massachusetts Appeals Court, 1986)

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1 Mass. L. Rptr. 153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bagley-v-obrien-masssuperct-1993.