Bedin v. Mueller

2024 IL App (1st) 221000-U
Appellate Court of Illinois·Decided July 12, 2024·No. 1-22-1000·Unpublished

Opinion

2024 IL App (1st) 221000-U

FIFTH DIVISION

July 12, 2024

No. 1-22-1000

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

IN THE

APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT

JANET BEDIN, Individually and as Special ) Administrator of the Estate of Dolores Bedin, Deceased, )

) Appeal from the

Plaintiff-Appellant, ) Circuit Court of ) Cook County.

v. )

) No. 13 L 13639

KYLE MUELLER, NORTHWESTERN SURGICAL ) ASSOCIATES, ELISABETH WALLNER, and ) Honorable NORTHWESTERN MEMORIAL HOSPITAL, ) Allen Walker, ) Judge Presiding.

Defendants, )

)

(O’Connor Law Group, LLC, Appellee). )

JUSTICE MIKVA delivered the judgment of the court.

Presiding Justice Mitchell and Justice Lyle concurred in the judgment.

ORDER

¶1 Held: Order granting appellee attorney fees and costs pursuant to a theory of quantum meruit is affirmed where the circuit court found appellee’s failure to comply with Rule 1.5(c) of the Illinois Rules of Professional Conduct of 2010 (Ill.

R. Prof’l Conduct R. 1.5(c) (eff. Jan. 1, 2010)) is not an adequate bar to compensation; the circuit court further did not abuse its discretion in calculating fees or costs.

¶2 Plaintiff Janet Bedin (Ms. Bedin) appeals the decision of the circuit court awarding attorney

fees and expenses to O’Connor Law Group, LLC (OLG), arising from the settlement of an underlying medical malpractice case. In that case, OLG represented Ms. Bedin in her capacity as special administrator of her mother’s estate. OLG neglected to have Ms. Bedin sign a written retainer agreement. The circuit court awarded both fees, which totaled 30% of the total settlement, and costs pursuant to a theory of quantum meruit. For the reasons that follow, we affirm.

¶3 I. BACKGROUND

¶4 Dolores Bedin (Dolores) died in August 2011 from pancreatic cancer. The Circuit Court of Winnebago County appointed her daughter, Ms. Bedin, as the executor of Dolores’s estate. Ms. Bedin has one brother, Alexander Bedin (Alexander).

¶5 Between December 2010 and August 2012, Ms. Bedin (or her mother initially) retained three separate law firms, one after the other, to file a medical malpractice case in relation to the diagnosis and treatment of Dolores’s illness. In each agreement, Ms. Bedin or Dolores agreed to pay a one-third contingent fee and expenses.

¶6 In August 2012, the third firm filed a complaint in the Circuit Court of Cook County. The complaint alleged that Kyle Mueller, M.D., Northwestern Surgical Associates, Elisabeth Wallner M.D., and Northwestern Memorial hospital (collectively, defendants) were responsible both for Dolores’s wrongful death and for negligence under the Illinois Survival Act (755 ILCS 5/27-6 (West 2012)).

¶7 In June 2015, the fourth firm, OLG, the appellee in this case, filed an appearance. In July, it substituted for the previous firm.

¶8 In litigating the underlying action, OLG filed two amended complaints, partially defeated a motion to strike portions of the second amended complaint, and defended against at least three motions for partial summary judgment. It retained five experts, deposed over 20 witnesses, and

participated in mediation. According to a table of litigation expenses submitted by OLG, litigation costs totaled $90,283.90, primarily arising from expert depositions and expert retainer fees.

¶9 In October 2017, an attorney from OLG sent Ms. Bedin a letter to an address in Rockford, Illinois. The letter begins, “Because it is so difficult to get ahold of you, and because it is almost impossible to set a meeting with you so that you actually show up, I am notifying you of several things.” The letter goes on, “Of course, you never paid any of my expenses which you promised on so many occasions, but at this point, I have given up on that, so we will just work on the 1/3 contingent fee.” The letter concludes, “We also need your New York City address for client contact purposes.”

¶ 10 On October 31, 2017, the case was assigned to Judge Allen Price Walker. Judge Walker’s award of fees and costs became enmeshed in the parties’ settlement of the medical malpractice claims, so we set out these events together

¶ 11 On December 27, 2017, the parties participated in a mediation. Following the mediation, defendants offered to settle the malpractice case for $550,000. OLG agreed to this amount on Ms. Bedin’s behalf via email, though she was not part of the email thread. It then sent notice of its attorney’s lien to Dr. Mueller’s and Dr. Wallner’s insurer’s attorney.

¶ 12 On January 22, 2018, OLG sent Ms. Bedin an email advising her to set up a trust to protect funds from the settlement that would be distributed to Ms. Bedin’s brother, Alexander, who, according to the email, was disabled and would, absent a trust, lose much of the proceeds to Medicare. In the email, OLG also asked Ms. Bedin to “[c]all [OLG] to discuss all this sometime TODAY.” Ms. Bedin responded saying she would call in 30 minutes.

¶ 13 Near the end of the workday, OLG emailed Ms. Bedin again saying, “Jan, I haven’t heard from you as promised. I don’t know what your intentions are.

*** And, so we are clear, if you are balking at my fees, I need to know that also. If I charge you by the hour, which I can do, the fees would be greater than the reduced amount I am proposing.”

¶ 14 After the workday, Ms. Bedin responded saying she would call in 15 minutes. In its brief, OLG states that Ms. Bedin did not call.

¶ 15 On January 24, 2018, individual defendant Elisabeth Wallner, M.D., filed a motion to enforce the previously agreed settlement and obtain dismissal.

¶ 16 At the hearing to review the reported settlement, Judge Walker considered both Dr. Wallner’s motion and a separate motion, filed by OLG, titled “Plaintiff’s Petition To Approve Wrongful Death Settlement and Proposed Distribution.” The motion included a request for fees and costs. There is no transcript in the record of this hearing, but in its brief, OLG represents that it orally advised the circuit court that Ms. Bedin objected to the payment of expenses and that she wanted to consult another attorney. The circuit court continued the matter.

¶ 17 On January 29, 2018, Judge Walker dismissed the case with prejudice in light of the settlement. According to OLG’s brief, the court also contacted OLG and told it to remove a few minor expenses from a list of costs. OLG then submitted an amended petition with the requested expenses removed. OLG also added language to the amended petition noting that Ms. Bedin “will no longer cooperate in final resolution, [and OLG therefore] requests [the] Court to approve settlement and proposed distribution as set forth.” OLG further stated that it agreed with Ms. Bedin to reduce its contingent award from one-third to 30%.

¶ 18 On January 31, the circuit court granted an order approving the settlement and finding that OLG and Ms. Bedin “entered into an agreement” for a 30% contingent fee in the amount of $165,000. The court also approved the distribution of $90,283.90 for fair and reasonable expenses.

It retained jurisdiction for purposes of enforcing the settlement and adjudicating any liens. Lastly, the settlement was made subject to approval of the probate division of the Circuit Court of Winnebago County.

¶ 19 A hearing for status on the execution of the settlement release and enforcement was continued three times until it was finally held on March 23, 2018. According to the transcript of that hearing, Ms. Bedin arrived late. Before her arrival, an OLG attorney stated, “Judge, I feel awful that we’re wasting the Court’s time I apologize to counsel here, as well. And if we continue this until Monday, [Ms. Bedin] might not be on time *** again. So I just want to put that out there.”

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