Camden National Bank v. Steamship Navigation Co.

2010 ME 29, 991 A.2d 800, 2010 Me. LEXIS 30
CourtSupreme Judicial Court of Maine
DecidedApril 1, 2010
DocketDocket: Oxf-09-250
StatusPublished
Cited by11 cases

This text of 2010 ME 29 (Camden National Bank v. Steamship Navigation Co.) 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
Camden National Bank v. Steamship Navigation Co., 2010 ME 29, 991 A.2d 800, 2010 Me. LEXIS 30 (Me. 2010).

Opinions

[801]*801Majority: SAUFLEY, C.J., and ALEXANDER, LEVY, and MEAD, JJ.

Dissent: JABAR, J.

MEAD, J.

[¶ 1] The State of Maine appeals, and Steamship Navigation Company (Steamship) cross-appeals, from the judgment of the Superior Court (Oxford County, Wheeler, J.) finding that Daniel G. Lilley, P.A. (Lilley) had perfected an attorney lien and was entitled to 35% of Steamship’s “gross recovery” from a separate lawsuit. As we find no error in the trial court’s conclusion that Lilley had perfected an attorney lien, we affirm that aspect of the judgment. However, we conclude that Lil-ley’s contingent fee should have been based upon the net recovery by Steamship in its action against Camden National Bank (Bank), not the total jury award plus interest, and we vacate that portion of the judgment.

I. BACKGROUND

[¶ 2] Steamship and the Bank have been involved in litigation concerning a series of events in their lending relationship since 2001. During that time, Steamship and the State were also involved in litigation regarding environmental violations at Steamship’s property in the Town of Warren. Once the underlying claims between Steamship and the Bank were resolved, the Bank instituted this inter-pleader action to determine the priority of Steamship’s creditors, which included both Lilley and the State. Viewed in the light most favorable to Lilley as the prevailing party, see Garrison City Broad., Inc. v. York Obstetrics & Gynecology, P.A., 2009 ME 124, ¶ 13, 985 A.2d 465, 469, the record supports the following facts.

A. Prior Litigation Between Steamship and the Bank

[¶ 3] In April 2001, Steamship filed a complaint, which included tort and contract claims, against the Bank. Three weeks later, the Bank brought a foreclosure action against Steamship. At that time, a law firm other than Lilley represented Steamship.

[¶ 4] Steamship’s motion to dismiss the foreclosure action was denied. The court (Perkins, J.) agreed with the Bank that its claims in the foreclosure action were not compulsory counterclaims to Steamship’s lawsuit pursuant to M.R. Civ. P. 13(a). However, the two cases were “consolidated pursuant to M.R. Civ. P. 42(a) for the purposes of discovery” due to “the overlap in parties and issues.” Steamship then attempted to incorporate its tort and contract claims into the foreclosure action as counterclaims, but the court (Delahanty, J.) dismissed them with prejudice.

[¶ 5] Lilley joined the other law firm in its representation of Steamship in January 2002 and signed a contingent fee agreement (2002 Agreement) with them. In December 2002, a summary judgment was entered against Steamship in the foreclosure action. On one of the Bank’s foreclosure claims, the court specified that the amount of attorney fees and costs would not be determined until Steamship’s tort and contract action was resolved. For the Bank’s other claims, the court allowed the Bank to wait for the resolution of Steamship’s action before filing a claim for attorney fees and costs. The Bank subsequently obtained a deficiency judgment against Steamship.

[¶ 6] In the fall of 2004, it was agreed that the other law firm would be released from its representation, and Lilley executed a new contingent fee agreement (2004 Agreement) with Steamship. Pursuant to the 2004 Agreement, Lilley would be paid [802]*802“35% ... for settlement or trial (not to include appeal) of gross recovery.” (Emphasis omitted.) It also stated that the contingent fee would be based upon “actual collection of judgment or settlement” and paid “via direct deduction from funds received in trust.” 1

[¶ 7] In September 2004, a jury awarded Steamship $1,500,000 in its action against the Bank. We affirmed the judgment on appeal. S.S. Navigation Co. v. Camden Nat’l Bank, 2006 ME 11, ¶¶ 7-10, 889 A.2d 1014, 1017-18.

[¶ 8] In September 2006, the court (1) denied Steamship’s motion to set aside the foreclosure judgment; (2) set off the Bank’s deficiency judgment resulting from the foreclosure action against Steamship’s jury award, leaving a balance of $638,290.66 owing to Steamship; and (3) calculated the costs, expenses, and accrued interest on both parties’ judgments. On appeal, we affirmed each aspect of the court’s judgment. Camden Nat’l Bank v. Dunican, Mem-07-84 (May 8, 2007).

B. The Current Interpleader Action

[¶ 9] Following the court’s set off of the Bank’s deficiency judgment against Steamship’s jury award, the Bank filed this interpleader action. It requested that the court allow it to pay its net obligation through the court, which would halt the accrual of interest, and determine the priority of Steamship’s creditors, including Lilley and the State. In August 2007, the court (Wheeler; J.) (1) denied Steamship’s motion to dismiss the interpleader action; (2) authorized the Bank to make payment to the court; and (3) determined that the Bank should pay $638,290.66 plus the post-judgment interest that had accrued on the full amount of the $1,500,000 judgment. The Bank subsequently paid $739,000.38 to the court (the interpleader fund).2

[¶ 10] Following a trial on the inter-pleader action, the court determined that (1) Lilley had established a valid attorney lien as to “35% of the gross Steamship recovery,” (2) attorney fees in that amount would be reasonable, and (3) the attorney lien had first priority. Also, the court denied Steamship’s motion for judgment as a matter of law against the State, which claimed that the State had not perfected its lien against Steamship. The State’s appeal and Steamship’s cross-appeal followed.

II. DISCUSSION

A. Perfection of Lilley’s Attorney Lien

[¶ 11] In its appeal, the State initially argued that an attorney lien should be held to the same perfection standards as other types of liens, and it contended Lil-ley had not satisfied these requirements. The State has since taken the position that we need not address the perfection issue if we find that Lilley’s lien should have been based on 35% of the interpleader fund, rather than 35% of Steamship’s jury award plus interest. We find no error in the trial court’s conclusion that Lilley had established and perfected an attorney lien, and we affirm that portion of the judgment. See Libner v. Me. County Comm’rs’ Ass’n, 2004 ME 39, ¶¶ 10-11, 845 A.2d 570, 573; Newbert v. Cunningham, 50 Me. 231, 232-33 (1863).

B. The Set Off

[¶ 12] Before discussing the calculation of Lilley’s contingent fee, we note [803]*803that, functionally, the Bank’s deficiency judgment and Steamship’s jury award were part of a single recovery. Although the Bank’s foreclosure action and Steamship’s tort/contract action were not fully consolidated, they were consolidated for discovery due to the recognition that there was an “overlap in parties and issues.” The cases were also brought together to calculate the Bank’s attorney fees. In its previous appeals, Steamship did not assert error in the denial of its motion to dismiss the Bank’s foreclosure action and the dismissal of its counterclaims in that action. In this unusual circumstance, we approved the set off, Camden Nat’l Bank,

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

Related

The Bank of New York Mellon, N.A. v. Re/Max Realty One
2014 ME 66 (Supreme Judicial Court of Maine, 2014)
John E. McDonald Jr. v. Scitec, Inc.
2013 ME 59 (Supreme Judicial Court of Maine, 2013)
Kondaur Capital Corp. v. Hankins
2011 ME 82 (Supreme Judicial Court of Maine, 2011)
Lyman v. Huber
2010 ME 139 (Supreme Judicial Court of Maine, 2010)
Camden National Bank v. Steamship Navigation Co.
2010 ME 29 (Supreme Judicial Court of Maine, 2010)

Cite This Page — Counsel Stack

Bluebook (online)
2010 ME 29, 991 A.2d 800, 2010 Me. LEXIS 30, Counsel Stack Legal Research, https://law.counselstack.com/opinion/camden-national-bank-v-steamship-navigation-co-me-2010.