Capek v. Devito

767 A.2d 1047, 564 Pa. 267, 2001 Pa. LEXIS 592
CourtSupreme Court of Pennsylvania
DecidedMarch 21, 2001
Docket56 EAP 1999
StatusPublished
Cited by79 cases

This text of 767 A.2d 1047 (Capek v. Devito) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Capek v. Devito, 767 A.2d 1047, 564 Pa. 267, 2001 Pa. LEXIS 592 (Pa. 2001).

Opinion

OPINION

CAPPY, Justice.

The issue presented is whether the lower courts erred in awarding summary judgment to Appellee Jennifer Devito, thereby precluding Appellant, an attorney, from claiming a fee under a contingency fee agreement (“Agreement”) that included the language “no recovery no fee”, where the Agreement also provided for recovery of a fee under the doctrine of quantum meruit. For the reasons set forth herein, we reverse and remand for further proceedings. 1

The facts of this case, set forth in the light most favorable to Appellant as the non-moving party, Albright, 696 A.2d at 1165, are as follows: in September 1988, Appellee was involved in a car accident in which she suffered serious injuries. Shortly thereafter, she entered into a contingency fee agreement with Appellant and initiated a personal injury action in the Court of Common Pleas of Montgomery County.

On January 24, 1992, Appellant attended a settlement conference and subsequently agreed to a settlement figure of $275,000. On August 28, 1992, Appellant requested that Appellee execute a release as part of the settlement of her case. Appellee refused to do so, asserting that she had not been consulted about a settlement offer, that she had not authorized any settlement of her case, and that she would not accept the amount of $275,000 in settlement.

*271 Thereafter, the defendants in the underlying personal injury action filed a Petition to Confirm Settlement, naming Appellee as the only defendant. Two hearings were held before the Honorable Marjorie C. Lawrence, during which Appellant testified as a witness. On February 14, 1995, the court entered an order denying the Petition to Confirm Settlement.

Appellee subsequently terminated Appellant’s services and obtained new counsel, with whom she ultimately secured a jury verdict in excess of four million dollars. On June 27, 1995, Appellant filed the instant action pursuant to the Agreement to recover a fee in the amount of $82,500, representing thirty percent of the settlement offer which he had negotiated. The Agreement provided in pertinent part:

In consideration of the professional services, investigation and other services performed by my attorney in connection with my above-dated accident and injuries, my attorney shall receive One Third (jé) [30%] 2 of any sum recovered from any source on account of the said accident by way of settlement, judgment or otherwise, before deduction of costs, disbursements and expenses in the investigation and trial of the case.
Should this agreement be breached or otherwise terminated, my attorney shall be entitled to immediate reimbursement of costs, disbursements, and expenses and any payment of his fee according to the herein agreed percentage of whatever offer of settlement he may have negotiated to the date of breach or termination, or to payment of his fee based upon time actually expended at his prevailing rate, whichever is greater. Said charges shall constitute a lien upon the file which shall remain in the possession of my attorney until discharge of the lien in full.
* * *
SHOULD NO MONEY BE RECOVERED BY SUIT OR SETTLEMENT, MY SAID ATTORNEYS ARE TO HAVE *272 NO CLAIM AGAINST ME FOR SERVICES RENDERED.

Agreement (R.R. 1).

The parties filed cross-motions for summary judgment. The trial court determined that the plain language of the Agreement provided that Appellant could not recover without the existence of a settlement. The court noted that in the proceedings regarding the Petition to Confirm Settlement, another court of competent jurisdiction had already afforded the parties a full and fair chance to litigate the existence of a settlement. As that court had determined that no such settlement existed, the trial court concluded that the doctrine of collateral estoppel precluded a finding that there had been one. Consequently, the trial court granted Appellee’s motion for summary judgment, denied Appellant’s motion for summary judgment and dismissed Appellant’s complaint with prejudice.

The Superior Court affirmed in an unpublished opinion. The court found that although the Agreement contained a liquidated damages provision (regarding payment of fees if the Agreement was breached or terminated), the capitalized language at the bottom of the Agreement (the “no recovery no fee” provision) indicated that the parties contemplated payment of a fee to Appellant only in the event that Appellee recovered some amount through Appellant’s representation; because Appellee did not recover any amount through Appellant’s representation, Appellant was not entitled to any fee. The Superior Court further concluded that the liquidated damages provision only entitled Appellant to recover his fee in the event that he negotiated a settlement offer with his client’s consent, and that finding otherwise would allow recovery of a fee for services that the client did not request or authorize.

Appellant argues that when the Agreement is read in its entirety, the “no recovery no fee” provision bars his claim only if he serves as Appellee’s counsel through to an unsuccessful conclusion of the claim, not if Appellee discharges him prior to resolution of the case. He further asserts that the liquidated *273 damages provision is valid, and that he was required to include such a provision pursuant to Pa.R.P.C 1.5. 3

Appellee counters that Appellant has not properly preserved the issue of quantum meruit; that the present claim is barred under the doctrine of collateral estoppel; that the Agreement is unconscionable and violates several Rules of Professional Conduct; that Appellant himself breached the Agreement by accepting a settlement without his client’s authority to do so; and that the Agreement’s plain language precludes any recovery because Appellant did not obtain any money by suit or settlement.

Initially, we will address Appellee’s argument that Appellant is not entitled to recover on the basis of the equitable doctrine of quantum meruit, but only pursuant to the liquidated damages provision. Appellant contends that he was not required to plead a separate count requesting equitable relief as the Agreement included his right to quantum meruit pursuant to the specific contractual provision he sought to enforce. Despite the nuances of their arguments, the parties agree that Appellant’s recovery depends upon the express terms of the contract, a claim which was raised in the complaint. Therefore, we will analyze this case according to those provisions.

“[W]hen a written contract is clear and unequivocal, its meaning must be determined by its contents alone.” Commonwealth of Penn., Dept, of Transp. v. Manor Mines, Inc., *274 523 Pa. 112, 565 A.2d 428, 432 (1989) (citations omitted).

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Cite This Page — Counsel Stack

Bluebook (online)
767 A.2d 1047, 564 Pa. 267, 2001 Pa. LEXIS 592, Counsel Stack Legal Research, https://law.counselstack.com/opinion/capek-v-devito-pa-2001.