Capron & Edwards P.C. v. Holden & Carr, P.C.

331 F. App'x 563
CourtCourt of Appeals for the Tenth Circuit
DecidedMay 20, 2009
Docket07-7050
StatusUnpublished
Cited by8 cases

This text of 331 F. App'x 563 (Capron & Edwards P.C. v. Holden & Carr, P.C.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Capron & Edwards P.C. v. Holden & Carr, P.C., 331 F. App'x 563 (10th Cir. 2009).

Opinion

ORDER AND JUDGMENT *

TERRENCE L. O’BRIEN, Circuit Judge.

Capron & Edwards, P.C., appeals from the district court’s grant of summary judg *565 ment in favor of Holden & Carr, P.C., enforcing its attorney’s lien and adopting its interpretation of a fee agreement. We conclude Capron & Edwards has standing to appeal and the district court’s exercise of supplemental jurisdiction was proper, but reverse because the court erred in interpreting the fee agreement.

I.BACKGROUND

On March 4, 2004, Holden & Carr (formerly Holden & McKenna) entered into a fee agreement (“Fee Agreement”) with Samuel Edwards (“plaintiff’). Stephen J. Capron, then a member of Holden & Carr, negotiated and prepared the Fee Agreement and executed it on behalf of the firm. The Fee Agreement provides, in pertinent part:

WHEREAS, Client has agreed to employ Attorney to bring said actions and prosecute the same through trial only, or otherwise satisfactory settlement to Client and Attorney before trial
A. Except as otherwise limited by law, Attorney’s fees to be paid by Client shall be calculated in accordance with the following:
1. In the event said cause or causes are settled without suit, or in the even[t] suit is filed and successfully settled or otherwise resolved before pre-trial, a sum equal to forty-five percent (45%) of the first $200,000 of damages recovered will be Attorney’s fee.
2. In the event said cause or causes are settled after pre-trial, but before any appeal, or in the event said cause or causes are successfully tried and collection of any judgment is made before any appeal is filed, a sum equal to fifty percent (50%) of all damages recovered will be Attorney’s fee.
3. In the event that damages in excess of $200,000 are recovered, a sum equal to fifty percent (50%) of those damages in excess of $200,000 will be Attorney’s fee in addition to the Attorney’s fee described in paragraph number one.
4. In the event a judgment obtained is appealed by the defendant or defendants, or in the event that Client deems an appeal to be appropriate for any reason, Attorney is not obligated to engage in any representation of Client on appeal. Any such representation will be negotiated separately from this agreement for representation in the trial court, and any agreement reached between the parties for such representation will be subject to a separate written contract or will not be enforceable by either party.
* * #
6. All necessary costs and expenses of said litigation, including the necessary personal expenses of Attorney in connection therewith, shall be advanced by Attorney, but shall be borne and paid by Client and shall be deducted from that portion of the total recovery before Attorney’s fee is calculated.
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B. With the exception of the pursuit of an appeal, Attorney agrees that he will diligently institute and prosecute said action to a final determination in the proper trial court and make all reasonable and necessary efforts to collect any judgment that may be rendered therein in favor of Client. Further, Attorney will promptly communicate to Client *566 any and all offers of compromise of said cause.
D. ■ If representation is terminated by Client or by Attorney for any reason, Attorney shall be entitled to compensation at the rate of $200.00 per hour for all work performed by Attorney for Client, and at the rate of $100.00 per hour for all work performed by any paralegal for Client. Further, Client grants Attorney a lien against any proceeds from the immediately completed litigation and any related litigation involving the same parties or basic nucleus of common facts for any amounts owed under this Agreement.

(Appellant’s App. at 145-47.)

On March 10, 2004, Holden & Carr filed a complaint in federal district court on behalf of the plaintiff, seeking damages from multiple defendants for injuries sustained in a workplace accident involving a rotary feeder machine used to process tea. The caption of the complaint included the notation: “Attorney Lien Claimed.” (Ap-pellee’s Supp.App. at 1.) Capron acted as the lead attorney at trial and, on February 18, 2005, the jury rendered a $1.5 million verdict in favor of the plaintiff.

On June 30, 2005, Capron resigned from Holden & Carr to establish a new firm, Capron & Edwards (no relation to the plaintiff). On July 11, the plaintiff requested his file be transferred from Holden & Carr to Capron & Edwards. At the time of this request, no money had been recovered from the defendants and post-trial proceedings were still pending. Capron (now at Capron & Edwards) represented the plaintiff in post-trial proceedings, in settlement discussions and on appeal. 1 On February 13, 2006, seven months after the plaintiffs file was transferred to Capron & Edwards, the court entered various orders on post-trial motions and, on March 24, 2006, final, judgment was entered.

On June 30, 2006, Capron & Edwards informed Holden & Carr it had received partial payment on the judgment. 2 Ca-pron & Edwards requested Holden & Carr submit documentation of the time it spent on the plaintiffs case so it could determine the hourly fee due under ¶0 of the Fee Agreement. Holden & Carr responded by claiming entitlement to a contingent fee under ¶ A(3) of the Fee Agreement. 3 Ultimately, Capron & Edwards deposited the disputed funds in its trust account and paid the remainder to the plaintiff.

On July 3, 2006, Holden & Carr filed an application for hearing on enforcement of its attorney’s lien. Before the court ruled on the application, the plaintiff filed a motion to dissolve the claimed attorney’s lien. 4 On September 25, 2006, Holden & Carr moved for summary judgment seeking enforcement of its lien. [Appellant’s App. at 126-70] Capron & Edwards filed a cross-motion for summary judgment.

The district court granted Holden & Carr’s motion and denied Capron & Edwards’s cross-motion. The court found *567 “no significant dispute in the facts presented” and determined the issue was ripe for summary judgment. (Appellant’s App. at 221.) The court determined the contract was unambiguous and entitled Holden & Carr to a fee pursuant to the contingent fee clause (¶ A(3)), not the termination of representation clause (¶ D), because Holden & Carr had fully performed its contractual obligations prior to the transfer of representation. Capron & Edwards requests the summary judgment order be vacated and funds be apportioned pursuant to ¶ D. The plaintiff is not a party to this appeal. 5

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Bluebook (online)
331 F. App'x 563, Counsel Stack Legal Research, https://law.counselstack.com/opinion/capron-edwards-pc-v-holden-carr-pc-ca10-2009.