Carr v. Pearman

860 N.E.2d 863, 2007 Ind. App. LEXIS 180, 2007 WL 258317
CourtIndiana Court of Appeals
DecidedJanuary 31, 2007
Docket45A03-0507-CV-323
StatusPublished
Cited by14 cases

This text of 860 N.E.2d 863 (Carr v. Pearman) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carr v. Pearman, 860 N.E.2d 863, 2007 Ind. App. LEXIS 180, 2007 WL 258317 (Ind. Ct. App. 2007).

Opinion

OPINION ON REHEARING

SHARPNACK, Judge.

Bruce Carr petitions for rehearing on Carr v. Pearman, 854 N.E.2d 380 (Ind.Ct.App.2006). In that opinion, we held that the trial court did not abuse its discretion by denying Carr’s motion to dismiss or by denying Carr’s motions for judgment on the evidence in Carr’s action against Joseph Pearman. We based this decision upon a holding that Pearman was a third-party beneficiary of Dave Foelber’s contingency agreement with Gerald Sisón. On rehearing, Carr argues that Pearman could not be a third-party beneficiary of Foelber’s agreement as to Carr because Carr had a separate contingency fee agreement with Gerald Sisón. Our review of the record reveals that Carr is correct. As such, we grant rehearing and vacate our original opinion. Nevertheless, we still affirm the trial court’s denial of Carr’s motion to dismiss and motions for judgment on the evidence.

*866 The relevant facts follow. In February 1996, Pearman’s nephew, Gerald Sisón, ran off the road in a Chrysler minivan, hit a tree, and was severely injured. Pearman, an attorney, believed that Gerald’s injuries were worse than they should have been and talked to Sison’s parents, Adonis and Myrna Sisón, about investigating the accident. Although Pearman explained to them that such actions were usually taken under a contingency fee agreement, Pear-man did not have the Sisons sign a contingency fee agreement.

Pearman told the Sisons to keep a diary of what happened in their family because of Gerald’s injury. Pearman also took photographs and videotapes of the van and Gerald’s injuries. Pearman bought the van from the Sisons’ insurer and put it in a storage facility. Pearman then videotaped the accident site, the tree, the road, and the path of the vehicle and interviewed two witnesses to the accident. Pearman also contacted the National Traffic and Safety Board, the U.S. Department of Transportation, and the Public Citizen Group seeking information on complaints or tests on the seat belts in Chrysler vans. Pearman located a seat belt expert but did not have the funds to hire the expert to inspect the van. Although he called large personal injury law firms looking for another attorney to take the case, none of the law firms were interested in the case. After discussing the case with the Sisons, Pearman and the Sisons decided to dispose .of the van to eliminate the storage expenses.

Two years later, the Sisons received recall letters from Chrysler asking that the van be brought in for an inspection of the seat belts. At this point, the Sisons hired Dave Foelber to assist in the case. Gerald signed a contingent fee agreement with Foelber, which also provided: “We also understand that Joseph Pearman has done a good deal of work in preparing this case and we will work with him and you in determining fair compensation for those efforts.” Plaintiffs Exhibit 36. Pearman met with Foelber, gave Foelber his file on the accident, and proposed an agreement whereby Pearman would act as co-counsel and receive half of any attorney fees received. Foelber rejected Pearman’s proposed agreement and proposed that Pear-man receive one-third of the attorney fees. Foelber and Pearman were unable to reach an agreement on fees, and Pearman did not continue as counsel.

Foelber filed a complaint against Daimler Chrysler in state court, but the case was removed to federal court. At that time, Foelber brought Carr into the case. At some point, Carr was appointed to be Gerald’s attorney through the probate court and apparently had a separate contingency fee agreement. 1

*867 Carr met with Pearman to discuss the case and Pearman’s attorney fees. Pear-man said that he wanted one-third of any attorney fees recovered. Carr and Pear-man did not reach an agreement regarding attorney fees for Pearman. After a trial, the federal case ended with a hung jury. The parties then settled the case for $2,000,000.00, out of which Foelber and Carr received $800,000.00 in attorney fees.

Pearman filed a complaint against Foel-ber and Carr. Pearman alleged that “[t]he work that Pearman performed on behalf of the Sisons was significant, and the case against the manufacturer of the Dodge Caravan could not have been successfully maintained without it” and that he was “entitled to the value of the work that he performed.” Appellant’s Appendix at 34. Pearman requested a judgment in the amount of $266,666.67, which was one-third of the attorney fees recovered by Foelber and Carr.

Carr filed a motion to dismiss, alleging that Pearman’s complaint failed to state a claim upon which relief could be granted. Specifically, Carr alleged that Pearman’s complaint failed because it did not allege that Carr promised to pay Pearman. Pearman responded by alleging, in part, that his complaint stated a valid claim for quantum meruit. The trial court denied *868 Carr’s motion to dismiss because it found “that the plaintiffs complaint is adequate to state a claim for the reasonable value of services rendered under a theory of quantum meruit” and that “such claim may be maintained against the defendants herein.” Appellant’s Appendix at 9-10 (citing Galanis v. Lyons & Truitt, 715 N.E.2d 858, 863 (Ind.1999)).

At the jury trial, Carr moved for judgment on the evidence after Pearman’s case in chief. In the motion, Carr argued that Pearman’s claim violated Rule 1.5(c) of the Ind. Rules of Professional Conduct by his failure to have a written contingency fee agreement, that the work done by Pear-man was not proportionate to the work done by Carr and Foelber, and that Pear-man’s other conduct violated the Rules of Professional Conduct. The trial court denied Carr’s motion for judgment on the evidence.

The jury returned a verdict against Carr and Foelber for Pearman in the amount of $100,000.00. Carr renewed his motion for judgment on the evidence at the close of the evidence, but the trial court denied the motion. Carr then filed a motion to correct error and a motion for judgment on the evidence, which the trial court also denied. This appeal relates only to the judgment against Carr because Foelber is not appealing the judgment against him. Carr appears to argue that the trial court abused its discretion by denying his motion to dismiss and by denying his motions for judgment on the evidence. 2

I.

The first issue is whether the trial court abused its discretion by denying Carr’s motion to dismiss. The standard of review of a trial court’s grant or denial of a motion to dismiss for failure to state a claim is de novo. Sims v. Beamer, 757 N.E.2d 1021, 1024 (Ind.Ct.App.2001). We do not defer to the trial court’s decision because deciding a motion to dismiss based upon failure to state a claim involves a pure question of law. Id.

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Cite This Page — Counsel Stack

Bluebook (online)
860 N.E.2d 863, 2007 Ind. App. LEXIS 180, 2007 WL 258317, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carr-v-pearman-indctapp-2007.