Daniel J. Ross, P.C. v. American Telephone & Telegraph Communications Corp.

836 S.W.2d 952, 1992 Mo. App. LEXIS 1371
CourtMissouri Court of Appeals
DecidedAugust 18, 1992
DocketNo. WD 45589
StatusPublished
Cited by5 cases

This text of 836 S.W.2d 952 (Daniel J. Ross, P.C. v. American Telephone & Telegraph Communications Corp.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Daniel J. Ross, P.C. v. American Telephone & Telegraph Communications Corp., 836 S.W.2d 952, 1992 Mo. App. LEXIS 1371 (Mo. Ct. App. 1992).

Opinion

BERREY, Judge.

Appellant appeals from a summary judgment in favor of respondent on an action for enforcement of an attorney’s lien on monies paid by appellant to its former employee, Dwight E. Butts. The decision of the trial court is reversed.

On or about May 14, 1988, appellant discharged Butts from his position as telephone operator. On June 1, 1988, Butts filed a formal grievance, No. 88-4MOC-OS-226, protesting his discharge pursuant to the procedures provided in the collective bargaining agreement between American Telephone & Telegraph Communications Corporation (“AT & T”) and the Communication Workers of America, Local 6326 (“CWA”). CWA represented Butts in all grievance proceedings. Butts was dissatisfied with the offer made by AT & T and notified CWA that he was retaining an attorney, at which time the grievance proceeding was stayed.

On December 1, 1988, Butts filed a charge of discrimination with the Equal Employment Opportunity Commission (“EEOC”) and the Missouri Commission on Human Rights (“MCHR”). On July 24, 1989, the EEOC issued Butts a Notice of Right to Sue, which contains the following language:

This is your NOTICE OF RIGHT TO SUE. It is issued at your request. If you intend to sue the respondent(s) named in your charge, YOU MUST DO SO WITHIN NINETY (90) DAYS OF YOUR RECEIPT OF THIS NOTICE: OTHERWISE YOUR RIGHT TO SUE IS LOST.

On September 12, 1989, Butts retained respondent to represent him on his claims of discriminatory discharge against AT & T. Butts and respondent entered into a contingency contract wherein respondent was to receive one-third of any net recovery to Butts. On November 8, 1989, more that ninety days after the issuance of the Notice of Right to Sue, respondent caused Butts’ lawsuit against AT & T to be filed in [954]*954the United States District Court for the Western District of Missouri. On January 18, 1990, Butts’ first amended complaint was filed adding a pendent state claim for violation of the Missouri Unlawful Employment Practices Act.

Counsel for AT & T advised respondent that his client’s action had not been timely filed and, on June 25, 1990, the parties stipulated to a dismissal of the action without prejudice. Butts did not pay respondent for the action respondent took on Butts’ behalf. No lawsuit based on Butts’ termination has been filed in a Missouri court.

On September 13, 1990, the CWA, Butts and AT & T entered into a settlement agreement of the discharge grievance No. 88-4MOC-OS-226. Respondent was not notified of the settlement agreement until after it had been signed. Respondent Ross did not participate or appear in any of the grievance negotiations or proceedings. After respondent learned of the settlement, he filed suit against AT & T in an attempt to assert an attorney’s lien of $15,000 on the grievance settlement. AT & T filed a motion to dismiss respondent’s action or, in the alternative, for summary judgment. Respondent filed a motion for summary judgment, which was granted. The trial court issued no findings of fact or conclusions of law. This appeal followed.

In reviewing a ruling on a motion for a summary judgment, this court must scrutinize the record in the light most favorable to the party against whom the motion was filed and against whom judgment was granted and accord that party all reasonable inferences that may be drawn from the evidence. West v. Jacobs, 790 S.W.2d 475, 479 (Mo.App.1990). Great caution must be exercised in granting summary judgment because it is an extreme and drastic remedy that borders on denial of due process in that the opposing party is denied its day in court. Olson v. Auto Owners Ins. Co., 700 S.W.2d 882, 884 (Mo.App.1985). Summary judgment is appropriate if the prevailing party has shown that he is entitled thereto as a matter of law. Irwin v. Wal-Mart Stores, Inc., 813 S.W.2d 99, 101 (Mo.App.1991). Summary judgment may be granted only when the pleadings, depositions, admissions and affidavits on file show no genuine issue as to any material fact. Rule 74.04(c). Any fact in doubt must be a material one having legal probative force as to a controlling issue. First Nat’l Bank of St. Charles v. Chemical Products Inc., 637 S.W.2d 373, 375 (Mo.App.1982).

Appellant argues that the trial court erred in granting plaintiff’s motion for summary judgment because there was no cause of action to which an attorney’s lien could have attached pursuant to § 484.-1301. There are two statutes governing attorney’s liens in Missouri. Section 484.-130 restates the common law of Missouri giving an attorney a lien on his client’s cause of action from the commencement of that action. Section 484.140 allows an attorney who enters into a contingency contract with a client in a matter that may or may not proceed to litigation, to create a lien upon the proceeds of any settlement thereof if the attorney serves notice in writing upon any prospective defendant that he has such an agreement with his client, stating therein the interest he has in such claim or cause of action.

Although respondent appears to mingle the two statutes, he does admit that he did not serve written notice upon AT & T of his agreement with Butts as is required to establish a lien pursuant to § 484.140. Respondent relies upon the notice provided by filing Butts’ petition in the United States District Court to serve as notice to AT & T of his lien. The Supreme Court of Missouri has held, however, that written notice given to a prospective defendant was insufficient to create a lien enforceable against that prospective defendant under § 484.140 when the writing failed to provide the percentage amount agreed to between the attorney and his client. Passer v. U.S. Fidelity & Guaranty Co., 577 S.W.2d 639, 646 (Mo. banc 1979). If the writing in Passer, notifying opposing party of the existence of a contin[955]*955gency agreement but omitting the percentage of recovery the attorney was to receive, was insufficient to create a lien under § 484.140, certainly filing a cause of action in federal court, which filing does not contain any information regarding the contingency agreement, cannot create an enforceable lien for this respondent under § 484.140.

We, therefore, review whether respondent properly created an enforceable lien pursuant to § 484.130, which states as follows:

The compensation of an attorney or counselor for his services is governed by agreement, express or implied, which is not restrained by law. From the commencement of an action or the service of an answer containing a counterclaim, the attorney who appears for a party has a lien upon his client’s cause of action or counterclaim, which attaches to a verdict, report, decision or judgment in his client’s favor, and the proceeds thereof in whosesoever hands they may come; and cannot be affected by any settlement between the parties before or after judgment.

Butts voluntarily dismissed his cause of action without prejudice.

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836 S.W.2d 952, 1992 Mo. App. LEXIS 1371, Counsel Stack Legal Research, https://law.counselstack.com/opinion/daniel-j-ross-pc-v-american-telephone-telegraph-communications-corp-moctapp-1992.