Danzig v. Danzig

904 P.2d 312, 79 Wash. App. 612
CourtCourt of Appeals of Washington
DecidedOctober 31, 1995
Docket14057-1-III, 14118-7-III
StatusPublished
Cited by14 cases

This text of 904 P.2d 312 (Danzig v. Danzig) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Danzig v. Danzig, 904 P.2d 312, 79 Wash. App. 612 (Wash. Ct. App. 1995).

Opinions

Munson, J.

Steven Danzig appeals the dismissal of his contract claim against Jeffrey Danzig, Jeffrey’s wife, and Jeffrey’s law firm on a CR 12(b)(6) motion. Jeffrey, together with his wife and law firm, cross-appeal the trial court’s order that he pay $89,000 of a legal fee into the registry of the court pending the investigation of the propriety of the fee. Jeffrey contends the court did not have jurisdiction to enter the order and that the order amounts to an unconstitutional taking of property. Jeffrey also argues Steven does not have standing to respond to his cross appeal. We hold Steven did state a claim upon which relief could be granted and reverse the dismissal of his claim. We hold thé trial court lacked jurisdiction to order Jeffrey to pay the fee into the court registry and reverse the trial court’s order.

In his complaint, Steven states he is not a lawyer and that Jeffrey is a lawyer, licensed in the State of Washington. Steven alleges Jeffrey approached him in January 1992 with a business proposition: for every client Steven steered into Jeffrey’s office, Steven would receive one-third of any fee received. Steven states he accepted the offer and directed clients to Jeffrey. In each case, Jeffrey directed him to submit a billing statement making it appear as though he was billing for his time at an hourly rate. The total amount of the bill never deviated ap[616]*616preciably from one-third of the total fee. In each case, he was paid by Jeffrey.1

Steven maintains he directed a client to Jeffrey in March 1993; Jeffrey breached the agreement and refused to pay him. Steven states the one-third of the fee due him is about $89,000.

The trial court found the alleged contract was illegal and unenforceable under Washington law and dismissed Steven’s claim with prejudice. Even though it dismissed Steven’s claim, the trial court was concerned with the propriety of Jeffrey’s fee and ordered him to pay $89,000 into the court registry pending an investigation of the fee. Jeffrey moved for reconsideration, but the motion was denied. The trial court did, however, stay its order compelling Jeffrey to pay, pending this appeal.

The Appeal

Steven contends the trial court erred in granting Jeffrey’s motion to dismiss under CR 12(b)(6). Under CR 12(b)(6), a defendant may move to dismiss where the plaintiff’s pleadings do not state a claim upon which relief may be granted. Dismissal should be granted only where "it appears, beyond doubt, that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.” Berge v. Gorton, 88 Wn.2d 756, 759, 567 P.2d 187 (1977). Facts alleged in the complaint must be accepted as true for purposes of the motion. Berge, 88 Wn.2d at 759. This court reviews de novo a dismissal under CR 12(b)(6). Cutler v. Phillips Petroleum Co., 124 Wn.2d 749, 755, 881 P.2d 216 (1994), cert. denied, 115 S. Ct. 2634 (1995).

As a general rule, contracts which are illegal or against public policy will not be enforced by the courts. See Golberg v. Sanglier, 96 Wn.2d 874, 883, 639 P.2d 1347, 647 P.2d 489 (1982). That rule, however, is subject to an [617]*617exception where a court determines the parties are not in pari delicto, that is, they are not equally culpable. In those cases, a court may choose to enforce a contract despite the fact it is illegal or against public policy. As the court noted in Golberg, "in pari delicto” is only a label, and the decision to enforce a contract contrary to public policy requires more than just a weighing of fault and requires consideration of public policy. Golberg, 96 Wn.2d at 883. As the court stated in Tri-Q, Inc. v. Sta-Hi Corp., 63 Cal. 2d 199, 219, 404 P.2d 486, 498, 45 Cal. Rptr. 878 (1965):

Where, by applying the [general] rule, the public cannot be protected because the transaction has been completed, where no serious moral turpitude is involved, where the defendant is the one guilty of the greatest moral fault, and where to apply the rule will be to permit the defendant to be unjustly enriched at the expense of the plaintiff, the rule should not be applied.

Under the alleged contract, Steven was to serve as a "runner” who solicited clients for Jeffrey. Such a contract would be illegal, as to the lawyer, under RCW 9.12.010, Washington’s barratry statute. In part, the statute provides that "every person, being an attorney or counselor at law, who shall personally, or through the agency of another, solicit employment as such attorney, in any suit pending or prospective . . . shall be guilty of a misdemeanor . . . .” RCW 9.12.010. The alleged agreement is also in violation of RPC 7.2(c) which states a "lawyer shall not give anything of value to a person for recommending the lawyer’s services . . . .” Agreements which violate the Rules of Professional Conduct are contrary to public policy. See Belli v. Shaw, 98 Wn.2d 569, 578, 657 P.2d 315 (1983); Walsh v. Brousseau, 62 Wn. App. 739, 815 P.2d 828 (1991).

Although Jeffrey argues RCW 9.12.010 criminalizes Steven’s conduct, we would disagree. He cites to cases from other jurisdictions in which courts have refused to provide a remedy for breach of a contract to procure clients for an attorney. See Van Bergh v. Simons, 286 F.2d [618]*618325 (2d Cir. 1961); Landi v. Arkules, 172 Ariz. 126, 835 P.2d 458 (1992), review denied, September 15, 1992; Dugas v. Summers, 339 So. 2d 934 (La. Ct. App. 1976), writ denied, 341 So. 2d 1132 (1977); American Civil Liberties Union v. Miller, 803 S.W.2d 592, cert. denied, 500 U.S. 943 (Mo. 1991) ; Plumlee v. Paddock, 832 S.W.2d 757 (Tex. App. 1992) . The statutes at issue in those cases criminalized the conduct of the runner as well as that of the attorney. In contrast, the relevant language of RCW 9.12.010 clearly addresses only the conduct of attorneys. Likewise, the Rules of Professional Conduct apply only to those admitted to practice law in the State of Washington. In both cases, the prohibitions apply only to Jeffrey’s conduct, not Steven’s.

Jeffrey argues that Steven’s admission in his complaint that he submitted billing statements falsely detailing hours worked is evidence of moral fault.

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

Related

James L. Pettis, III v. John Karsten Simrall
Mississippi Supreme Court, 2023
LK Operating, LLC v. Collection Grp., LLC
Washington Supreme Court, 2014
LK Operating, LLC v. Collection Group, LLC
331 P.3d 1147 (Washington Supreme Court, 2014)
LK Operating, LLC v. Collection Group, LLC
279 P.3d 448 (Court of Appeals of Washington, 2012)
Kinney v. Cook
208 P.3d 1 (Court of Appeals of Washington, 2009)
CORPORATE DISSOLUTION OF OCEAN SHORES PARK, INC. v. Rawson-Sweet
134 P.3d 1188 (Court of Appeals of Washington, 2006)
Jordan v. Rawson-Sweet
132 Wash. App. 903 (Court of Appeals of Washington, 2006)
Hope v. Larry's Markets
29 P.3d 1268 (Court of Appeals of Washington, 2001)
Sanction of Knott v. State
731 So. 2d 573 (Mississippi Supreme Court, 1999)
Sanford Knott v. State of Mississippi
Mississippi Supreme Court, 1997
Mueller v. Miller
917 P.2d 604 (Court of Appeals of Washington, 1996)
Danzig v. Danzig
904 P.2d 312 (Court of Appeals of Washington, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
904 P.2d 312, 79 Wash. App. 612, Counsel Stack Legal Research, https://law.counselstack.com/opinion/danzig-v-danzig-washctapp-1995.