DeLapaz v. SELECTBUILD CONST., INC.

917 N.E.2d 93, 334 Ill. Dec. 496, 394 Ill. App. 3d 969, 2009 Ill. App. LEXIS 954
CourtAppellate Court of Illinois
DecidedSeptember 30, 2009
Docket1-08-2072
StatusPublished
Cited by5 cases

This text of 917 N.E.2d 93 (DeLapaz v. SELECTBUILD CONST., INC.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DeLapaz v. SELECTBUILD CONST., INC., 917 N.E.2d 93, 334 Ill. Dec. 496, 394 Ill. App. 3d 969, 2009 Ill. App. LEXIS 954 (Ill. Ct. App. 2009).

Opinion

917 N.E.2d 93 (2009)
334 Ill.Dec. 496

Rafael DeLAPAZ and Magdalena DeLapaz, Plaintiffs,
v.
SELECTBUILD CONSTRUCTION, INC., d/b/a RCI Construction, Inc., an Illinois Corporation, and Orleans Home Builders, Inc., f/d/b/a Realen Homes, LP, Defendants.
(SelectBuild Construction, Inc., d/b/a RCI Construction, Inc., an Illinois Corporation, Third-Party Plaintiff. Dason Masonry, Inc., Third-Party Defendant).
(Touhy & Touhy, Ltd., Petitioner-Appellee; Stephan Zouras, LLP, Respondent-Appellant).

No. 1-08-2072.

Appellate Court of Illinois, First District, Fourth Division.

September 30, 2009.

*94 Stephan Zouras LLP, Esposito & Staubus, Burr Ridge, IL (Bradley K. Staubus, of counsel), for Appellant.

Touhy & Touhy, Ltd., Touhy, Touhy, Buehler & Williams, LLP, Chicago, IL (Timothy J. Touhy, Robert E. Williams, of counsel), for Appellee.

Justice GALLAGHER delivered the opinion of the court:

The law firm of Stephan Zouras, LLP appeals the trial court's adjudication of attorney fees between Stephan Zouras as successor attorneys and Touhy & Touhy, Ltd. as discharged attorneys. Stephan Zouras claims that the trial court erred in awarding to Touhy & Touhy the contingent fee less the fees earned by Stephan Zouras under a quantum meruit theory. Stephan Zouras maintains that the trial court erred in adopting the comparison/apportionment approach to apportion the attorney fees. Stephan Zouras also claims that Touhy & Touhy failed to provide sufficient evidence to support the award of attorney fees under a quantum meruit theory. For the reasons that follow, we affirm.

A negligence claim is the underlying action in this appeal On September 22, 2004, Rafael DeLapaz was working on a construction site as a bricklayer when he fell through a hole falling approximately 14 feet onto a concrete floor. While James Zouras (Zouras) worked at Touhy & Touhy, a referring attorney told Rafael to contact Zouras regarding the negligence cause of action. The referring attorney was to receive 33 1/3% of the fees. Rafael and his wife Magdalena (collectively referred to herein as DeLapaz) entered into a contingency agreement with Touhy & Touhy in February 2006 to commence an action to recover for the injuries Rafael suffered from the September 22, 2004 fall. Zouras was the only attorney at Touhy & Touhy who communicated with DeLapaz. Touhy & Touhy did not maintain time records for personal injury cases, which *95 would recover attorney fees on a contingency basis.

Touhy & Touhy filed the construction negligence case on DeLapaz's behalf in February 2006. During the time Zouras worked at Touhy & Touhy and on DeLapaz's case, he met with the client, prepared the complaint, appeared at status hearings, modified discovery answers and exchanged correspondence with defense counsel and plaintiffs. Touhy & Touhy terminated Zouras and Ryan Stephan as employees of the firm on May 21, 2007. Zouras and Stephan then formed the law firm of Stephan Zouras LLP, and on June 14, 2007, that firm substituted as attorneys for DeLapaz and filed its appearance in the case. The underlying case settled for $275,000 on August 23, 2007, resulting in a dismissal of the case with prejudice.

On September 11, 2007, Touhy & Touhy filed a motion to adjudicate attorneys' liens and escrow funds, conduct discovery and set for evidentiary hearing. Stephan Zouras filed a verified response on September 26, 2007. In an order drafted by Stephan Zouras and approved by Touhy & Touhy, the parties agreed to certain disbursements from the settlement amount leaving a remaining balance of $82,500. Stephan Zouras filed a supplemental response on November 2, 2007. The trial court entered an order on November 16, 2007, finding that Touhy & Touhy "is entitled to its original contract fee of one-third of the settlement, less the amount of fees [Stephan Zouras] is entitled to on a quantum meruit basis." Zouras filed an affidavit dated November 16, 2007, stating that since May 21, 2007, he performed the vast majority of the work in the underlying case. Zouras also attached an exhibit to the affidavit that itemized the time expended by Stephan Zouras working on the case and reflected a $300 hourly rate for the work performed by Zouras. Timothy Touhy filed an affidavit dated December 11, 2007, stating in part that approximately five hours reflected in Stephan Zouras's invoice of services rendered in the DeLapaz case were duplicate of services performed while Zouras was employed at Touhy & Touhy. Zouras filed a responsive affidavit dated December 24, 2007, refuting the duplication of hours. The trial court entered an order dated January 9, 2008, allocating $79,208.83 to Touhy & Touhy with instructions to disburse $26,402.78 to the referring attorney.[1] The trial court also allocated $3,291.67 to Stephan Zouras with instructions to disburse $1,097.22 to the referring attorney. Stephan Zouras's award was based upon 26.25 hours at $300 per hour less deductions for duplicate work. Stephan Zouras timely appealed.[2]

This appeal involves the review of the trial court's allocation of attorney fees between a discharged and successive law firm. A trial court's award of attorney fees is reviewed adopting an abuse of discretion standard. In re Marriage of Bussey, 108 Ill.2d 286, 299, 91 Ill.Dec. 594, 483 N.E.2d 1229, 1235 (1985). A trial court abuses its discretion if "no reasonable person *96 would take the view adopted by the trial court." In re Marriage of Heroy, 385 Ill.App.3d 640, 651, 324 Ill.Dec. 310, 895 N.E.2d 1025, 1037 (2008).

Stephan Zouras first contends on appeal that the trial court erroneously applied the comparison/apportionment standard to apportion attorney fees between Stephan Zouras and Touhy & Touhy. Stephan Zouras claims that the trial court erred by comparing the amount of work performed by Touhy & Touhy and Stephan Zouras and finding that Touhy & Touhy performed most of the work prior to settlement, and that the trial court then erroneously ruled that Touhy & Touhy was entitled to the contingent fee. Stephan Zouras maintains that the proper standard that should have been used to compute the attorney fees was to award Stephan Zouras the contract contingent fee and require Touhy & Touhy as discharged attorneys to prove its fees on a quantum meruit basis instead of applying the comparison/apportionment approach. Stephan Zouras also claims that no offer for settlement was made prior to Touhy & Touhy being discharged, that Touhy & Touhy did not perform much work on the file and that any tasks performed by Touhy & Touhy were ministerial in nature. Stephan Zouras further points to the trial court's recognition that the case was settled and dismissed before much of the legal work was performed. Stephan Zouras maintains that the trial court adopted the incorrect legal standard of comparison/apportionment to allocate the attorney fees resulting in the erroneous award of the contingent fee to Touhy & Touhy and quantum meruit fees to Stephan Zouras.

Touhy & Touhy responds that because no written contract exists between Stephan Zouras and DeLapaz, Stephan Zouras is only entitled to fees based upon a quantum meruit theory.

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Bluebook (online)
917 N.E.2d 93, 334 Ill. Dec. 496, 394 Ill. App. 3d 969, 2009 Ill. App. LEXIS 954, Counsel Stack Legal Research, https://law.counselstack.com/opinion/delapaz-v-selectbuild-const-inc-illappct-2009.