Denham Law Firm, PLLC v. David Anthony Nelson

207 So. 3d 670, 2017 Miss. App. LEXIS 4
CourtCourt of Appeals of Mississippi
DecidedJanuary 3, 2017
DocketNO. 2015-CA-00660-COA
StatusPublished
Cited by3 cases

This text of 207 So. 3d 670 (Denham Law Firm, PLLC v. David Anthony Nelson) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Denham Law Firm, PLLC v. David Anthony Nelson, 207 So. 3d 670, 2017 Miss. App. LEXIS 4 (Mich. Ct. App. 2017).

Opinions

CARLTON, J.,

FOR THE COURT:

¶ 1. The six wrongful-death beneficiaries and heirs-at-law of Kimberly Simmons settled a wrongful-death lawsuit and then filed the instant action to determine the fees and costs owed to Denham Law Firm PLLC under contingent-fee contracts signed by four of the beneficiaries.1 In their declaratory-judgment complaint filed in Jackson County Chancery Court, the beneficiaries sought a determination of the rights and money owed under the contingent-fee contracts. The beneficiaries claimed that the contracts’ attorney’s lien provision for the value of services actually performed at Denham Law’s normal hourly rates and for all the firm’s costs applied rather than the contracts’ contingency-fee provision.

¶ 2. The beneficiaries subsequently filed a motion for partial summary judgment. They argued that no genuine issue of material fact existed as to the applicability of the contracts’ attorney’s lien provision. They also asserted that no genuine issue of material fact existed as to the calculation of the attorney’s lien as defined by the terms of the contracts.

¶ 3. In granting partial summary judgment to the beneficiaries, the chancellor found that four of the six beneficiaries entered into contingent-fee contracts with Denham Law. The chancellor further found that the beneficiaries then terminated the firm’s representation. The chancellor also determined that the beneficiaries’ termination of Denham Law’s representation triggered the attorney’s lien provision in the contracts. In interpreting the contracts’ terms, the chancellor applied the attorney’s lien provision that provided reimbursement for actual services performed at normal hourly rates and for actual costs. The chancellor then concluded that Den-ham Law’s attorney’s fees amounted to $10,708.64 and that its costs amounted to $14,791.05. The chancellor denied Denham Law’s motion to reconsider or to alter or amend the grant of partial summary judgment, and Denham Law appeals to this Court.

¶ 4. On appeal, Denham Law raises the following issues: (1) whether the chancellor erred by finding that the beneficiaries had standing to sue Denham Law; (2) whether the chancellor erred by modifying the contract terms between Denham Law [672]*672and the beneficiaries; (3) whether the chancellor erred by not finding that the beneficiaries’ attorneys breached a fiduciary duty to Denham Law; and (4) whether the chancellor erred by not disqualifying the beneficiaries’ attorneys from representing the beneficiaries in this case.

¶ 5. Upon review of the chancellor’s grant of partial summary judgment, we find no evidence in the record to support the chancellor’s determination that the beneficiaries terminated Denham Law. Due to the lack of such evidence, we find the record reflects a dispute of material fact as to whether the contracts’ attorney’s lien provision applied.2 As a result, we reverse the chancellor’s judgment and remand the case for further proceedings consistent with this opinion.3

FACTS

¶ 6. On October 20, 2010, Simmons hired Denham Law to represent her in a medical-malpractice lawsuit. Earl Denham, Denham Law’s president and partner, stated in his affidavit that Simmons chose his firm due to Denham Law’s advertising and reputation. After Simmons died on April 21, 2011, four of her six beneficiaries entered into contingent-fee contracts with Denham Law to represent them in the derivative wrongful-death lawsuit. Each of the four contracts contained the following language:

I do hereby assign, convey, transfer, and deliver unto said [ajttomeys as their fees ... an undivided [fjorty [pjercent (40%) interest in and to all of my above[-]mentioned claim and all sums which may be recovered on my behalf. It is my said attorney’s sole discretion as to when suit shall be filed. This contract does not bind either party with regard to appeal, and in faet[,j the attorneys specifically have no responsibility to file any postjudgment pleadings. It is understood and agreed that[,j in addition to [a]ttorney[’s] fees, all costs and expenses of this litigation will be reimbursed to my [ajttomeys by me on my claim at the time of settlement. It is further understood and agreed that my [ajttomeys may act as co-counsel or associate with any other attorney at no extra cost to me at my [ajttomeys’ sole discretion.
I do hereby grant to Denham Law ... an attorney’s lien for the value of its services actually performed at its normal hourly rate and for all its costs, advances, and expenses of whatever nature in connection with my claim, including but not limited to [the] fees of associates and paralegals. Any proceeds that I receive from my litigation will be delivered in a check or draft payable to the firm of Denham Law ... and to me, jointly, to secure payment of the firm’s attorney’s lien. This paragraph shall survive any [673]*673termination of this contract for any reason.

(Emphasis added).

¶ 7. According to Denham’s affidavit opposing summary judgment, his firm utilized its own resources to obtain the expert opinions and the research needed to prepare the lawsuit. Denham also stated that it was his firm’s advertising and reputation that initially secured this case. The record reflects no dispute as to Denham’s state-, ment in his affidavit that his firm filed the lawsuit in Harrison County Circuit Court on August 22, 2012. The lawsuit was later removed to federal court on January 7, 2013. Following their termination around September 12, 2013, Kristopher Carter and Albert Jordan left Denham Law and began their own law firm. Thus, the parties agree that, at the time Denham Law filed the lawsuit on the beneficiaries’ behalf, Carter and Jordan both worked as attorneys for Denham Law. The parties also agree that Carter, as an employee of Denham Law, worked on both the medical-malpractice lawsuit and the subsequent wrongful-death case.

¶ 8. After terminating Carter and Jordan, Denham traveled to Ohio for heart surgery. In his affidavit, Denham asserted that, during this time, two or more of his employees “removed confidential firm information, including case file information and forms [that] had been developed with considerable expense to the firm over many years[,] and [the employees] delivered [the material] to Carter and Jordan, who continue to use [the information] in their own practice.” On appeal, Denham asserted during oral argument, as he did in his affidavit, that the removal of information from his office was done without his authorization or agreement. Denham further claims that Carter and Jordan removed the file for the present case from Denham Law without the agreement or consent of Denham Law. The beneficiaries submitted no evidence to contradict or dispute Denham’s affidavit.

¶ 9. After their departure from Denham Law, Carter and Jordan obtained a settlement offer in federal court on the beneficiaries’ wrongful-death action. The beneficiaries then placed the instant matter before the chancery court by filing their declaratory-judgment action on July 23, 2014, to determine the amount owed to Denham Law under the firm’s contingent-fee contracts with four of the beneficiaries. The declaratory-judgment complaint asserted that the four beneficiaries who initially engaged Denham Law had terminated the firm’s representation, and then all six of the beneficiaries had signed contracts with Carter and Jordan’s firm.

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Cite This Page — Counsel Stack

Bluebook (online)
207 So. 3d 670, 2017 Miss. App. LEXIS 4, Counsel Stack Legal Research, https://law.counselstack.com/opinion/denham-law-firm-pllc-v-david-anthony-nelson-missctapp-2017.