Dimeff v. Estate of Robert Merle Cowan

300 P.3d 1, 2013 WL 1849820, 2013 Alas. LEXIS 60
CourtAlaska Supreme Court
DecidedMay 3, 2013
Docket6779 S-14060
StatusPublished
Cited by13 cases

This text of 300 P.3d 1 (Dimeff v. Estate of Robert Merle Cowan) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dimeff v. Estate of Robert Merle Cowan, 300 P.3d 1, 2013 WL 1849820, 2013 Alas. LEXIS 60 (Ala. 2013).

Opinion

OPINION

WINFREE, Justice.

I. INTRODUCTION

This case involves a dispute over the disposition of a deceased Alaska attorney's interest in attorney's fees from his participation, through a joint venture, in the Exxon Valdez oil spill litigation. The attorney's sister, individually and on behalf of their mother's trust, asserted claims to the attorney's fees, and the attorney's estate opposed those claims. The parties settled the dispute by agreeing that the right to attorney's fees was an estate asset, and the settlement was approved by the Alaska superior court in the deceased attorney's probate proceedings. The attorney's fees were ultimately paid to the joint venture. Both the estate and the sister then sought the deceased attorney's interest in the joint venture's attorney's fees. The estate requested that the superior court enjoin the sister's claims as violations of the settlement agreement. Around this time, the joint venture deposited what it calculated as the deceased attorney's share of the joint venture's attorney's fees in a federal interpleader action in California.

The superior court ruled that under the settlement agreement, as between the estate, the sister, and the mother's trust, the estate had the right to the deceased attorney's share of the attorney's fees held by the joint venture. The superior court therefore en *3 joined the sister from pursuing claims to the deceased attorney's share of the joint venture's attorney's fees. The superior court later modified the injunction to allow the sister's participation in the federal inter-pleader action.

The sister appeals, arguing that the superior court exceeded its jurisdiction, issued its judgment without proper procedures, improperly interpreted the settlement agreement, prohibited her from pursuing contract claims against third parties, and entered a vague and ambiguous judgment. She also argues that the superior court's ruling was improperly expanded to allow her participation in the federal interpleader action. Because we conclude that the superior court acted within its jurisdiction, followed adequate procedures, did not prevent the sister from pursuing her individual contract claims against the joint venture, was not vague and ambiguous in its ruling, and did not expand the ruling's substance when modifying it, we affirm the superior court's orders and judgment.

II. FACTS AND PROCEEDINGS

A. Facts

On March 24, 1989, the oil tanker ExxON VaLpEz ran aground on Bligh Reef in Prince William Sound, spilling 11 million gallons of crude oil. Litigation followed-in what became known as the Exxon Valdez Oil Spill (EVOS) Litigation, over 50 law firms and 30,000 plaintiffs appeared before the United States District Court for the District of Alaska.

Several years later, compensatory damages were calculated at $507.5 million and punitive damages at $2.5 billion. 1 After appeals and remands, the United States Supreme Court resolved the case in 2008, ruling that punitive damages could not exceed $507.5 million. 2 Payments to individual plaintiffs and attorneys were made through a qualified settlement fund.

In 1989, in anticipation of the EVOS Litigation, Alaska attorneys William Bixby and Robert Cowan agreed to start a joint venture with California attorney Richard Gerry and his law firm, Casey Gerry. . Alaska attorney C. Michael Hough joined the joint venture six years later. Cowan's sister, Suzanne Dimeff, then known as Suzanne Etpison, was an attorney at Casey Gerry.

In 1993 the joint venturers signed a memorandum of understanding providing for the advancement and repayment of costs prior to division of the attorney's fees to be received by the joint venture. The memorandum established criteria for dividing fees between the joint venturers, but did not mention what would happen if a joint venturer died. The memorandum also referenced a separate agreement between Casey Gerry, Richard Gerry, and Dimeff as a matter solely between them.

The agreement between Casey Gerry, Richard Gerry, and Dimeff described Dimeff's salary and bonus opportunities as a Casey Gerry employee. It specified that the parties would arbitrate disputes arising over compensation. It also provided that the Casey Gerry firm would pay Richard Gerry's share of EVOS Litigation attorney's fees to his heirs if he died prior to the dissolution of the joint venture.

In late 2008 the joint venturers agreed to an amendment and restatement of the joint venture memorandum of understanding. Co-wan was ill, but represented by an attorney. The amendment and restatement detailed the percentage of the joint venture's EVOS Litigation attorney's fees that it would distribute to Cowan but did not discuss surviv-orship rights. The amendment was executed by Cowan's attorney in December 2008, after Cowan's death.

The surviving joint venturers then entered another agreement documenting the joint venture's continued existence without Cowan. The agreement noted that the joint venture's "only source of income [is] fees based on the contingency fee agreements with its clients in the [EVOS] Litigation." The agreement also provided that "[the Parties desire to document their ... agreement regarding a de *4 ceased Party's rights in the event of a dissociation of such Party from the Venture." The agreement specified that "the heirs, beneficiaries, assigns or personal representative . or ... trustee, as applicable" would be pald the EVOS Litigation attorney's fees that would have been due a joint venture member. The agreement was executed in April and May 2004. Cowan's mother, Oleta Co-wan, signed a separate document as "The Heir of Robert M. Cowan," providing, "[the undersigned has reviewed the Agreement among Firm, Gerry, Bixby and Hough to which this page is attached and agrees to the provisions therein."

B. Proceedings

1. Alaska probate

Cowan died in November 2008. In December, Daniel Aaronson, Cowan's stepson, filed in the Kenai superior court for appointment as the personal representative for Co-wan's estate and for informal probate of Co-wan's 2008 will. Dimeff appeared on Oleta's behalf and contested the 2008 will Aaron-son was appointed as personal representative, but resigned; Dale Dolifka later became the personal representative of Cowan's estate (Cowan Estate).

2. California state court action

In May 2005 Dimeff and Oleta filed a complaint in the California superior court in San Diego for declaratory relief against the Cowan Estate, the joint venturers, and Co-wan's stepchildren. Dimeff and Oleta sought the following declaration: "[AJny proceeds due to [Cowan] arising from the Joint Venture Memorandum of Understanding dated May 7, 1998 relating to attorneys fees and costs for services related to the [EVOS] litigation shall pass directly to [Cowan's] heir as a non-probate transfer and shall not become part of the [Cowan] probate estate. ..."

3. Settlement

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Cite This Page — Counsel Stack

Bluebook (online)
300 P.3d 1, 2013 WL 1849820, 2013 Alas. LEXIS 60, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dimeff-v-estate-of-robert-merle-cowan-alaska-2013.