Durie v. State

751 So. 2d 685, 2000 WL 85269
CourtDistrict Court of Appeal of Florida
DecidedJanuary 28, 2000
Docket5D99-265
StatusPublished
Cited by5 cases

This text of 751 So. 2d 685 (Durie v. State) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Durie v. State, 751 So. 2d 685, 2000 WL 85269 (Fla. Ct. App. 2000).

Opinion

751 So.2d 685 (2000)

Jack F. DURIE, Appellant,
v.
STATE of Florida, Appellee.

No. 5D99-265.

District Court of Appeal of Florida, Fifth District.

January 28, 2000.
Rehearing Denied March 13, 2000.

*686 Terrence E. Kehoe of Law Office of Terrence E. Kehoe, Orlando, for Appellant.

Robert A. Butterworth, Attorney General, Tallahassee, and Kristen L. Davenport, Assistant Attorney General, Daytona Beach, for Appellee.

HARRIS, J.

The Bar's ethics, or at least those ethics as interpreted by a significant number of lawyers, were put on trial in this case and the jury found them wanting.[1] The jury *687 determined that Durie's perceived obligation to his client to obtain the greatest recovery for his injuries does not legitimize the fraudulent manipulation of a settlement, or the misrepresentation of that settlement to Medicaid, in order to defeat Medicaid's legitimate claim for reimbursement of medical expenses. The jury convicted Durie of grand theft. These are the facts:

Kee and Solomon were at a topless bar when they got into an argument with Barber. When the bar closed, the argument continued outside in the bar's parking lot, where Barber stabbed Kee in his spinal cord and in the back of his head. Barber then dragged Kee to a nearby field where he continued his assault and left Kee for dead. Barber then attacked Solomon and stabbed him in the right forearm causing substantial and permanent injuries.

Kee's medical expenses were covered by Medicaid, which filed a lien in the amount of some $40,000 against any recovery that Kee might receive against a third party liable for his injury. Solomon's medical expenses were covered by private insurance and no claim for reimbursement was asserted.

Both Kee and Solomon retained Durie to represent them in their claim against the bar for damages. Medicaid advised Durie of its claim.[2] When it appeared that the only asset of the bar was a $100,000 insurance policy, Durie decided to settle for that amount.[3] Because of the Medicaid lien against Kee, Durie recommended to his clients that the settlement agreement be structured so that 99.5% of the proceeds "be in the name of" Solomon and that Medicaid be advised that Kee was to receive only $500. When asked whether his clients had agreed prior to settlement as to how the money would be actually divided, Durie responded:

No. I'll explain that ... I knew before I could, everything could be fine tuned and finalized because Mr. Solomon indicated a willingness to share part of a valid recovery. I had sent a notice to Medicaid, which I did, saying $500. That's my intention, not to do anything about making a further recommendation to Mr. Solomon as to what to do with a settlement until after that ... stage [getting Medicaid's acceptance] passed.

Hence, it is clear that when Durie represented to Medicaid that Kee would receive only $500 from the settlement, he was *688 aware that the "settlement" would not be made on the 99.5% / .5% basis. He deferred the formal agreement establishing the actual disbursement, and the disbursement itself, until after he had dealt with Medicaid in an effort to obtain its release based on his misleading representation. Durie apparently believed that by delaying the agreement for a greater allocation of the settlement to Kee, he could avoid his obligation under the law.[4]

Durie contends that he had no obligation to Medicaid either to reveal the fact that he also represented another client claiming against the common fund or that an adjustment to Kee's allocation would be forthcoming.[5] The jury rejected this notion of a lawyer's obligation.

Durie's position was that by settling in the manner that he did, Solomon became the "owner" of all but $500 of the settlement and hence any amount given to Kee in excess of that came from Solomon's generosity and not from a third-party liable for Kee's injuries. The contention that Durie actually believed that this strawman settlement which incorporated contracted generosity was an ethical and legal way of taking Medicaid's money and giving it to Kee, whom he considered a more deserving recipient,[6] has no support in the record. Such contention is inconsistent with his delaying an agreement so providing until after misleading Medicaid about his settlement. It is also inconsistent with the formal agreement subsequently entered into requiring an 80% / 20% split rather than an agreement limiting Kee to $500 plus what the open-ended generosity of Solomon might produce, and with the initial disbursement made by him to Kee in the form of a check in the amount of $5,000 in "advance of payment." This was ten times the amount Durie claims was then due Kee. The formal agreement acknowledged that the insurance company for the bar had paid $100,000 to settle with both Kee and Solomon and that plaintiffs could allocate the settlement as they might determine. The agreement also acknowledged the problem in settling created by the Medicaid lien in that there would be nothing left for Mr. Kee if he benefitted from the settlement. Therefore, the agreement provided that in order for the settlement to be properly "managed so as to obtain a recovery for anybody is to allow approximately 99% of the settlement to be made in the name of Mark Solomon. Our agreement is that Mr. Solomon would share his settlement proceeds on a five-to-one split or an eighty percent / twenty percent split, eighty percent to Mr. Kee, or his assigns, twenty percent to Mr. Solomon."[7] (Emphasis added).

Even with this agreement providing a settlement to Kee of some $80,000 and even though Durie knew of the legal assignment to Medicaid of $40,000 of Kee's share of the settlement, Durie disbursed all the funds (except costs and attorney's fees) to Kee. Durie justifies this on two bases. First, as indicated above, the settlement *689 money going to Kee did not come from a third-party but rather from Solomon's largess.[8] The jury did not accept this contention. Second, Durie urges that because he believed he had the obligation to his client to achieve the best result for him, and because he believed this settlement structure was a legal way of achieving this desired result,[9] even if he was wrong, his conduct did not constitute a criminal act. The trial judge did not consider this a legal defense to grand theft nor did the jury. Nor do we.

Finally, consistent with his claim of immunity based on good faith, Durie urges that the trial court erred in not giving his requested instruction that "[a]n attorney who acts in good faith in an honest belief that his advice and acts are well-founded and in the best interest of his client is not answerable for mere error of judgment or for a mistake in a point of law which has not been settled by the Court of last resort in his state and on which differences of opinion may be entertained by well-informed lawyers." He relies on Rodriguez v. State, 396 So.2d 798 (Fla. 3d DCA 1981). In Rodriguez, the defendant, the manager of a hotel, kept certain rental payments claiming he was entitled to them *690 pursuant to an agreement with the owner. The owner gave a different version of the arrangement, under which the manager was entitled to the rental payments. The court held that the jury should have been instructed: "Where it clearly appears that the taking of property was consistent with honest conduct,

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Cite This Page — Counsel Stack

Bluebook (online)
751 So. 2d 685, 2000 WL 85269, Counsel Stack Legal Research, https://law.counselstack.com/opinion/durie-v-state-fladistctapp-2000.