Edelman v. Poster

72 A.D.3d 182, 894 N.Y.S.2d 398
CourtAppellate Division of the Supreme Court of the State of New York
DecidedFebruary 4, 2010
StatusPublished
Cited by16 cases

This text of 72 A.D.3d 182 (Edelman v. Poster) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edelman v. Poster, 72 A.D.3d 182, 894 N.Y.S.2d 398 (N.Y. Ct. App. 2010).

Opinion

OPINION OF THE COURT

Andrias, J.

Pursuant to three separate written retainer agreements, the plaintiff-appellant, an attorney, represented the defendant-respondent in a matrimonial action and related appeals. In 2007, he commenced this action against plaintiff to recover, under theories of breach of contract and account stated, the sum of $155,934.05, plus interest, representing fees allegedly due for services rendered under the retainer agreements. Plaintiff also sought to recover the attorney’s fees incurred in the prosecution of this action.

Plaintiff moved for summary judgment and defendant cross-moved to dismiss the complaint. Characterizing the issue before it as “one of pure contract interpretation,” the Supreme Court dismissed the complaint (2009 NY Slip Op 30537[U], *5), finding that plaintiff breached the unambiguous retainer agreements by failing to give defendant 30 days’ notice of her right to fee arbitration prior to commencing suit. We now consider whether in performing its analysis, the Supreme Court erred when it held that the retainer agreements may be construed without reference to the matrimonial rules governing retainers, fee disputes and arbitration in domestic relations matters that were in effect at the time the retainer agreements were executed.

The rules pertaining to retainers, fee disputes and arbitration in domestic relations matters, found at 22 NYCRR part 1400 (the matrimonial rules), were “promulgated to address abuses in the practice of matrimonial law and to protect the public” (Julien v Machson, 245 AD2d 122 [1997]). At the time the parties executed the retainer agreements in this case, March 10, 1997, August 17, 1999 and July 6, 2001, respectively, arbitration was governed by 22 NYCRR part 136, which provided for binding arbitration of fee disputes at the client’s option (22 NYCRR 136.2), where the amount in dispute did not exceed $100,000 [184]*184(22 NYCRR 136.4 [a]). An attorney’s “utter failure to abide by these rules” precludes the attorney from collecting fees, even if the services were already rendered (Julien v Machson, supra; see also Mulcahy v Mulcahy, 285 AD2d 587 [2001]). Where there has been “substantial compliance” with the matrimonial rules, an attorney will be allowed to recover the fees owed for services rendered, but not yet paid for. (See Flanagan v Flanagan, 267 AD2d 80, 81 [1999]; Markard v Markard, 263 AD2d 470 [1999].)

In granting defendant’s motion for summary judgment dismissing the complaint on the ground that the plaintiff attorney failed to give defendant notice of her right to arbitrate prior to commencing suit, the Supreme Court found that defendant was entitled to such notice “regardless of the existence of 22 NYCRR 136, et seq, and regardless of plaintiffs unexpressed intention that the arbitration be governed by that section” because the unambiguous “writing contains no reference at all to 22 NYCRR 136, et seq, no reference to a 30 day period to respond to a notice of a fee dispute [szc], and no mention of a jurisdictional limit to disputes that defendant may arbitrate” (2009 NY Slip Op 30537[U] at *6). The court further stated that even if the agreement was ambiguous, it must be construed against plaintiff as drafter.

Because we do not believe that the parties’ retainer agreements may be interpreted without reference to the matrimonial rules in effect at the time they were entered, which governed the attorney-client relationship in domestic relations matters with respect to fee disputes and arbitration, we reverse the grant of summary judgment in defendant’s favor and reinstate the complaint. A contrary result would do violence to the very rules we endeavor to enforce and penalize an attorney who complied in all respects with the matrimonial rules in effect at the time each retainer agreement was drafted and executed.

Under New York law, an enforceable contract requires mutual assent to its essential terms and conditions. If an agreement is not reasonably certain in its material terms, there can be no legally enforceable contract (see Matter of 166 Mamaroneck Ave. Corp. v 151 E. Post Rd. Corp., 78 NY2d 88, 91 [1991]; Mellen & Jayne, Inc. v AIM Promotions, Inc., 33 AD3d 676 [2006]). “[A] court will not order a party to submit to arbitration absent evidence of that party’s unequivocal intent to arbitrate the relevant dispute and unless the dispute falls clearly within that class of claims which the parties agreed to refer to arbitration” (Primavera Labs. v Avon Prods., 297 AD2d 505, 505 [2002] [internal quotation marks and citations omitted]).

[185]*185In the case before us, by agreement dated February 28, 1997 and executed March 10, 1997, plaintiff was retained by defendant to prosecute an action for divorce in Poster v Poster. The agreement provided in pertinent part:

“While I seek to avoid any disputes concerning the payment of our fee, in the event such a dispute does arise, you have the right, at your election, to seek arbitration, the results of which are binding on both parties. I shall advise you in writing by certified mail that you have 30 days from receipt of such notice in which to elect to resolve the dispute by arbitration, and I shall enclose a copy of the arbitration rules and a form for requesting arbitration. If no action is pending and if you do not timely enforce your rights to enter into fee arbitration, I may commence legal proceedings against you to recover any unpaid fee” (emphasis added).

By agreement dated May 10, 1999 and executed August 17, 1999, and by agreement dated July 3, 2001 and executed July 6, 2001, plaintiff was also retained by defendant to represent her in appeals related to the divorce action. Each of these retainers included the same arbitration clause.

Attached to each of the three retainer agreements was a copy of a “Statement of Client’s Rights and Responsibilities” which informed the client of what he or she is “entitled to by law or by custom.” Consistent with the retainer agreement, the statement provides, among other things, that “[i]n the event of a fee dispute, you have the right to seek arbitration, the results of which are binding. Your attorney will provide you with the necessary information regarding arbitration in the event of a fee dispute, or upon your request” (emphasis added).

While these retainer agreements evidence a clear intent to give defendant the right to binding arbitration of fee disputes at her option, to be governed by arbitration rules to be provided by plaintiff, material terms are missing in that they do not specify what those rules are or identify the forum for the arbitration. However, there is no requirement that an agreement to arbitrate be encompassed in “a single comprehensive document” (5 NY Jur 2d, Arbitration and Award § 18; see also American States Ins. Co. v Sorrell, 258 AD2d 782, 783 [1999]), and where it is clear from the language of an agreement that the parties intended to be bound and there exists an objective method for supplying a missing term, the court should endeavor to hold the [186]*186parties to their bargain (166 Mamaroneck Ave., 78 NY2d at 91; see also Cobble Hill Nursing Home v Henry & Warren Corp., 74 NY2d 475, 483 [1989], cert denied

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Cite This Page — Counsel Stack

Bluebook (online)
72 A.D.3d 182, 894 N.Y.S.2d 398, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edelman-v-poster-nyappdiv-2010.