Eisenberg v. Swain

CourtDistrict of Columbia Court of Appeals
DecidedJuly 30, 2020
Docket19-CV-189
StatusPublished

This text of Eisenberg v. Swain (Eisenberg v. Swain) is published on Counsel Stack Legal Research, covering District of Columbia Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Eisenberg v. Swain, (D.C. 2020).

Opinion

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DISTRICT OF COLUMBIA COURT OF APPEALS

No. 19-CV-189

MICHAEL D.J. EISENBERG, APPELLANT,

V.

SHIRLEY SWAIN, APPELLEE.

Appeal from the Superior Court of the District of Columbia (CAB-6509-12)

(Hon. Florence Y. Pan, Trial Judge)

(Submitted April 23, 2020 Decided July 30, 2020)

Michael D.J. Eisenberg, pro se.

Shirley Swain, pro se.

Before FISHER, EASTERLY, and DEAHL, Associate Judges.

DEAHL, Associate Judge: Michael D.J. Eisenberg was awarded $7,800 in

unpaid attorney’s fees against his former client, Shirley Swain. After garnishing

$1,499 of Ms. Swain’s wages, Mr. Eisenberg learned that she had received a

discharge of debt through a Chapter 7 bankruptcy filing in the United States

Bankruptcy Court for the Western District of Virginia. The Superior Court ordered 2

Mr. Eisenberg to return the garnished wages to Ms. Swain until a decision was

reached on whether his judgment against her was included in the bankruptcy

discharge. Mr. Eisenberg did not comply. The Superior Court then issued an order

that included three rulings: (1) it ruled that Ms. Swain’s debt to Mr. Eisenberg had

been discharged, (2) it held Mr. Eisenberg in contempt of court for his failure to

return the garnished wages, and (3) it rejected Mr. Eisenberg’s request to add Ms.

Swain’s bankruptcy attorney as a defendant in the underlying breach of contract case

after Mr. Eisenberg alleged that Ms. Swain’s attorney had conspired with her to

defraud Mr. Eisenberg. Mr. Eisenberg now challenges each of those rulings. We

detect no error and affirm.

I.

In April 2011, Shirley Swain retained Michael D.J. Eisenberg as her counsel

in a matter against her employer, the Department of Veterans Affairs, before the

Equal Employment Opportunity Commission. Ms. Swain agreed to pay Mr.

Eisenberg a true retainer and a contingency fee in exchange for representation. In

April 2012, Ms. Swain entered into a confidential settlement agreement with the

Department of Veterans Affairs, pursuant to which they paid Mr. Eisenberg $48,000

and Ms. Swain $35,000. 3

After receiving his $48,000 payment from Ms. Swain’s employer, Mr.

Eisenberg maintained that he was still owed $7,800: $7,000 of Ms. Swain’s $35,000

share of the settlement (reflecting a 20% portion of her award in contingency fees,

in addition to the $48,000 he had already collected) along with an additional $800

in unpaid retainer. In July 2012, Mr. Eisenberg contacted Ms. Swain and requested

the outstanding payment. According to Mr. Eisenberg, Ms. Swain acknowledged

that she owed the money, but informed him that she had deposited the funds into her

own bank account. In August 2012, Ms. Swain notified Mr. Eisenberg that she did

not have the funds to pay him. Mr. Eisenberg promptly filed a lawsuit in Superior

Court alleging breach of contract and quantum meruit and requesting damages in the

amount of $7,800 plus interest. In response, Ms. Swain did not dispute that she owed

Mr. Eisenberg $7,800, though she claimed that she was under the initial impression

that all payments were satisfied by the $48,000 sum Mr. Eisenberg received from

the settlement and the $2,200 she had already paid in retainer fees. In addition, Ms.

Swain maintained that she was not able to pay Mr. Eisenberg $7,800 and that Mr.

Eisenberg had repeatedly refused to enter into a payment plan.

While Mr. Eisenberg’s motion for summary judgment was pending before the

trial court, Ms. Swain filed for Chapter 13 bankruptcy in the United States

Bankruptcy Court for the Western District of Virginia, and the Superior Court 4

proceedings were stayed. In June 2015, Ms. Swain’s Chapter 13 bankruptcy case

was dismissed, and the trial court proceedings continued. In September 2015, Judge

Dixon granted summary judgment for Mr. Eisenberg on the basis that Ms. Swain did

not contest that she owed the $7,800 and neither Mr. Eisenberg’s refusal to accept a

payment plan nor Ms. Swain’s inability to pay the full amount was sufficient to

create a material dispute of fact regarding the underlying contractual breach.

Mr. Eisenberg tried to collect the $7,800 judgment from Ms. Swain by hiring

a collection agency called Accounts Receivable but was unsuccessful. In April

2016, Mr. Eisenberg obtained a writ of attachment allowing him to garnish Ms.

Swain’s wages directly from her employer.

In July 2016, Ms. Swain initiated a second bankruptcy proceeding in the

United States Bankruptcy Court for the Western District of Virginia, this time under

Chapter 7. Ms. Swain included the debt she owed to Mr. Eisenberg in her filings

but listed the creditor as Accounts Receivable, Mr. Eisenberg’s collection company,

rather than Mr. Eisenberg himself. As a result, Mr. Eisenberg was not notified of

Ms. Swain’s bankruptcy filing until October 2016, when he received a letter from

Ms. Swain’s bankruptcy attorney asserting that Ms. Swain’s debts had been

discharged. By that time, Mr. Eisenberg had garnished a total of $1,499 in wages 5

from Ms. Swain. After receiving notification of the bankruptcy discharge, Mr.

Eisenberg filed a motion to stay garnishment in the Superior Court. In November

2016, the Superior Court granted Mr. Eisenberg’s motion and vacated the writ of

attachment. In an accompanying certificate issued by the clerk of the court, Mr.

Eisenberg was instructed to return all funds he had obtained through garnishment to

Ms. Swain.

In January 2017, Mr. Eisenberg filed a motion to stay the return of garnished

funds. He argued that although the court “ordered the moneys be returned to Ms.

Swain,” he had not exhausted his legal remedies in bankruptcy court and the $1,499

should be kept in his trust account “in order to assure that the moneys are protected

and the status quo is maintained.” Judge Florence Y. Pan denied Mr. Eisenberg’s

motion and directed him to comply with the previous order by relinquishing the

garnished funds. Specifically, Judge Pan found that Mr. Eisenberg was “not entitled

to garnishment at [the] time, and it would be unjust to allow [Mr. Eisenberg] to retain

[Ms. Swain]’s money pending the outcome of [Ms. Swain]’s bankruptcy matter.”

Mr. Eisenberg still refused to return the garnished funds to Ms. Swain. In

February 2018, Mr. Eisenberg brought a motion in bankruptcy court to reopen Ms.

Swain’s Chapter 7 case, arguing that his debt should not have been discharged 6

because he was not listed as a creditor and thus he was not notified of his opportunity

to dispute the discharge. The bankruptcy court concluded that the listing of

Accounts Receivable as a creditor was not sufficient to apprise Mr. Eisenberg of the

bankruptcy proceedings and that he was not provided with notice of his right to

contest the discharge of the debt. It nonetheless declined to reopen the bankruptcy

proceeding, finding that the Superior Court was better positioned to determine

whether the debt at issue had been discharged.

In accordance with the bankruptcy court’s order, Mr. Eisenberg filed a motion

in Superior Court to reopen the breach of contract case for a determination regarding

the discharge of the debt.

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