Falanga v. KIRSCHNER & VENKER, PC

680 S.E.2d 419, 298 Ga. App. 672, 2009 Fulton County D. Rep. 2403, 2009 Ga. App. LEXIS 571
CourtCourt of Appeals of Georgia
DecidedMay 21, 2009
DocketA09A0711
StatusPublished
Cited by2 cases

This text of 680 S.E.2d 419 (Falanga v. KIRSCHNER & VENKER, PC) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Falanga v. KIRSCHNER & VENKER, PC, 680 S.E.2d 419, 298 Ga. App. 672, 2009 Fulton County D. Rep. 2403, 2009 Ga. App. LEXIS 571 (Ga. Ct. App. 2009).

Opinion

MlKELL, Judge.

This is the second appearance of this case before this Court. In Falanga v. Kirschner & Venker, PC. 1 {“Falanga 7”), attorney Andrew Kirschner and his firm, Kirschner & Venker, P.C. (“appellees”), sued attorneys Robert Falanga and Ronald Chalker (“appellants”) to recover attorney fees incurred in defending appellants in a disciplinary proceeding before the State Bar of Georgia. 2 As detailed in Falanga 7, appellees represented appellants in a civil rights lawsuit filed in district court against the State Bar of Georgia, which subsequently was appealed to the Eleventh Circuit Court of Appeals. Appellants filed a counterclaim, alleging fraudulent billing and legal malpractice stemming from appellees’ representation of appellants in the disciplinary proceeding and the federal lawsuit. The trial court granted summary judgment in favor of appellees on appellants’ counterclaim alleging fraudulent billing and legal malpractice, concluding that the counterclaim was barred by the four-year statute of limitation and the doctrine of judicial estoppel, but denied summary judgment to appellees on their claim for unpaid attorney fees. Appellants appealed the trial court’s order. We affirmed the grant of summary judgment on the legal malpractice claim and on the claim for fraudulent billing for legal work incurred in the district court case, finding that appellants should have and could have discovered the alleged billing fraud before November 12, 1996, when a fee award was approved in the federal suit, had they exercised reasonable diligence in reviewing the bills. However, we reversed the grant of summary judgment as to appellants’ claim for fraudulent billing in connection with the appeal to the Eleventh Circuit, finding that the trial court erred in extending the bar of the statute of limitation to those claims. 3

After the remittitur was entered, appellees filed a memorandum of issues to be tried on September 21, 2007. Appellants filed a memorandum on October 2, 2007. On October 9, 2007, appellants filed their third amended answer and counterclaim to include an affirmative defense of the statute of limitation. On that same date, appellants moved for judgment on the pleadings and/or partial summary judgment, alleging that the billing for work done in the district court is barred by the four-year statute of limitation. In that *673 motion, appellants asked the trial court to award summary judgment on all claims except those in the amount of $7,039.91 for the federal appellate work performed by appellees, the only bills for work performed within four years of the date this litigation was initiated, i.e., March 21, 2001. On October 29, 2007, appellees responded to appellants’ motion and moved to strike appellants’ third amended answer and counterclaim. Following a hearing on the pending motions, the trial court entered a final order and judgment, striking appellants’ third amended answer and counterclaim as untimely and entering a final judgment and award in favor of appellees in the amount of $156,906.35. 4 Appellants appeal this order and judgment. For the following reason, we affirm.

1. In their first enumeration of error, appellants contend that the trial court erred by sua sponte entering a final order and judgment in favor of appellees without any notice, hearing, or trial. Appellants also assert that, regardless of its nomenclature, a judgment in favor of appellees was erroneous because genuine issues of material fact remain (1) “on the questions of fraud in the appellate billing and defenses including statute of limitations in the trial court billings”; (2) on the amount of interest; (3) on the defenses of accord and satisfaction, lack of consideration, and waiver; and (4) on its right to request an accounting. Appellees contend that the trial court’s order was correct because the “law of the case rule” requires judgment in their favor. In their memorandum of issues to be tried, appellees argued that our opinion in Falanga I

dispositively determined the “terms of the contract for legal services entered into between the parties” and the availability of defense to that legal services contract to the [appellants]. Pursuant to the “law of the case rule[,]” the appellate decision now controls the action with regard to both the factual determinations held applicable by the Court of Appeals and the legal effect of those factual determinations. As a consequence of those appellate determinations, judgment in favor of [appellees] as an “account stated” for the entire amount of fees for work done in the “District Court” is required. Moreover, since this is a “commercial account[,]” interest accruing therein at the rate of 18% per annum, is mandated. This result occurs even though the trial court previously decided that a factual *674 question was remaining concerning the terms of the representation since that issue is now precluded by [Falanga I] and [appellants’] case is not based on “quantum meruit.” [Moreover, Falanga I precluded] any defense that is asserted to the claim that was based upon facts that were known to [appellants] from the time the bills were submitted through the expiration of the statute of [limitation]. Since [Falanga I\ found that the [appellants] received the bills for the work in the District Court within the limitation period, without complainti,] and participated in a fee application award based upon the hourly rate and the hours spent (which is subject to “judicial estoppel”) further complaint is not possible for any work in the District Court.

(Emphasis in original.) As for the billing for appellate work on the federal case, appellees’ memorandum points out that our opinion concluded that appellants’ defense of fraudulent billing applied only to 30.8 hours of appellate work. 5 Rather than litigate over that amount, however, appellees opted in their memorandum of issues to be tried to eliminate the 30.8 hours from their claim, leaving only $7,039.91 remaining for work done on the appeal. Appellees then pointed out that “[w]ith the elimination of the claim of 30.8 hours following [Falanga I,] there are no issues to be tried.” We agree with appellees.

Under OCGA § 9-11-60 (h), “any ruling by the Supreme Court or the Court of Appeals in a case shall be binding in all subsequent proceedings in that case in the lower court and in the Supreme Court or the Court of Appeals as the case may be.”

The “law of the case” rule, though formally abolished, still applies to rulings by one of our appellate courts in a particular case; such rulings are binding in all subsequent proceedings in the same matter. An exception exists where the evidentiary posture of the case changes in the trial court after the appellate court decision. The evidentiary posture of a case changes so as to bar application of the law of the case rule . . .

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Cite This Page — Counsel Stack

Bluebook (online)
680 S.E.2d 419, 298 Ga. App. 672, 2009 Fulton County D. Rep. 2403, 2009 Ga. App. LEXIS 571, Counsel Stack Legal Research, https://law.counselstack.com/opinion/falanga-v-kirschner-venker-pc-gactapp-2009.