Finkelstein v. Kins

124 A.D.2d 92, 511 N.Y.S.2d 285, 1987 N.Y. App. Div. LEXIS 40580
CourtAppellate Division of the Supreme Court of the State of New York
DecidedFebruary 10, 1987
StatusPublished
Cited by10 cases

This text of 124 A.D.2d 92 (Finkelstein v. Kins) 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
Finkelstein v. Kins, 124 A.D.2d 92, 511 N.Y.S.2d 285, 1987 N.Y. App. Div. LEXIS 40580 (N.Y. Ct. App. 1987).

Opinions

OPINION OF THE COURT

Fein, J. P.

The issue in this action by a firm of attorneys against a client is whether the attorneys are entitled to recover in quantum meruit an amount in excess of the bill rendered and in excess of the agreed upon fee because defendant client has failed to pay plaintiffs’ bills as rendered and claims them to be excessive.

[93]*93This is not a case in which plaintiffs’ services were terminated. They completed their services and there was a subsequent dispute as to the amount of the bills rendered. No authority has been found, and none is cited, in support of the proposition that when an attorney has completed his services and has rendered a bill, he may sue in quantum meruit for an amount in excess of the bill. Nor is there authority for the doctrine that an agreed upon fee may be increased because the client has delayed payment.

The authorities relied upon by plaintiffs in this action, and in the dissent, are all cases in which the attorney’s services were terminated prior to completion. In those cases it was held that although the retainer agreement may be relevant in determining the fee to which the attorney is entitled, it is not dispositive. The client’s right to terminate the attorney’s services is well settled, but if he does so he must pay for the reasonable value of the attorney’s services up to the time of termination, even though the fee may exceed that called for in the agreement.

Thus, in Matter of Tillman (259 NY 133, 135), where the agreed upon compensation was to be 3% of the proceeds and the attorney’s services were terminated before the litigation was completed and a substitution of attorneys was directed by the court, the principle is stated as follows: "The client is entitled to cancel his contract of retainer but such an agreement cannot be partially abrogated. Either it wholly stands or totally falls. After cancellation, its terms no longer serve to establish the sole standard for the attorney’s compensation. Together with other elements they may, however, be taken into consideration as a guide for ascertaining quantum meruit. (Matter of Krooks, 257 N. Y. 329.) The value of one attorney’s services is not measured by the result attained by another. This one did not contract for his contingent compensation on the hypothesis of success or failure by some other member of the bar.”

Similarly, in Matter of Montgomery (272 NY 323), cited in the dissent, an attorney for the executrix of a will was discharged after he had performed about five sixths of his contracted services. It was held that the attorney was entitled to recover in quantum meruit and not on the basis of the contract price. The court stated (at pp 326-327):

"Thus far it has been decided that the discharge of the attorney canceled and annulled the contract and that the [94]*94contract having been canceled, it could not limit the amount of the recovery although it might be considered in fixing the amount of the reasonable value of the services rendered, the theory being that the cancellation could not be a half-way cancellation.
" 'It wholly stands or totally fails [sic]. ’ (Matter of Tillman, 259 N. Y. 133; Matter of Krooks, 257 N. Y. 329.)
"Under that theory, the contract price does not constitute a limitation on the amount of an attorney’s recovery, although its effect may be to enhance the amount the client may be compelled to pay and in a certain sense penalizes the client for exercising a privilege given by law to discharge an attorney at will regardless of cause.”

Similar is Matter of Goldin (104 AD2d 890), also relied upon in the dissent, where the attorney was retained by an estate upon an agreed fee of $10,000. He was discharged without cause and a new attorney was substituted to complete the administration of the estate. The court ruled (at p 891): "We now reverse and remit the matter to the Surrogate’s Court for a new hearing to determine the fair and reasonable value of appellant’s services. While it is a fundamental right of a client to discharge his attorney without cause at any time, the discharged attorney is ordinarily entitled to recover in quantum meruit for the fair and reasonable value of his services up to the point of his discharge (see Demov, Morris, Levine & Shein v Glantz, 53 NY2d 553; Matter of Montgomery, 272 NY 323). Importantly, when the discharged attorney seeks recovery in quantum meruit, he is not limited by the terms of his original retainer agreement (Matter of Montgomery, supra). Indeed, at bar, the only evidence presented at the original hearing — by appellant and his expert witness — regarding the value of the services performed, indicated that the value of those services was well in excess of the amount set in the original agreement.” To the same effect is Matter of Krooks (257 NY 329), a contingent fee case, where it was held that the discharge of the attorney before the services were completed, permitted recovery in quantum meruit.

In accord is McAvoy v Schramme (238 App Div 225, affd 263 NY 548), also a contingent fee case, where this court stated (at p 228): "It is well established that a client may discharge his attorney at any time for any reason he deems sufficient. In such circumstances the attorney is relegated to an action for the reasonable value of his services, unless he has fully [95]*95performed his contract. In the event of full performance prior to discharge, however, the attorney may stand upon his contract and the measure of his damages is the agreed value of his services.” This court has so ruled in Kronish, Lieb, Shainswit, Weiner & Hellman v Howard Stores Corp. (44 AD2d 813, 814): "And further, contrary to the claim of defendant, where a lawyer is discharged voluntarily by a client, the lawyer may sue in quantum meruit. He is not limited to the amount he would have been entitled to under a retainer. (MacAvoy [sic] v. Schramme, 238 App. Div. 225, affd. 263 N. Y. 548.) When services of the attorney are incomplete at the time of discharge, the lawyer is relegated, as a matter of law, to a suit in quantum meruit. (MacAvoy [sic] v. Schramme, supra.) The record on this appeal discloses that there is, at the very least, a question of fact as to when or if the plaintiff law firm was discharged by defendant’s house counsel and the status and worth of the firm’s services. Even if the services, for which the plaintiff was retained, had been completed prior to discharge, the plaintiff would still be entitled to sue in quantum meruit. (MacAvoy [sic] v. Schramme, supra; see, also, the majority opinion by Hubbs, J., in Matter of Montgomery, 272 N. Y. 323, 327, erroneously cited by Special Term in support of its opinion.)” To the same effect is Zimmerman v Kallimopoulou (56 Misc 2d 828).

In this case it is undisputed that the attorneys were not discharged. After the client had been billed, she raised questions as to the amount of the bill and made limited payments on account. Under these circumstances, there is no authority which supports the recovery of a fee in excess of the amount billed. Attorneys have no greater rights than those who render other services or sell other products. Absent express agreement, there is no right to increase the bill because of nonpayment.

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Cite This Page — Counsel Stack

Bluebook (online)
124 A.D.2d 92, 511 N.Y.S.2d 285, 1987 N.Y. App. Div. LEXIS 40580, Counsel Stack Legal Research, https://law.counselstack.com/opinion/finkelstein-v-kins-nyappdiv-1987.