Fletcher v. Davis

130 Cal. Rptr. 2d 696, 106 Cal. App. 4th 398
CourtCalifornia Court of Appeal
DecidedMay 14, 2003
DocketB151534
StatusPublished
Cited by1 cases

This text of 130 Cal. Rptr. 2d 696 (Fletcher v. Davis) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fletcher v. Davis, 130 Cal. Rptr. 2d 696, 106 Cal. App. 4th 398 (Cal. Ct. App. 2003).

Opinion

130 Cal.Rptr.2d 696 (2003)
106 Cal.App.4th 398

Freddie FLETCHER, Plaintiff and Appellant,
v.
Carlyle DAVIS et al., Defendants and Respondents.

No. B151534.

Court of Appeal, Second District, Division Seven.

February 19, 2003.
Rehearing Denied March 20, 2003.
Review Granted May 14, 2003.

*697 Freddie Fletcher, in pro per, for Plaintiff and Appellant.

Kathryn M. Davis, San Francisco, for Defendant and Respondent Davis.

Gernsbacher and Associates and David L. Gernsbacher, Los Angeles, for Defendant and Respondent Gernsbacher.

Stocker & Lancaster and Jay F. Stocker for Defendant and Respondent Master Washer and Stamping Co.

Fischbach & Fischbach and Joseph S. Fischbach for Defendant and Respondent Fischbach.

Certified for Partial Publication.[*]

JOHNSON, J.

Plaintiff Freddie Fletcher, an attorney, seeks to recover legal fees and expenses owed by his former client, defendant Master Washer and Stamping Company. Fletcher's complaint alleges he has a contractual hen on a judgment obtained by Master Washer and that Master Washer and the third party defendants, Carlyle Davis, Arthur Gilbert, David Gernsbacher and Joseph Fischbach converted the proceeds of the judgment to their own use thereby depriving him of his rightful share. The trial court sustained the defendants' demurrers and dismissed the action. We affirm the judgment of dismissal as to Master Washer and reverse as to the other defendants.[1]

FACTS AND PROCEEDINGS BELOW

The relevant allegations of the complaint are as follows.

*698 Master Washer came to Fletcher for help when it was sued by Gilbert for breach of lease and Gilbert refused to release its manufacturing equipment.[2] The equipment was Master Washer's only asset and without it Master Washer could not conduct its business. Master Washer orally agreed to pay all costs plus Fletcher's fee of $200 per hour to defend it in the breach of lease suit and to get its equipment back. In lieu of a cash retainer, Master Washer agreed to give Fletcher a lien on any judgment or settlement in its litigation with Gilbert. If the judgment or settlement was insufficient Master Washer agreed to pay the difference from the income it earned once it resumed operations. Master Washer also promised Fletcher a "bonus" of a percentage of any judgment obtained against Gilbert if extensive litigation or trial was required and if the recovery in the case was "large."

Fletcher prepared and filed a complaint for conversion against Gilbert. The complaint also named Gilbert's attorney David Gernsbacher as a defendant based on his alleged role in preventing Master Washer from recovering its property from the leased premises. Prior to filing the complaint, Fletcher sent Master Washer a memorandum setting forth his understanding of the terms of their oral retainer agreement. Master Washer's president, William Scallon, represented to Fletcher he would sign a written retainer agreement, but never did so. The suits between Gilbert and Master Washer were consolidated.

While the Gilbert/Master Washer litigation was pending, Fletcher agreed to do additional, personal legal work on behalf of Master Washer's president, Scallon, and Scallon's mother. In each matter Scallon, on behalf of Master Washer, gave Fletcher a lien on Master Washer's prospective recovery against Gilbert in the conversion action. In Master Washer's conversion action against Gilbert and Gernsbacher, Gernsbacher obtained a summary judgment. In Gilbert's action against Master Washer for breach of lease, Gilbert and Master Washer entered into an agreement under which Master Washer admitted liability to Gilbert for breach of the lease and stipulated a judgment be entered against it and in favor of Gilbert for $85,000 in damages.[3] Master Washer's conversion action against Gilbert was tried to a jury and resulted in a mistrial. While Fletcher was in the process of preparing for a second trial Master Washer discharged him and replaced him with attorney Joseph Fischbach. Scallon also discharged Fletcher from the other legal matters he was handling on behalf of Scallon and his mother.

The second trial of Master Washer's conversion action against Gilbert resulted in a judgment in favor of Master Washer in the sum of $504,000 plus interest.

Eleven days after entry of judgment in favor of Master Washer in its conversion action against Gilbert, Davis filed suit against Gilbert, Master Washer and Scallon seeking to satisfy judgments he held against Scallon out of Master Washer's recovery in the conversion action. The trial court issued a temporary restraining order prohibiting Scallon's diversion of the proceeds from the Master Washer judgment against Gilbert. The following day Gilbert deposited in the Davis action the sum of $618,194.10 representing the amount of the Master Washer judgment plus accrued interest. A few weeks later *699 the parties to the Davis action and others claiming an interest in the Master Washer judgment stipulated to a disbursement of the judgment in specified amounts to Davis, Gilbert, Master Washer and Fischbach. The trial court approved the stipulation and ordered the Master Washer judgment disbursed accordingly. Under the stipulation all but approximately $8000 of the judgment proceeds were disbursed to Davis, Gilbert, Master Washer and Fischbach.

Fletcher alleges he did not learn about the Davis action or the stipulated disbursement of the Master Washer judgment until the day after the funds had been disbursed. Fletcher then filed this action against Master Washer and the third party defendants named above alleging causes of action for declaratory relief, conversion, account stated and money had and received. In his complaint he alleges the defendants were on notice of his lien at the time they stipulated to the disbursement of the proceeds from the Master Washer judgment.

The trial court sustained the demurrers of the third party defendants without leave to amend and dismissed the action as to them on the grounds Fletcher did not and could not plead facts showing the perfection of a lien on the Master Washer judgment or that the third parties had knowledge of such a hen. The court sustained the demurrer of Master Washer with leave to amend on the ground Fletcher had not pled he gave Master Washer timely written notice of the right to arbitrate an attorney-client fee dispute as required by Business and Professions Code section 6201.[4] When Fletcher failed to amend his complaint within the allotted time the trial court dismissed his action against Master Washer. Fletcher filed a timely notice of appeal.

DISCUSSION

I. THE TRIAL COURT PROPERLY DISMISSED THE COMPLAINT AS TO MASTER WASHER BECAUSE FLETCHER FAILED TO DEMONSTRATE COMPLIANCE WITH SECTION 6201.[**]

II. FLETCHER'S LIEN AGREEMENT DID NOT HAVE TO BE IN WRITING TO BE VALID AND ITS VALIDITY CAN BE LITIGATED IN HIS ACTION AGAINST THE THIRD PARTY DEFENDANTS.

Fletcher's causes of action against the third party defendants for declaratory relief, conversion and money had and received are dependent on his assertion he has a contractual lien on Master Washer's judgment against Gilbert. The trial court ruled Fletcher's complaint failed to allege facts supporting a Hen, Fletcher declined the opportunity to amend the complaint, and the court entered a judgment of dismissal as to the third party defendants.

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Cite This Page — Counsel Stack

Bluebook (online)
130 Cal. Rptr. 2d 696, 106 Cal. App. 4th 398, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fletcher-v-davis-calctapp-2003.