Gannett v. Shulman

908 N.E.2d 850, 74 Mass. App. Ct. 606, 2009 Mass. App. LEXIS 916
CourtMassachusetts Appeals Court
DecidedJuly 6, 2009
DocketNo. 06-P-1920
StatusPublished
Cited by6 cases

This text of 908 N.E.2d 850 (Gannett v. Shulman) is published on Counsel Stack Legal Research, covering Massachusetts Appeals Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gannett v. Shulman, 908 N.E.2d 850, 74 Mass. App. Ct. 606, 2009 Mass. App. LEXIS 916 (Mass. Ct. App. 2009).

Opinion

Perretta, J.

This action, brought by Attorney Richard W. Gannett against Attorney Jody C. Shulman, arises out of a dispute concerning Shulman’s disbursement of funds to a client each attorney represented in different proceedings. Shulman represented Jane Compagnone Erickson (the client) in a divorce action brought by her husband, Ronald P. Compagnone (the husband), and Gannett represented her in bankruptcy proceedings which the husband had initiated. Gannett argues that Shul-man’s disbursement of settlement funds received by the client from the husband in the divorce action, without regard for any interest he, Gannett, claims to have had in those funds (for payment of his legal services rendered to the client in the husband’s bankruptcy proceeding) was an intentional interference with his advantageous relationship with the client and deceitful. Concluding that Shulman’s act of disbursing the funds to the client was appropriate, we affirm the judge’s grant of summary judgment to Shulman and the denial of Gannett’s motion to alter or amend the judgment. See Mass.R.Civ.P. 56(b) & 59(e), 365 Mass. 824, 828 (1974).

1. The undisputed facts. We relate the circumstances of the controversy between Gannett and Shulman based upon Gannett’s complaint and the undisputed facts as they appeared in the materials before the judge ruling on Shulman’s motion for summary judgment and as included in the record before us, i.e., Shulman’s admissions to Gannett’s requests made pursuant to Mass.R.Civ.P. 36, 365 Mass. 795 (1975), the Ghent’s affidavit, and the relevant exhibits.2 We do not consider the transcript of Shulman’s deposition as there is nothing before us to show that it was acknowledged by Shulman to be a true and accurate record of her testimony or certified by the shorthand reporter.

On or about May 14, 1999, the client entered into a fee agreement with Gannett regarding the husband’s divorce complaint as well as his voluntary petition for bankruptcy filed pursuant to Chapter 7 of the Bankruptcy Code. Common to both the husband’s action for divorce and his voluntary petition for bankruptcy were the Ghent’s allegations that the husband had fraudulently conveyed certain marital assets to third parties, including [608]*608his father, and had misappropriated and squandered the proceeds of a home equity line of credit.

Notwithstanding her fee agreement with Gannett and without protest from him, the client thereafter retained Shulman to represent her in the divorce action while instructing Gannett to continue to represent her in the bankruptcy proceedings. In the course of their respective actions on behalf of their mutual client, Gannett discussed the bankruptcy proceedings with Shulman, and Shul-man discussed the divorce action with him.

On September 21, 1999, the United States Bankruptcy Court allowed the husband’s motion for summary judgment on all the client’s claims but one, her claim based upon the alleged misappropriation of the proceeds of a second mortgage. While the client’s remaining claim was pending in the bankruptcy court, Shulman was proceeding on behalf of the client in the divorce action. In the course of her representation of the client in that proceeding, Shulman prepared a separation agreement which was to retain its independent legal significance. Exhibit D to the agreement, captioned “CHAPTER 208, SECTION 34 DISTRIBUTION,” reads in full:

“1. In consideration of the sum of $17,500 being paid to [the Wife], the Wife hereby releases the Husband from any and all claims under Chapter 208, Section 34, including any claim for alleged fraudulent transfer of property. . . . Said sum to be paid forthwith.”

There were two additional and relevant provisions. Section III of the agreement, entitled “MUTUAL RELEASE,” provides:

“[T]he Husband and Wife each hereby releases and forever discharges the other from any and all actions, suits, debts, claims, demands, and obligations whatsoever, both in law and in equity which either of them has ever had, now has, or may hereafter have against the other, it being the intention of the parties that henceforth there shall exist as between them only such rights and obligations as are specifically provided for in this Agreement.”

Exhibit F, entitled “ADDITIONAL TERMS,” states in pertinent part that the “[w]ife agrees to dismiss with prejudice” her claim [609]*609against the husband in his pending action in the bankruptcy court. The client and the husband signed the separation agreement on July 5, 2000.

Either before or quickly thereafter, Shulman received a check from the husband made payable to her and the client in the amount of $17,500. Although we cannot ascertain from the record the exact dates upon which Shulman received and endorsed the check, it appears from the materials before us that the check was written by the husband on July 3, 2000, that is, two days before the separation agreement was signed, and that Shulman’s endorsement preceded that of the client.

On July 28, 2000, about three weeks after the client and the husband signed the separation agreement and Shulman received the husband’s check, the client, acting pro se, and the husband, represented by counsel, signed and filed a stipulation of dismissal in the bankruptcy court. The stipulation provides that the “parties . . . hereby stipulate that this action, and all related claims, may be dismissed, with prejudice.”

2. Shulman’s rule 36 denials and explanations. While Shul-man admitted that she and Gannett had discussed discovery matters, she denied that those discussions were at her request. She also denied that she had requested information from the husband’s father, bank or agents, or his employees and attorneys concerning his dealings with them. Although Shulman acknowledged that she and Gannett had discussed the bankruptcy and divorce litigation in a general fashion, she denied that they discussed legal strategy at her request or that she benefited from those discussions.

In responding to Gannett’s requests for admissions relating to the legal fees owed by the client to Gannett, Shulman acknowledged that she told Gannett that she was aware that the client owed him legal fees for his services to her in the bankruptcy proceeding. However, she denied being aware that the client owed him substantial fees, that is, an amount somewhere between $10,000 to $40,000.

Shulman acknowledged that at the client’s request, she had negotiated the agreement without informing Gannett, who was not the client’s attorney of record in the divorce action, about the negotiations, terms, and their signing of the agreement. She [610]*610went on to answer that she had done so in accordance with the client’s request and without any intent to deceive Gannett. Sometime after the agreement had been signed and Gannett inquired about the status of the divorce action, Shulman informed him that it had been settled.

Turning to Gannett’s requests for admissions concerning the check sent by the husband and made payable to her and the client, Shulman denied that she had the opportunity to include Gannett as a payee on the settlement check or that she had negotiated or had deposited the check in her IOLTA account. Shul-man’s denials concerning her handling of the check received from the husband and made payable to her and the client are supported by the client’s affidavit, which was before the judge on Shulman’s motion for summary judgment.

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Cite This Page — Counsel Stack

Bluebook (online)
908 N.E.2d 850, 74 Mass. App. Ct. 606, 2009 Mass. App. LEXIS 916, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gannett-v-shulman-massappct-2009.