Giannakoulopoulos v. Koukoumelis

164 Misc. 2d 541, 625 N.Y.S.2d 424, 1995 N.Y. Misc. LEXIS 119
CourtNew York Supreme Court
DecidedMarch 3, 1995
StatusPublished

This text of 164 Misc. 2d 541 (Giannakoulopoulos v. Koukoumelis) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Giannakoulopoulos v. Koukoumelis, 164 Misc. 2d 541, 625 N.Y.S.2d 424, 1995 N.Y. Misc. LEXIS 119 (N.Y. Super. Ct. 1995).

Opinion

OPINION OF THE COURT

David Goldstein, J.

This action has had a rather tortured history, dating back [542]*542to 1991, with defendants, over the past three years, pressing for a dismissal for plaintiffs’ failure to comply with routine disclosure and deposition requests, and plaintiffs’ attorneys seeking to be paid counsel fees which might have been due if a settlement offer had been approved, agreed to or accepted by the clients.

The current motion is to renew prior requests for dismissal for plaintiffs’ failure and/or inability to comply with any discovery requests. A hearing was directed by Justice Lisa on the factual issues raised on the motion and cross motion, namely, whether a settlement had been effected, i.e., whether the settlement offer was accepted by plaintiffs.

Such a hearing was necessary, especially since counsel had claimed, over two years ago, that "[e]ach plaintiff’s claim has been settled for the amount of $5,000.00 per plaintiff” but, "due to the inability to locate the plaintiffs * * * this settlement has not been finalized.” (Affirmation, Lawrence M. Simon, Esq., Sept. 1, 1992.) The clear suggestion by the foregoing is that the settlement had been approved, but the clients disappeared before necessary papers could be executed.

To the contrary, it now appears undisputed that the settlement offer was never communicated and neither plaintiff approved the settlement which had been tentatively agreed to by counsel. Notwithstanding repeated requests to adduce some proof on the issue, plaintiffs’ attorneys refused to proceed with any direct evidence or testimony, claiming that the underlying circumstances permitted them to effectuate a settlement, notwithstanding the absence of any client consent thereto.

In support of their positions, plaintiffs’ attorneys rely upon Gonzalez v Diaz (91 Misc 2d 629), a Civil Court action which had been tentatively settled by counsel for $1,450, but plaintiffs disappeared before approving or rejecting the settlement offer. Citing the fact that the limitations period had long expired, a circumstance which, in the view of the Gonzalez court, not only would deprive plaintiffs’ attorneys of a fee for services performed but would also unjustly enrich defendant, who had the use of the money for over five years, the court permitted counsel to give effect to the settlement, notwithstanding the absence of his clients and their failure to assent to the proposed settlement. In doing so, Judge Fuchs observed (91 Misc 2d, at 632): "Should the plaintiffs or either of them now return to claim their due, no disappointment with the amount of the recovery could justify legal pursuit either of [543]*543defendant or of plaintiffs’ counsel. The only grievance they could allege is that something less than the recovery they would have wanted was salvaged in their absence from an otherwise total and inevitable loss.”

The reasoning and result in Gonzalez (supra) has been criticized, and rightly so. In Cord v Cutola (121 Misc 2d 300), Justice Lockman opined that the conclusion there was "remarkable,” observing (121 Misc 2d, at 302): "We have not yet arrived at a system of justice which exists only to compensate lawyers for punishing wrongs without regard to whether the clients benefit or even display an interest in the litigation.”

I agree. What the court overlooked in Gonzalez (supra) is that lawsuits are matters to be resolved, in terms of disposition and approval thereof, by the litigants, not their attorneys. An action is for the benefit of the parties, not counsel. The latter are mere agents and it is the client, not the attorney, who, in the final analysis, determines whether an action is to be settled or should proceed to trial.

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Bluebook (online)
164 Misc. 2d 541, 625 N.Y.S.2d 424, 1995 N.Y. Misc. LEXIS 119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/giannakoulopoulos-v-koukoumelis-nysupct-1995.