Goldman, Skeen & Wadler, P.A. v. Cooper, Beckman & Tuerk, L.L.P.

712 A.2d 1, 122 Md. App. 29
CourtCourt of Special Appeals of Maryland
DecidedMay 21, 1998
Docket1038, September Term, 1997
StatusPublished
Cited by13 cases

This text of 712 A.2d 1 (Goldman, Skeen & Wadler, P.A. v. Cooper, Beckman & Tuerk, L.L.P.) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goldman, Skeen & Wadler, P.A. v. Cooper, Beckman & Tuerk, L.L.P., 712 A.2d 1, 122 Md. App. 29 (Md. Ct. App. 1998).

Opinion

THIEME, Judge.

Appellees/cross-appellants Cooper, Beckman & Tuerk, L.L.P. (CBT) and Levy, Phillips & Konigsberg, R.L.L.P. (LPK) filed a six-count complaint against appellant/cross-ap *35 pellee Goldman, Skeen & Wadler, P.A. (GSW), as well as Harry Goldman, Jr., pertaining to a series of fee-sharing agreements among the parties. The jury returned a special verdict finding three of four such contracts to remain in effect and concluding that each of the three law firms was liable for breach. The jury awarded CBT and LPK one dollar each and similarly awarded one dollar to GSW. The court entered one judgment on the verdict for the breach of contract claims and a separate judgment declaring the three contracts to remain in effect and awarding a total of $5,691,599.60 to CBT and LPK, a sum “representing [their] contractual share of the total fees.” GSW filed a motion to alter or amend the declaratory judgment, a motion for recusal, and a conditional motion for a new trial on the continuing enforceability of the three contracts. CBT and LPK then filed a motion for summary judgment, which also requested judgment notwithstanding the verdict. The court amended the declaratory judgment to indicate additionally that CBT and LPK owed $90,367.69 to GSW, even though no party had requested such an amendment. All other motions were denied. This appeal ensued.

On appeal, GSW presents the following questions, which we have recast:

1. Whether the circuit court improperly excluded expert testimony and other evidence on the Maryland Lawyers’ Rules of Professional Conduct and predecessor ethical rules.
2. Whether an Order compelling a law firm to remit to other lawyers seventy-five percent of attorney’s fees obtained in on-going cases improperly compels the firm to breach its ethical obligations to clients.
3. Whether the circuit court erred by permitting appellees to introduce evidence of a prior contract dispute between GSW and another attorney.
4. Whether the circuit court erred by refusing to instruct the jury on principles of contract termination.
*36 5. Whether the circuit court erred by refusing to instruct the jury on the Statute of Limitations.
6. Whether the circuit court improperly excluded file memoranda of disputed conversations.
7. Whether the trial court’s declaratory judgment awarding money damages violated GSW’s constitutional right to trial by jury or constituted an improper attempt at additur or reformation of a jury verdict.
8. Whether the trial judge erred by failing to recuse himself from post-trial proceedings.

CBT and LPK cross-appeal on one initial issue: “Whether it was error to award GSW a remedy when GSW explicitly disclaimed any interest therein.” Should this court find error in the declaratory judgment’s monetary awards to CBT and LPK, then cross-appellants present two further questions:

1. Did the circuit court err by dismissing cross-appellants’ claims for conversion and punitive damages?
2. Did the circuit court err by denying cross-appellants’ motion for summary judgment and entering the jury’s award of nominal damages?

For reasons set forth below, we will affirm the breach of contract judgment, but we must reverse the declaratory judgment’s monetary awards against GSW and vacate and remand the declaratory judgment in all other respects.

FACTS

In the mid-1970’s, Mr. Goldman represented several clients who belonged to Local 24 of the International Union of Marine and Shipbuilding Workers of America (IUMSWA) and were employed at the Key Highway Shipyard of Bethlehem Steel in Baltimore City. Mr. Goldman was a partner in Goldman & Skeen, P.A., the predecessor in interest to GSW, but for ease we shall refer to the two firms collectively as GSW. When a study of the Key Highway shipyard workers was conducted in the late 1970’s, it revealed a high rate of asbestos disease. The result, as it pertains to this case, was that Local 24 *37 retained GSW to pursue what were estimated to be 150 asbestos-related personal injury claims.

Mr. Goldman knew, however, that his firm would not be able to handle the complexity and expense of prosecuting all of these cases on its own, so even prior to receiving the offer to represent the Local 24/Key Highway plaintiffs, Mr. Goldman approached another attorney, Gerald H. Cooper, of CBT. The two entered into the first of their fee-sharing agreements, memorialized in a signed document of 18 September 1979. Under the terms of the agreement, the two firms would share equally the work, the expenses, and the fees generated by the Local 24/Key Highway asbestos litigation. The agreement covered all asbestos litigation, other “toxic tort work, such as lead poisoning,” and all work that would derive from such representation, with certain specific exceptions.

Within a few months, the first of many disputes arose between the two parties. CBT believed that the representation called for still more resources than the two parties could provide and demanded that additional counsel be brought in. GSW initially opposed such a move, but eventually both GSW and CBT signed a second fee-sharing agreement with Mr. Stanley J. Levy of Kreindler & Kreindler. (The latter firm is the predecessor to the LPK firm, and for ease we will refer to them collectively as LPK.) Under this second agreement, dated 18 April 1980, LPK would handle “the major burden” of the Local 24/Key Highway asbestos representation and advance most of the costs in return for fifty percent of all fees generated therefrom. CBT and GSW would share equally the other half of the fees. The agreement also allocated among the parties responsibility for certain specific tasks and expenses, but it was silent as to any derivative representation.

Over a year later, another pair of fee-sharing agreements was executed. One of these agreements was memorialized in a document dated 4 November 1981 and signed by only GSW and CBT. The agreement pertained to their joint representation of a different set of asbestos litigation clients who were members of Local 33 of the IUMSWA, employed at Bethle *38 hem Steel’s Sparrows Point Shipyard. We refer to this agreement as “Local 33/Sparrows Point.” GSW and CBT agreed to share equally the fees derived from the representation “after payment of the net fee of other litigation counsel.”

The fourth and final fee-sharing agreement is memorialized in a document dated 5 November 1981 and signed by GSW, CBT, and one Bernard G. Link, Esq. Mr. Link was general counsel to union Local 31 from the Maryland Shipbuilding and Drydock Company. The agreement called for joint representation of Local 31 members in asbestos litigation, with LPK acting as lead counsel in return for fifty percent of the fees. Mr. Link would receive twenty-five percent of all fees, and CBT and GSW would collectively receive the remaining twenty-five percent, as local counsel.

Mr. Goldman’s relations with the other parties were strained from the outset.

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Cite This Page — Counsel Stack

Bluebook (online)
712 A.2d 1, 122 Md. App. 29, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goldman-skeen-wadler-pa-v-cooper-beckman-tuerk-llp-mdctspecapp-1998.