Goldsberry v. Hohn

583 P.2d 1360, 120 Ariz. 40, 1978 Ariz. App. LEXIS 572
CourtCourt of Appeals of Arizona
DecidedJune 8, 1978
Docket1 CA-CIV 3629
StatusPublished
Cited by12 cases

This text of 583 P.2d 1360 (Goldsberry v. Hohn) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goldsberry v. Hohn, 583 P.2d 1360, 120 Ariz. 40, 1978 Ariz. App. LEXIS 572 (Ark. Ct. App. 1978).

Opinion

OPINION

WREN, Judge.

This appeal concerns an application filed pursuant to A.R.S. § 12-1511 1 to conform an arbitration award of the State Bar of Arizona on a fee dispute between appellant, Fred Goldsberry, as the client, and appellee, Edward L. Hohn, as the attorney. The superior court denied confirmation and we affirm.

“A party seeking confirmation of an award shall file and serve an application therefor in the same manner in which complaints are filed and served in civil actions. Upon the expiration of twenty days from service of the application, which shall be made upon the party against whom the award has been made, the court shall enter judgment upon the award unless opposition is made in accordance with § 12-1512.”

BACKGROUND

On February 22, 1972 Goldsberry was seriously injured in a Santa Fe railroad accident. Without legal assistance, he subsequently negotiated with Santa Fe in an attempt to settle his claim for personal injuries under the Federal Employee’s Liability Act. An offer by Santa Fe to settle for the sum of $15,000.00 was rejected and he thereafter retained Hohn on February 26, 1973 to represent him in future negotiations and in any litigation which might result from the prosecution of the claim. A written retainer agreement calling for payment of a one-third contingent fee was prepared by Hohn and executed by Goldsberry.

Hohn ultimately filed a complaint against Santa Fe in Maricopa County Superior Court in January 1974, and periodically thereafter Goldsberry made various advances to him for expenses. Eventually, however, Goldsberry became dissatisfied with Hohn and, after rejecting a settlement offer of $25,000.00 which Hohn had recommended that he accept, he discharged Hohn on July 4, 1974.

Hohn, however, continued negotiations with Santa Fe. Whether the retainer agreement remained in effect during this period was disputed by the parties. In any event, Hohn later accepted the $25,000.00 offer and mailed settlement documents and a joint pay settlement draft to an attorney in Winslow, Arizona, where Goldsberry resided, with a letter instructing Goldsberry to go to the office of the Winslow attorney *42 and execute the documents. Goldsberry followed these instructions with the understanding that any attorney’s fees to be paid Hohn would be arbitrated by the State Bar Association.

A petition for arbitration was later submitted by Goldsberry to the State Bar. Following acceptance of the matter for arbitration the State Bar forwarded the petition to Hohn on September 17,1974, together with a copy of the Rules of the Committee of the State Bar on Arbitration of Fee Disputes, and an Agreement to Arbitrate for execution by Hohn. Instead of responding to the petitioner, however, Hohn filed his own petition for arbitration, to which he attached exhibits. A copy of the Hohn petition was then forwarded to Goldsberry who signed and returned it. The matter was then set for arbitration on Hohn’s petition.

Ultimately, three attorneys were appointed by the State Bar Association to serve as arbitrators of the dispute. A hearing was held on November 22, 1974; testimony was taken, and documentary evidence including letters, expenses, claims, cancelled checks and the disputed retainer agreement were submitted into evidence. Hohn also presented his entire file relative to the underlying claim against Santa Fe.

At the hearing it was agreed by the parties that the arbitrators could examine the Maricopa County Superior Court file on the litigation, and that one of the arbitrators would interview a representative of Santa Fe to determine whether Goldsberry had in fact been offered a firm sum in settlement of his claim prior to the retention of Hohn as his attorney. Following the hearing, Hohn submitted further evidence of the time allegedly spent in representing his client, which was to be added to the time slips already before the arbitrators. Golds-berry disputed the additional evidence and more letters on the issue were submitted by each party.

As agreed, one of the arbitrators examined the superior court proceeding and another, by telephone, interviewed Kent Tur-ley, an attorney for Sante Fe. During this interview Turley confirmed the prior offer of $15,000.00 made by Santa Fe directly to Goldsberry. However, the conversation continued and the two men also discussed the matter of Hohn’s representation generally.

The arbitration again convened, more evidence was introduced and ultimately an award in the amount of $3,500.00 was agreed upon by the arbitrators on January 16, 1975. Hohn was dissatisfied and presented to the Arbitration Board an “Application to Modify Award and/or Motion for Rehearing—New Trial,” dated February 7, 1975. This application was denied and on August 8,1975 Goldsberry applied to the superior court for an order confirming the arbitrators’ award. Hohn opposed the application and, following denial by the court of cross-motions for summary judgment, the matter went to trial on the following issues:

1. Whether the conversation between one of the arbitrators and Turley required the setting aside of the entire award; and
2. Whether the arbitrators exceeded their power in making an award fixing attorney’s fees on the basis of quantum meruit after deciding that the fee agreement was invalid.

The trial court thereafter made findings of fact and conclusions of law, and on August 5, 1976 entered a judgment denying confirmation of the award and remanding the matter for a new hearing before new arbitrators on the sole issue of the validity and the enforceability of the written retainer agreement. It left the quantum meruit issue to be decided, if necessary, by “such further proceedings as the parties may elect.”

The pivotal issue for our resolution is whether the trial court correctly determined that the conversation between one of the arbitrators and Turley went beyond the *43 parameters of the query agreed to by the parties and the arbitrators. On this point the court found:

“Mr. Turley and Mr. Oeser [the arbitrator] proceeded to discuss factual matters relating to the quantum meruit value of Mr. Hohn’s services and the propriety of the fee agreement under the circumstances of the case .. This conversation dealt with matters and issues which went to the very foundation of the award ultimately rendered by the arbitrators.
The Court wishes to emphasize that it does not for one moment question Mr. Oeser’s integrity; however, the Court does firmly believe that fundamental fairness, or if you prefer, a denial of due process, requires that the arbitration award not be affirmed.”

Goldsberry, relying on a quotation from an annotation in 47 A.L.R.2d 1362, urges that since Mr. Oeser testified that the additional conversation had no influence on his final decision, and that, since he did not divulge the additional information to the other two arbitrators, the error, if any, was harmless since it did not prejudice the award. The quotation relied upon states:

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Cite This Page — Counsel Stack

Bluebook (online)
583 P.2d 1360, 120 Ariz. 40, 1978 Ariz. App. LEXIS 572, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goldsberry-v-hohn-arizctapp-1978.