Grossman v. West 26th Corp.

9 Misc. 3d 414
CourtCivil Court of the City of New York
DecidedJuly 25, 2005
StatusPublished
Cited by1 cases

This text of 9 Misc. 3d 414 (Grossman v. West 26th Corp.) is published on Counsel Stack Legal Research, covering Civil Court of the City of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grossman v. West 26th Corp., 9 Misc. 3d 414 (N.Y. Super. Ct. 2005).

Opinion

OPINION OF THE COURT

Eileen N. Nadelson, J.

Plaintiff, an attorney licensed to practice law in the state of New York for over 50 years, brought this action against his former clients for legal fees occasioned by his representing them in [415]*415a real estate transaction. Plaintiff had represented the individual client several times in the past with respect to real property purchases and transfers, and was the attorney who formed the corporate defendant.

The instant action arose when the individual defendant asked plaintiff to represent him and the corporation in a real estate closing involving the mortgaging of six properties that had been transferred to the corporation. Defendant brought some of the documents to plaintiff on Thursday, the closing to be held the following Monday morning. Plaintiff was not involved in the negotiation of the mortgage note, and was hired to review the papers and represent defendants at the Monday closing.

Plaintiffs past representation for defendant (hereinafter the singular form is used to reflect both the individual and corporate defendants) had never included this type of mortgaging procedure, and his past bills sent to defendant had not exceeded $1,000. Plaintiff did not have any letter of engagement with defendant, and after the closing sent defendant a bill for $8,901.50.

During the bench trial, plaintiff testified that there had been no time to have defendant sign either a letter of engagement or a retainer agreement, he had represented defendant previously without any written agreement, and that defendant never disputed his bill but only sent him a check for $3,500, which plaintiff deposited on account without indicating it was deposited under protest.

Defendant testified that he disputed the bill sent to him by plaintiff because it was considerably higher than any other bill submitted to him by plaintiff for previous work performed, and that he called plaintiff to challenge the cost but plaintiff would not talk to him. He stated that he sent the check for $3,500 because he believed that that was more than a fair fee for the work performed.

At trial plaintiff failed to produce any written diary indicating the time spent on this representation. Plaintiff testified that he could not recall the specific hours and time that he spent on the matter. At one point the court attempted to calculate the hours based on plaintiffs testimony, and asked plaintiff if it was about 38 hours, which plaintiff indicated seemed right. When questioned about his normal billing practices, plaintiff stated that he does the work and then sends a bill based on what he thinks the work is worth. The previous bills sent to defendant that were either testified to or admitted into evidence only indicate the nature of the work performed and the amount billed—they never indicate days or hours worked.

[416]*416Defendant does not dispute that plaintiff reviewed the documents, made some modifications thereto that were incorporated into the final papers, and appeared at the closing on his behalf. Defendant also testified that, based on his previous bills from plaintiff, he had never been charged more than approximately $100 to $125 per hour; however, this is mere supposition because none of plaintiff’s bills indicate an hourly fee or number of hours worked.

Neither party introduced any evidence of what would constitute the customary hourly fee for an attorney in plaintiffs geographical area and type of practice.

Since 2002, attorneys practicing in the state of New York are required to adhere to the provisions of 22 NYCRR 1215.1 which states:

“(a) . . .an attorney who undertakes to represent a client and enters into an arrangement for, charges or collects any fee from a client shall provide to the client a written letter of engagement before commencing the representation, or within a reasonable time thereafter:
“(1) if otherwise impracticable; or
“(2) if the scope of services to be provided cannot be determined at the time of the commencement of representation.
“For purposes of this rule . . . [wjhere there is a significant change in the scope of services or the fee to be charged, an updated letter of engagement shall be provided to the client.
“(b) The letter of engagement shall address the following matters:
“(1) explanation of the scope of the legal services to be provided;
“(2) explanation of attorney’s fee to be charged, expenses and billing practices; and
“(3) where applicable, shall provide that the client may have a right to arbitrate fee disputes . . .
“(c) Instead of providing the client with a written letter of engagement, an attorney may comply with the provisions of subdivision (a) of this section by entering into a signed written retainer agreement with the client, before or within a reasonable time after commencing the representation, provided that the agreement addresses the matters set forth in [417]*417subdivision (b) of this section.”

Certain exceptions exist with respect to these requirements, which are enumerated in 22 NYCRR 1215.2. These exceptions include representation of a client where the fee to be charged is expected to be less than $3,000, or the representation is of the same general kind as previously rendered to and paid for by the client.

Initially, the few cases that have been brought under these rules have precluded attorneys who did not adhere to their provisions from collecting any fee for services performed. (Feder, Goldstein, Tanenbaum & D’Errico v Ronan, 195 Misc 2d 704 [Nassau Dist Ct 2003].) However, a recent decision from this court has allowed attorneys to recover under a theory of quantum meruit. (See Lewin v Law Offs. of Godfrey G. Brown, 8 Misc 3d 622 [Civ Ct, Kings County 2005].) This court must decide whether the case at bar falls within one of the exceptions to the rule or, if not, whether plaintiff may be entitled to recover the reasonable value of the services performed.

Plaintiff argued that it was impracticable to have either a letter of engagement or a retainer agreement because of the short time frame involved in the representation. In Klein Calderoni & Santucci, LLP v Bazerjian (6 Misc 3d 1032[A], 2005 NY Slip Op 50274[U] [Sup Ct, Bronx County 2005]), the court did not accept a similar argument of lack of time when the evidence presented indicated that the clients went to the attorney’s offices on May 14, 2004, and the hearing for which the representation was sought was held on May 19, 2004. The court also found the attorney’s argument that the past dealings with the client negated the necessity of a written agreement to be unavailing. The period involved was five days, the exact number of days involved in the case at bar. Consequently, the court finds plaintiff’s argument of lack of practicability due to time constraints to be without merit.

Plaintiff next argued that the scope of the services could not have been determined at the commencement of the representation because he did not receive all of the paperwork on the Thursday in question. Defendant disputes this. However, even if some papers arrived a few days later, plaintiff still had a sufficient amount of time to create a letter of engagement.

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Bluebook (online)
9 Misc. 3d 414, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grossman-v-west-26th-corp-nycivct-2005.