Haitham Joudeh v. Pfau Cochran Vertetis Amala, Pllc

CourtCourt of Appeals of Washington
DecidedAugust 24, 2015
Docket72533-5
StatusUnpublished

This text of Haitham Joudeh v. Pfau Cochran Vertetis Amala, Pllc (Haitham Joudeh v. Pfau Cochran Vertetis Amala, Pllc) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Haitham Joudeh v. Pfau Cochran Vertetis Amala, Pllc, (Wash. Ct. App. 2015).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON DIVISION ONE

HAITHAM JOUDEH, No. 72533-5-

Appellant, V'O v.

en C J -r =* PFAU COCHRAN VERTETIS AMALA, r\) ' " -. PLLC, a Washington professional -F" Z~'~- J~> ~yj limited liability company d/b/a PFAU S» —-»» COfTl 3r~.. COCHRAN VERTETIS KOSNOFF, CD C) CA PLLC; DARRELL L. COCHRAN, CD —ii—• O — individually and on behalf of the marital UNPUBLISHED OPINION CD Z2~ "^

community comprised of DARRELL L. COCHRAN and JANE DOE COCHRAN, FILED: August 24, 2015

Respondents.

Verellen, J. — Haitham Joudeh and his son were injured in a car accident

resulting from a botched repossession. Joudeh hired attorney Darrell Cochran to

pursue a personal injury action against multiple tortfeasors, alleging both direct and

vicarious liability claims. With Cochran's urging, Joudeh settled for $350,000 with four

of the six tortfeasors. Cochran then withdrew. Joudeh was unable to retain new

counsel, and he did not appear or oppose the two remaining tortfeasors' motions for

summary judgment. The court granted the remaining tortfeasors summary judgment

and dismissed Joudeh's counterclaims for failure to prosecute. Joudeh did not appeal

those adverse rulings. No. 72533-5-1/2

Joudeh sued Cochran and his law firm, Pfau Cochran Vertetis Amala (Cochran),

for legal malpractice and other claims. The trial court granted summary judgment

dismissing all of Joudeh's claims.

Joudeh contends genuine issues of material fact remain for trial. But his failure

to appear or oppose the motions for summary judgment in his underlying personal injury

action cuts off any causal link between Cochran's alleged misconduct and the loss of

his direct liability claims. And Joudeh fails to demonstrate that he would have recovered

more than the $350,000 partial settlement for his vicarious liability claims. We conclude

no genuine issues of material fact remain regarding proximate cause for any of his

claims on appeal.

Joudeh also contends a trial court may order disgorgement of fees as a remedy

for an attorney's breach of fiduciary duty, even absent proof of proximate cause. We

agree.

We affirm in part, reverse in part, and remand to consider the potential equitable

remedy of disgorgement of fees upon proof of a breach of fiduciary duty.

FACTS1

Joudeh entered into a loan agreement with Spokane Firefighters Credit Union

(SFCU) to buy a truck. Joudeh defaulted on the loan. SFCU hired Auto Trackers to

repossess the truck. Auto Trackers then hired Strickland Recovery LLC to assist in the

repossession.

1 Cochran vigorously denies any malpractice, breach of fiduciary duty, breach of contract, or Consumer Protection Act violation. Because this is an appeal from summary judgment, we set forth the facts in a light most favorable to Joudeh. No. 72533-5-1/3

Auto Trackers employees Matthew Mayo and Trisha Matthews and Strickland

Recovery's owner Joshua Strickland found Joudeh driving the truck with his son.

Strickland drove a tow truck. Mayo and Matthews followed in another vehicle. Joudeh

and his son were injured when, following a high speed chase, Strickland's tow truck

rear-ended Joudeh's truck, pushing it into Mayo's and Matthews's vehicle.

Joudeh hired Cochran and signed a contingent fee agreement. Regarding costs,

the agreement states:

Client agrees to reimburse Attorneys ... for all Costs incurred by the same in pursuit of this matter. At theirsole discretion, Attorneys will advance payment of Costs .... Attorneys may require Client to pay for all such advanced Costs before additional Costs are incurred by Attorneys.[2]

Joudeh sued SFCU, Auto Trackers, Mayo, Matthews, Strickland Recovery, and

Strickland. The claims against SFCU and Auto Trackers included theories of vicarious

liability for the acts of their purported agents and direct liability for negligent hiring,

training, and supervision and breach of the peace.

Joudeh consistently told Cochran that he "very much wanted to take [his] case to

trial."3 During mediation, Joudeh said that "he didn't want to settle with anyone at

various points or that he wanted a million dollars,"4 and that he believed his "damages

were between 2.5 to 3 million [dollars]."5 Cochran advanced the litigation costs, but

because he believed Joudeh was taking positions "against his best interest" and "his

2 Clerk's Papers (CP) at 375 (emphasis added). 3 CP at 531. 4 CP at 410. 5 CP at 531. No. 72533-5-1/4

child's best interests," Cochran requested that Joudeh deposit $10,000 for ongoing

litigation expenses.6

Cochran urged Joudeh to accept a settlement for $350,000 to release Mayo,

Matthews, Strickland, and Strickland Recovery from all liability. Strickland Recovery

and Auto Trackers each had $1,000,000 of liability coverage. Mayo and Matthews each

had $100,000 of liability coverage.

Joudeh authorized Cochran to settle with Strickland Recovery and Strickland for

$250,000 and with Matthews and Mayo for $100,000. But he alleges Cochran coerced

him into the partial settlement by invoking the cost provision of the fee agreement and

requiring him to advance $10,000 if he did not agree to the $350,000 settlement offer.

Joudeh also alleges Cochran assured him the partial settlement would not impact his

vicarious liability claims.

Cochran obtained continuances for Joudeh's case against Auto Trackers and

SFCU and then withdrew. Four months later, Auto Trackers and SFCU moved for

summary judgment. Joudeh obtained an extension to respond. Later, attorney Steven

Bobman made a limited appearance on behalf of Joudeh to seek additional time to

oppose the summary judgment motions. The trial court denied the request. Neither

Bobman nor Joudeh filed any materials in opposition to or appeared for argument of the

summary judgment motions. The trial court granted SFCU and Auto Trackers summary

judgment and dismissed Joudeh's counterclaims against SFCU for failure to prosecute.

Joudeh did not appeal any of the adverse rulings.

6 CP at 234. No. 72533-5-1/5

Joudeh sued Cochran for legal malpractice, breach of fiduciary duty, breach of

contract, and violation of the Consumer Protection Act, chapter 19.86 RCW. Cochran

moved for summary judgment, arguing that Joudeh could not establish proximate cause

for any of his claims. The trial court granted Cochran summary judgment, concluding all

of Joudeh's claims failed for lack of proximate cause. The trial court's oral ruling stated:

[Pjlaintiff failed to challenge or appeal the adverse ruling[s] in the underlying personal injury action. As a matter of law[,] that failure defeats the plaintiff's proof of proximate cause here, period. . . .

. . . [I]t applies equally across the board to each and every legal theory they now posit.[7]

Joudeh appeals.

ANALYSIS

Standard of Review

We review a summary judgment order de novo, performing the same inquiry as

the trial court.8 We view the facts and all reasonable inferences in the light most

favorable to the nonmoving party.9 Summary judgment is proper if there are no genuine

issues of material fact.10 "A material fact is one that affects the outcome of the

litigation."11

7 CP at 972-73. 8 McDevitt v. Harborview Med. Ctr., 179 Wn.2d 59, 64, 316 P.3d 469 (2013). 9 Fulton v. State. Dep't of Soc. & Health Servs., 169 Wn. App.

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