Hall v. Archcare

CourtDistrict Court, S.D. New York
DecidedMarch 16, 2021
Docket1:18-cv-00515
StatusUnknown

This text of Hall v. Archcare (Hall v. Archcare) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hall v. Archcare, (S.D.N.Y. 2021).

Opinion

ics UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK | DOC #: . nnnnnn-n == === □□□ === === === X DATE FILED: 3/16/2021 DENISE HALL,

Plaintiff, 18-CV-00515 (PAC)(SN) -against- OPINION & ORDER ARCHCARE, et al., Defendants.

nnn enn eK SARAH NETBURN, United States Magistrate Judge. On June 4, 2020, the Hon. Paul A. Crotty referred this matter to me to resolve a request by Plaintiffs counsel, Michael Diederich, to restore this case to the docket for the purpose of assessing a charging lien pursuant to New York Judiciary Law § 475 against Plaintiff Denise Hall’s settlement proceeds. See ECF No. 42. As discussed below, the motion to fix and enforce a charging lien is GRANTED in the amount of $15,000. BACKGROUND On January 19, 2018, Plaintiff Denise Hall initiated this action, asserting that she had been wrongfully terminated from her position as a registered nurse by Defendants due to racial and age discrimination in violation of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, New York Labor Law, and New York City Human Rights Law, among others. See ECF No. 1. At that time, and throughout the litigation of this case, Plaintiff was represented by Michael David Diederich, Jr., of the Law Office of Michael David Diederich Jr. (“Diederich”). Plaintiff and Diederich had entered into a retainer agreement on March 11, 2016, pursuant to which Diederich agreed to represent Plaintiff in her claims against Defendant. See

ECF No. 33, Ex. 1 at 2 (Retainer Agreement). According to the Retainer Agreement, Diederich was to be paid the greater of “(a) Thirty[-]three and one-third percent (33-1/3%) of any sums recovered whether recovered by suit, settlement or otherwise; or (b) the attorney’s actual accrued fees, which fee shall be based upon an hourly rate of $400. (This $400/hour provision will only

in unusual circumstances exceed 50% of the total recovery.)” Id. The Retainer Agreement further required, in the case of litigation, the Plaintiff “to pay the attorney $75 per hour toward attorney’s accrued attorney’s fee, payable when billed, which partial fee shall, when paid, be deemed a credit toward the attorney’s fee referenced above.” Id. Finally, the Retainer Agreement required the client to prepay for case-related expenses. Id. On June 13, 2019, Diederich requested, via letter, a court conference in order to discuss his possible withdrawal from this case because his and his client’s expectations for the resolution of the case were quite different and because Plaintiff’s “understanding of her written retainer agreement” differed from her attorney’s. ECF No. 23. Diederich’s request was granted, ECF No. 24, and on June 27, 2019, Plaintiff and her attorney attended a status conference before Judge

Crotty. Defense counsel also attended. At the conference, Judge Crotty heard from both Diederich and Ms. Hall, and instructed Diederich to make “one more good faith effort with [his] client and with [defense counsel] to see if” the matter could be resolved. June 27, 2019 Conference Tr. at 5:13–15. The next day, Judge Crotty referred this matter to my docket for settlement. ECF No. 25.1 By October 2019, the parties had agreed to the terms of a settlement and were exchanging drafts of proposed settlement agreements. See ECF No. 33, Ex. 1 at 52 (October 11, 2019 email). After Diederich sent a draft of the Settlement Agreement to his client, she reportedly asserted

1 A settlement conference was eventually scheduled for December 2, 2019, but it was adjourned in light of Diederich’s motion to withdraw. ECF No. 31. that her accountant was reviewing the proposed settlement papers. See id. at 54 (November 12, 2019 email). Despite several emails from Diederich, Plaintiff apparently did not respond to any emails, let alone provide information as to the changes she wished to make to the settlement agreement or a revised copy of the settlement agreement for several weeks. See id, at 58–59

(November 21, 2019 emails), 61 (November 23, 2019 email), 63 (December 2, 2019 emails). On November 25, 2019, Diederich moved to withdraw as Plaintiff’s attorney. See ECF No. 29. At the time, Diederich reported that the parties had come to an agreement on the terms of a settlement; after defense counsel prepared the proposed settlement papers, Plaintiff took time to review the papers and alleged there was a point of concern. Id. at 1. As of November 25, 2019, Diederich had not heard from his client for six days, as Plaintiff was apparently not answering any of his calls, texts, or emails, and had not provided Diederich with the change she wished to make to the settlement. Id. Diederich also asserted that his client had been uncooperative for “many months,” did not trust him, and had refused to pay him the partial fee he was owed pursuant to the retainer agreement they had entered into. Id. at 2; see ECF No. 33, Ex. 1 at 2.

Judge Crotty did not rule on Diederich’s motion to withdraw. On December 10, 2019, Plaintiff informed Defense counsel via email that she would send a signed copy of the settlement agreement by December 20, 2019; she ultimately did not send her signed agreement until January 2, 2020, which she sent directly to Defense counsel, and not to Diederich. ECF No. 33, Ex. 1 at 69 (December 10, 2019 emails), 72–73 (January 2, 2020 emails). Diederich alleges that the document Plaintiff sent back to defense counsel was not the agreed-upon settlement document that he had previously reviewed. ECF No. 33 at ¶¶ 4(m)–(p). In essence, Diederich asserts that the settlement agreement the parties had agreed to (and which he had reviewed) provided that Defendants were to pay Plaintiff an undisclosed sum and a “one- time lump sum payment . . . made to Ms. Hall’s attorney, Michael D. Diederich, Jr., in the amount of [redacted] for attorney’s fees, for which an IRS form 1099 will be issued to Ms. Hall and Michael D. Diederich, Jr.” Id. at 15 (“original” settlement agreement). The settlement

agreement that Plaintiff signed and returned to defense counsel, however, referred to “a one-time lump sum payment . . . made to Ms. Hall’s attorney, Michael D. Diederich, Jr., in the amount of [redacted] (33.3%) for full attorney’s fees, for which an IRS form 1099 will be issued to Ms. Hall and Michael D. Diederich, Jr.” Id. at 26 (“altered” settlement agreement) (emphasis added). This latter page is initialed “DH” and the full agreement is signed by Plaintiff. Diederich asserts that the “total settlement amount remained the same” in the second version of the settlement agreement, but that Plaintiff had retyped the page including this provision to reduce the amount of attorney’s fees Diederich would receive pursuant to the settlement. ECF No. 33 at ¶ 4(p). Plaintiff tells a different narrative. She asserts that Diederich demanded an “excess of 50% in legal fees of [the] Settlement agreement.” ECF No. 40 at ¶ 5. She asserts that his

allegations that she tried to defraud him by changing the settlement agreement amount to defamation, and that Diederich was not entitled to more than a third of the proceeds of the settlement. Id. at ¶ 6. Plaintiff also notes that in July 2019, Diederich initiated efforts and enlisted the assistance of other counsel to recoup his unpaid legal fees. See id. at 3, 93 (December 7, 2019 email), 98 (July 17, 2019 email). On January 11, 2020, Diederich filed a Motion to Enforce Attorney’s Charging Lien, requesting that the Court honor and enforce a charging lien in the sum of $20,000. ECF No. 32 (Notice of Motion).2

2 In support of his motion to enforce a charging lien, Diederich filed a declaration with accompanying exhibits, ECF No. 33, as well as two memorandums of law, see ECF Nos. 34 and 35. Upon the Court’s On January 14, 2020, Judge Crotty dismissed the matter and closed the case after learning that the parties had reached a settlement in principle. ECF No. 36.

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