Hall v. Zukosky (In Re Baker)

93 B.R. 760, 1988 Bankr. LEXIS 2093, 1988 WL 133735
CourtUnited States Bankruptcy Court, M.D. Florida
DecidedNovember 29, 1988
DocketBankruptcy No. 87-135-BKC-3P7, Adv. No. 87-176
StatusPublished
Cited by2 cases

This text of 93 B.R. 760 (Hall v. Zukosky (In Re Baker)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hall v. Zukosky (In Re Baker), 93 B.R. 760, 1988 Bankr. LEXIS 2093, 1988 WL 133735 (Fla. 1988).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW

GEORGE L. PROCTOR, Bankruptcy Judge.

This adversary proceeding is before the Court upon the Trustee’s complaint seeking to avoid a fraudulent transfer pursuant to 11 U.S.C. § 548(a), to determine validity, priority and extent of a lien, and to sell property free and clear of all liens. A trial of this matter was held June 2, 1988, and upon the evidence presented, the Court enters Findings of Fact and Conclusions of Law:

FINDINGS OF FACT

1. The debtor in this case, Tracy M. Baker, considered himself a lay homeopathic physician. In early 1985, the State of Florida instituted civil and criminal litigation to enjoin him from the unlicensed practice of medicine. The State court issued a permanent injunction ex parte.

2. Soon after the issuance of the injunction, a meeting was held in Orlando, Florida, by a group of supporters of homeopathy. At the meeting, two attorneys, Edward Zukosky and his son, William Zuko-sky, were introduced to the debtor. Upon being informed of the debtor’s legal problems, they agreed to assume responsibility for the civil case and to take an appeal of the injunction. It was the impression of at least two persons attending the meeting that the Zukoskys would undertake the representation to promote homeopathy and without fee.

3. The debtor testified that he retained Edward Zukosky but never had any discussions concerning fees. The Zukoskys did ask to be reimbursed $1,100 for their plane fare to the Orlando meeting.

4. The attorneys who worked on the appellate brief in the civil case were the Zukoskys, Bill Moore, a Savannah attorney, and Alan Fields, local counsel.

5. William Zukosky testified that the other attorneys recommended that the appeal focus solely on the due process error by the trial court in entering a permanent injunction without giving the enjoined party an opportunity to be heard. He rejected that advice and instead used the brief to make an attack on the constitutionality of the State of Florida’s system of regulating the practice of medicine.

6. The appellate court overturned the injunction but only on the grounds of lack of due process.

7. Dan Warren, a Daytona Beach attorney, and Alan Fields represented the debt- or at his trial on the criminal charges.

8. The debtor was convicted and sentenced to prison. The Zukoskys offered to assist in the criminal appeal.

9. The initial role of the Zukoskys in the criminal appeal was to write part of the appellate brief with the other parts to be written by Robert Altman, the attorney of record, and Fletcher Baldwin, a law professor.

10. William Zukosky ended up writing most of the brief and deleted most of the work done by the other attorneys. The final product was over 100 pages. The brief was printed in condensed type in order to fall within the seventy-five page limit of the appellate court (which was an extension of the normal fifty page limit).

11. The criminal appeal was denied without opinion. This per curiam affirmance left no jurisdiction for further appellate review. The debtor was then incarcerated.

*762 12. Edward Zukosky went to the prison where the debtor was being held so the debtor could sign the deed that is the subject of this proceeding.

13. The deed transferred the debtor’s half interest in real property that he had inherited jointly with his brother, defendant D. Anthony Baker, from their father’s estate. Debtor agreed to sign the deed to permit Zukosky to sell the property conditioned upon the proceeds being utilized as follows: the first $20,000 was to be given to the debtor’s wife, the next $10,000 was to be paid to attorney Robert Altman, and the balance was to be paid into a defense fund. There was no express discussion of fees to Mr. Zukosky. This account was corroborated by Keith Sales and Emma Du-pree, who testified that in their many discussions with Edward Zukosky there was never any mention of such fees.

14. Edward Zukosky testified that the transfer of the land to him was consideration for his legal services. He considered the conveyance ás a flat fee payment although he could not say what the amount of the fee was. State documentary stamps showing a value of $1,000 were placed on the deed.

15. Edward Zukosky did not declare the value of the land as income for tax purposes. He has not paid his one-half share of the real estate taxes. Defendant, D. Anthony Baker, the owner of the one-half remainder, testified that Edward Zukosky has ignored his request for a contribution for payment of the taxes.

16. There was no expert testimony as to the value of the land. Although there was some testimony that the debtor’s one-half interest was worth in the neighborhood of $100,000, the Court accepts the more credible testimony of defendant, D. Anthony Baker, the co-owner, that the land has a value of less than $75,000.

17. The deed was dated December 20, 1985, but not recorded until February 11, 1986. The debtor filed his petition on January 29, 1987.

18. The debtor was insolvent both on the day he executed and delivered the deed and on the day it was recorded.

CONCLUSIONS OF LAW

1. Ip the absence of a specific agreement, there is a presumption that an attorney working for a client is entitled to be paid a reasonable fee. Zorovich v. Stoller, 293 So.2d 788 (3d DCA 1974). It is undisputed that there was no written fee agreement or any specific oral agreement. Edward Zukosky first testified that there was an implicit agreement that he and his son would be paid on an hourly basis but that they would defer the fee until mpney was available. He later testified that the transfer of the land was an outright payment as a fixed fee of unspecified amount. At the time they undertook representation of the debtor, the Zukoskys were aware that payment would be a problem since the debtor was unable even to reimburse the $1,100 plane fare. They did not keep contemporaneous time records or itemization of expenses. It was not until after they agreed to represent the debtor that Edward Zukosky discovered the debtor’s interest in the land. William Zukosky testified that when he found that the land had been deeded to his father, it came as a “complete and pleasant surprise.”

2. An attorney is not entitled to any fees in the absence of a contract or proof of time actually worked. Chain Store Warehouses v. Picard, 431 So.2d 685 (Fla. 3d DCA 1983). Edward Zukosky’s timesheet (Exhibit 6) and William Zuko-sky’s timesheet (Exhibit 9) are estimates prepared for this trial. The Edward Zuko-sky exhibit consists of dates on which he performed some unspecified or vaguely specified services, with ten hours allocated for each day indicated. Many of the days are grouped into 80 or 90 hour blocks of legal time. William Zukosky’s timesheet consists solely of blocks of days and weeks with no detail as to what services were performed, apparently allocating 13 hours of legal services for each day. Each attorney indicates that hundreds of hours of legal time were spent reading books relating to homeopathy. At the time, they were working on four other cases involving ho-

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In Re Allied Computer Repair, Inc.
202 B.R. 877 (W.D. Kentucky, 1996)
In Re Waxman
148 B.R. 178 (E.D. New York, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
93 B.R. 760, 1988 Bankr. LEXIS 2093, 1988 WL 133735, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hall-v-zukosky-in-re-baker-flmb-1988.