Handler v. Smith

2021 IL App (1st) 191942-U
Appellate Court of Illinois·Decided May 19, 2021·No. 1-19-1942·Unpublished

Opinion

2021 IL App (1st) 191942-U No. 1-19-1942

Order filed May 19, 2021

Third Division

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

IN THE

APPELLATE COURT OF ILLINOIS FIRST DISTRICT

JOEL F. HANDLER, ) Appeal from the ) Circuit Court of

Plaintiff-Appellee, ) Cook County )

v. ) No. 19 M1 103303 )

TAMARA SMITH, ) Honorable ) Mary Kathleen McHugh, Defendant-Appellant. ) Judge presiding.

JUSTICE BURKE delivered the judgment of the court.

Presiding Justice Howse and Justice McBride concurred in the judgment.

ORDER

¶1 Held: We affirm the circuit court’s judgment in favor of plaintiff where, based on the record on appeal, we have no basis to disturb the judgment. We also deny plaintiff’s motion to dismiss this appeal.

¶2 Tamara Smith hired attorney Joel F. Handler to represent her in an employment matter against the Board of Education of Thornton Township High School District 205. After Handler filed a charge of discrimination against District 205 with the Equal Employment Opportunity Commission (EEOC) on Smith’s behalf, the parties reached a resolution during a mediation. While

that resolution was being memorialized into a written settlement agreement, Smith disagreed with the portion of the settlement amount that Handler claimed he was entitled to as attorney fees. Before Smith signed the settlement agreement with District 205, she sent Handler an e-mail stating that she was firing him and then, she completed the settlement on her own. Smith subsequently directed District 205 to send Handler an amount of attorney fees that she thought they had agreed upon. Handler disagreed with the amount, believing that he was owed more based upon their engagement agreement, and sued Smith for breach of contract. The case went to trial where the circuit court found in Handler’s favor.

¶3 Smith now appeals the circuit court’s judgment, contending that: (1) the court erred in allowing Handler to sue for breach of contract based upon their engagement agreement rather than under the doctrine of quantum meruit; and (2) Handler’s attorney fees were excessive. Initially, we deny a motion to dismiss this appeal filed by Handler that was taken with the case, and for the reasons that follow, we affirm the judgment of the circuit court.

¶4 I. BACKGROUND

¶5 In July 2018, Smith signed an engagement agreement for Handler to represent her in the prosecution of an employment-related claim against District 205. As part of the agreement, they agreed that Handler would be paid $500 per hour while the matter was pending before the EEOC. If the matter could not be resolved before the EEOC, they agreed that the agreement would convert to a contingency-fee arrangement following the filing of a complaint in federal court. In such a scenario, Handler would receive 40 percent of any sum obtained by settlement, suit or otherwise, but that Smith would be responsible for whatever attorney fees and costs had been incurred before the conversion. They further agreed that, in the event Handler was awarded statutory attorney fees, Smith would receive a credit against the amount she owed him commensurate with the amount of

statutory attorney fees. Additionally, Smith agreed to pay Handler’s reasonable costs in connection with his representation of her.

¶6 Following the execution of their agreement, Handler filed a charge of discrimination against District 205 with the EEOC on Smith’s behalf. Thereafter, Handler sent Smith his first invoice, which detailed his time spent working on her case in July 2018 and amounted to three hours of work and a total of $1500 in services. Smith paid $1475 of the first invoice. In a second invoice for services rendered in August 2018, Handler billed Smith $1400, which included $1375 in services that month plus the $25 outstanding from the first invoice.

¶7 On September 28, 2018, Smith and Handler executed an amended engagement agreement, whereby the hourly-fee arrangement was superseded by a contingency-fee arrangement. Under this new arrangement, Smith agreed to pay Handler 40 percent of any sum obtained by lawsuit, settlement or otherwise. In addition to this amount, however, Smith agreed to pay Handler his outstanding balance of $1400 for legal services rendered under their prior hourly-fee arrangement. The amended engagement agreement also contained a clause that stated, if Smith requested Handler withdraw as her attorney prior to the resolution of her claim by suit, settlement or otherwise, she agreed to pay him $500 per hour, or his then-customary hourly rate, “for the time which he has spent in connection with [her] claim, or forty percent (40%) of the amount being offered by” District 205 “at the time of [the] request to withdraw, whichever is greater.”

¶8 On November 5, 2018, Handler conducted a mediation with District 205’s attorney and an EEOC mediator, which resulted in the parties reaching a resolution. Following the mediation, the EEOC mediator wrote both Handler and District 205’s attorney congratulating them for “reaching a resolution” and observing that it was her “understanding *** that the parties will be entering into a separate agreement with language drafted and agreed upon by you.” The mediator asked them to

reach out if they needed help completing the “settlement paperwork” and stated that Handler should execute a withdrawal of charge form “in conjunction with the separate agreement.” A week later, Smith signed a request to withdraw her charge of discrimination against District 205.

¶9 As part of the settlement agreement, which was titled a “Release and Waiver of Claims,” District 205 agreed to pay Smith a sum of $15,000 in exchange for, among other things, Smith withdrawing her charge of discrimination and promising not to otherwise sue. On November 15, 2018, Handler sent Smith a settlement statement to review that showed $6000 of that $15,000 (or 40 percent) was assigned to Handler as attorney fees under their contingency-fee agreement, $1400 was assigned to Handler for the past due attorney fees under the hourly-fee agreement and $2.87 went to reimburse Handler for costs. The remaining $7597.13 was assigned to Smith.

¶ 10 In response to being sent the settlement statement, Smith e-mailed Handler and indicated that they agreed to his attorney fees being only $5150 at the mediation. This number was calculated by Smith by taking 40 percent of $15,000 minus $850, an amount she claimed she already paid him. Smith added that Handler “cannot double dip. It was either the 40 [percent] compensation or paid hourly.” Smith asserted that she would not sign a settlement where Handler received $7000 and reiterated that he was owed $5150, which “was part of the reason I agreed to the settlement.” Handler replied and remarked that Smith’s representations were “inaccurate” and ignored their amended engagement agreement. In response to Handler’s e-mail, Smith asserted: “You said if there was a settlement you would get forty and if there was no settlement you would be owed a hourly wage for whatever you did.” Smith added that she was unemployed and never would have agreed to an arrangement where Handler received that amount. Smith further stated: “You reassured me when I asked you it didn’t mean both when I signed it.” Finally, Smith remarked that if Handler could not “take what we agreed on [$]5150 your [sic] fired.”

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

Handler v. Smith, 2021 IL App (1st) 191942-U (Ill. Ct. App. 2021).

2021 IL App (1st) 191942-U (Handler v. Smith) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

In Re Smith
659 N.E.2d 896 (Illinois Supreme Court, 1995)
Todd W. Musburger, Ltd. v. Meier
914 N.E.2d 1195 (Appellate Court of Illinois, 2009)
Foutch v. O'BRYANT
459 N.E.2d 958 (Illinois Supreme Court, 1984)
Haudrich v. Howmedica, Inc.
662 N.E.2d 1248 (Illinois Supreme Court, 1996)
Van C. Argiris & Co. v. FMC Corp.
494 N.E.2d 723 (Appellate Court of Illinois, 1986)
Ceres Illinois, Inc. v. Illinois Scrap Processing, Inc.
500 N.E.2d 1 (Illinois Supreme Court, 1986)
Chicago Title & Trust Co. v. Ceco Corp.
415 N.E.2d 668 (Appellate Court of Illinois, 1980)
Mireles v. Indiana Harbor Belt Railroad
507 N.E.2d 129 (Appellate Court of Illinois, 1987)
Hux v. Raben
230 N.E.2d 831 (Illinois Supreme Court, 1967)
In Re Trusts of Strange Ex Rel. Whitney
755 N.E.2d 149 (Appellate Court of Illinois, 2001)
Lee Ex Rel. Lee v. Ingalls Memorial Hospital
597 N.E.2d 747 (Appellate Court of Illinois, 1992)
In Re Estate of Callahan
578 N.E.2d 985 (Illinois Supreme Court, 1991)
Chicago Investment Corp. v. Dolins
481 N.E.2d 712 (Illinois Supreme Court, 1985)
Daniels v. Anderson
642 N.E.2d 128 (Illinois Supreme Court, 1994)
Wegner v. Arnold
713 N.E.2d 247 (Appellate Court of Illinois, 1999)
Rhoades v. Norfolk & Western Railway Co.
399 N.E.2d 909 (Illinois Supreme Court, 1979)
In Re Holz
533 N.E.2d 818 (Illinois Supreme Court, 1988)
Rosenblatt v. Michigan Avenue National Bank
389 N.E.2d 182 (Appellate Court of Illinois, 1979)
In Re Gerard
548 N.E.2d 1051 (Illinois Supreme Court, 1989)
Condon & Cook LLC v. Mavrakis
2016 IL App (1st) 151923 (Appellate Court of Illinois, 2017)