Harris Trust & Savings Bank v. Chicago College of Osteopathic Medicine

452 N.E.2d 701, 116 Ill. App. 3d 906, 72 Ill. Dec. 448, 1983 Ill. App. LEXIS 2117
CourtAppellate Court of Illinois
DecidedJuly 27, 1983
Docket82-0653
StatusPublished
Cited by9 cases

This text of 452 N.E.2d 701 (Harris Trust & Savings Bank v. Chicago College of Osteopathic Medicine) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harris Trust & Savings Bank v. Chicago College of Osteopathic Medicine, 452 N.E.2d 701, 116 Ill. App. 3d 906, 72 Ill. Dec. 448, 1983 Ill. App. LEXIS 2117 (Ill. Ct. App. 1983).

Opinion

JUSTICE O’CONNOR

delivered the opinion of the court:

Petitioner, Nicholas G. Dozoryst II, as trustee in bankruptcy of the estate of W. Jason Mitán, a disbarred attorney, filed a petition in the above-entitled cause for attorney fees on behalf of Mitán. His claim was alternatively based on (1) a referral agreement between Mitán and attorney Joseph A. Rosin, or (2) quantum meruit. Rosin moved for summary judgment, which was granted. Subsequently, the court denied Dozoryst’s motion for a rehearing. Dozoryst appeals, contending that (1) summary judgment was improperly granted because there were genuine issues of material fact, (2) the trial court improperly limited further discovery, (3) the trustee’s motion for rehearing was improperly denied, and (4) the trial court did not have jurisdiction to offset cash advances against the trustee’s claim for attorney fees.

On April 20, 1979, the parents of the minor plaintiff (Michael La Roi Richard Powell, Jr.) retained the law firm of Mitán and Michelotti in connection with a claim of medical malpractice resulting in permanent injury to the minor. Attorney Robert E. HcAuliffe was associated with that firm and filed suit on May 29, 1979, against the Chicago College of Osteopathic Medicine. In June 1979 Joseph A. Rosin was retained as trial counsel. In September 1979 the entire file was turned over to him and on December 10, 1979, he and HcAuliffe filed an amended complaint naming three doctors as defendants.

On January 15, 1980, Hitan was disbarred for making several material false statements on his application for admission to the bar. (In re Mitan (1979), 75 Ill. 2d 118, 387 N.E.2d 278.) The minor’s parents then discharged Hitan and HcAuliffe and retained Rosin as the sole attorney. Rosin effectuated a settlement of $2,000,000 against the college and the attending surgeons. Suit then proceeded against the on-call, but not present, physician, who was found not guilty by a jury. Attorney fees in the gross amount of $500,000 were awarded. The trial court ordered all persons other than Rosin to file petitions for fees.

McAuliffe filed a petition claiming a portion of the total fee awarded based upon an alleged agreement with Mitán. In response, the minor’s parents stated that they never retained McAuliffe and that his involvement was as an associate of Mitán, whom they had discharged. Rosin stated that McAuliffe was entitled to fees which had been fully paid.

In the meantime, a creditor of Mitán had filed a bankruptcy proceeding against him in the Federal court. That court entered a temporary restraining order preventing the payment of all fees and reimbursements in the case at bar. That order was based on statements by McAuliffe that Mitán had an interest in the fees to be paid in this case. After a hearing, the referee in bankruptcy set aside the restraining order and remanded all proceedings to the circuit court of Cook County to resolve all issues relating to attorney fees in this case.

On September 18, 1981, the trustee filed his petition for fees on behalf of Mitán. His petition was based solely on statements made by McAuliffe and claimed, upon information and belief, that Mitán was entitled to 421/a% of the fee awarded, based upon the referral fee agreement between Rosin and Mitán, as well as for undefined services performed by Mitán from April to December 1979.

In a suit unrelated to the case at bar, proceedings were pending between Rosin and McAuliffe concerning fees paid by Rosin to McAuliffe in that matter. The proceedings between Rosin and McAuliffe were settled and the latter executed a release and an affidavit in which he stated that his prior statements concerning fees allegedly due to himself or Mitán were false. McAuliffe was paid $25,000 to end further litigation. By stipulation, judgment was entered (1) in favor of Rosin against McAuliffe in the amount of $217,626.12 representing fees paid to McAuliffe in connection with the case at bar and other pending cases, and (2) denying McAuliffe any further attorney fees.

On October 1, 1981, Rosin filed his response to the trustee’s petition for fees and also filed a motion to dismiss, incorporating as exhibits the order of the trial court denying. fees to McAuliffe, McAuliffe’s affidavit and Mitán’s affidavit denying any interest or claim to fees or advances made in the case at bar. Subsequently, on October 13, 1981, Rosin filed a motion for summary judgment based on these affidavits and the verified responses of Rosin and of the parents of the minor plaintiff.

On November 18, 1981, the trustee filed his response to the motion for summary judgment, relying on McAuliffe’s original allegations concerning fees and on pleadings from the bankruptcy proceedings and on various allegations, conclusions and suppositions. On November 24, 1981, Rosin filed a detailed reply.

At the hearing on the motion for summary judgement, the trustee filed his notice to take the discovery deposition of Stanley Wilcox, an attorney named in the bankruptcy proceedings who had filed a motion objecting to discovery proceedings relating to fees allegedly due Mi-tan. The court denied further discovery. After arguments were heard, the trial court, on December 18, 1981, issued its memorandum of decision and order granting summary judgment. In his decision, he stated: “Under no set of facts presented to the court, disputed or otherwise, is Mitán entitled to recover any attorney’s fees. Nor is there even any suggested possible set of facts that would allow such recovery.” The trustee’s petition for rehearing was denied on February 18, 1982.

The trustee’s claim for fees was based on two grounds: (1) A referral fee agreement between Mitán and Rosin when the suit was assigned to Rosin just before Mitan’s disbarment. The trustee alleged that under that agreement the firm of Mitán and Michelotti would be entitled to 421/a% of the gross attorney fees. (2) Quantum meruit for the value of the services rendered by Mitán and Michelotti up until the time of Mitan’s disbarment.

We do not find it necessary to determine the effect of Mitan’s disbarment on the validity of the referral fee contract as to Rosin. (See Sympson v. Rogers (Mo. 1966), 406 S.W.2d 26; Code of Professional Responsibility Rules 2—106, 2—107 (87 Ill. 2d Rules 2—106, 2—107); Corti v. Fleisher (1981), 93 Ill. App. 3d 517, 529-32, 417 N.E.2d 764.) Even if it were valid, it could relate only to legal services rendered by Mitán up to the employment of Rosin by the minor’s parents at the time of Mitan’s disbarment. The record shows that upon his disbarment Mitán was paid by Rosin an additional $150,000 in complete discharge and release for all or any claims Mitán might have for attorney fees and costs in connection with the case at bar. Thus, Mi-tan has no claim that he was owed additional fees under the referral agreement. His trustee in bankruptcy has no greater rights. Mitán has been paid and his trustee is entitled to no further fees.

We reach the same result as to the trustee’s quantum meruit claim. After his discharge, an attorney’s right to recover fees is limited to reasonable fees for services rendered up to his discharge. (Rhoades v.

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Bluebook (online)
452 N.E.2d 701, 116 Ill. App. 3d 906, 72 Ill. Dec. 448, 1983 Ill. App. LEXIS 2117, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-trust-savings-bank-v-chicago-college-of-osteopathic-medicine-illappct-1983.