HENICAN JAMES AND CLEVELAND v. Strate

348 So. 2d 689
CourtLouisiana Court of Appeal
DecidedOctober 26, 1977
Docket8255
StatusPublished
Cited by7 cases

This text of 348 So. 2d 689 (HENICAN JAMES AND CLEVELAND v. Strate) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
HENICAN JAMES AND CLEVELAND v. Strate, 348 So. 2d 689 (La. Ct. App. 1977).

Opinion

348 So.2d 689 (1977)

HENICAN JAMES AND CLEVELAND, a partnership
v.
Mrs. Mildred Chiasson, divorced wife of Zachary A. STRATE.

No. 8255.

Court of Appeal of Louisiana, Fourth Circuit.

July 11, 1977.
Rehearing Denied August 1, 1977.
Writ Refused October 26, 1977.

*690 Joseph P. Henican, III, Henican, James & Cleveland, New Orleans, for plaintiff-appellee.

Valerie Fontaine, New Orleans, for defendant-appellant.

Before REDMANN, GULOTTA and BEER, JJ.

REDMANN, Judge.

Plaintiff law firm was discharged by defendant client after two days of trial of an action in federal district court. It was discharged after it wrote defendant a four-page letter which prompted defendant to ask a conference with the judge, at which plaintiff sought to withdraw as counsel but was refused by the judge (who allowed, as a "constitutional" right, defendant to discharge plaintiff). The result was that much of the time that plaintiff spent in preparation for trial and presumably all of the time spent in trial was a complete loss to defendant. Plaintiff nevertheless sued for payment for all time spent at the agreed rate of $50 an hour, and the trial judge gave judgment on that basis.

We conclude that a lawyer who quits a client without reasonable justification in mid-trial is not entitled to be paid for his time which has been made worthless by his quitting; and that the same conclusion applies to a lawyer who is discharged by the client after the lawyer's attempt to quit without reasonable justification is refused by the trial judge.

The agreement by a lawyer to litigate a matter for a client for a fee of an hourly rate is, of its essence, an agreement by the lawyer to litigate the matter to its conclusion (at least to the end of trial). It is not an agreement for the hiring of labor by the hour; the hourly rate merely establishes the fee to be paid for trying the case. The lawyer, unlike the typical hourly wage earner, does not leave all of his valuable work behind him when he quits; he has much of it in his head, undeliverable to the client except by performing his undertaking *691 in its entirety. The bricklayer, on the contrary, howsoever his craftsmanship and art may have required the exercise of his internal faculties, leaves outside of himself at the end of each day a work product that merits his pay for that day's hours. Even a bricklayer who has undertaken to lay the bricks of a whole house (designed by another) for an hourly wage, but who quits prior to its completion, leaves his external product, the partially completed structure, which another competent bricklayer can complete in approximately the same number of hours the first bricklayer would have taken; and if the second can be employed at the same hourly wage, the first's quitting prior to completion of the entire contract would not have caused the owner any excess cost of completion. The quitting bricklayer may therefore be entitled to be paid for all the hours worked because the owner gets full value for all those hours.

Not so the lawyer who undertakes to litigate. His pleadings, memoranda and depositions have real value and can be used by subsequent counsel, but they do not contain all of the product of his hours of work, and subsequent counsel cannot complete the litigation in the same number of hours that first counsel would have taken. The hours that the first lawyer spent familiarizing himself with the evidence and constructing factual and legal contentions must to a large extent be spent again by later counsel; and the hours of an aborted jury trial must be entirely repeated.

We therefore conclude that the lawyer employed on an hourly fee basis to litigate a matter cannot recover on that fee basis when he unjustifiably terminates or gives the client cause reasonably to terminate the employment prior to completion. He can recover only for the enrichment, within La.C.C. 1965, which his services have afforded the client, because otherwise the client would be unjustly enriched.

The Trial Court's Error

The trial judge placed too narrow a construction on the pleadings and adopted the position that defendant's only defense was in the nature of a set-off in the amount of the costs defendant had to pay for the aborted jury trial.

Defendant's answer denied that it owed plaintiff the $9,225.40 claimed, and alleged "plaintiff's representation was terminated because of its failure and refusal to represent petitioner at trial of her case in Federal Court, which refusal to continue to represent Petitioner came after two days of trial, at which time it was impossible for her to obtain further representation and which further obligated her to pay substantial court costs in excess of $8,000, all to respondent's damage and prejudice." (In fact, the testimony indicated, defendant did not have to pay those costs because the order to pay was set aside on appeal.) The trial court, upon reading this wording, ruled that defendant's evidence of the cost of employing another lawyer to try the case was inadmissable: "The answer speaks for itself, and it addresses itself to court costs and not attorney fees and I would have to maintain the objection."

The parties did not request written findings of fact and reasons for judgment as C.C.P. 1917 authorizes. However, it appears from the trial judge's rulings of record that he viewed defendant's answer as accepting liability for the $50 hourly fees and as seeking credit only for costs imposed (when, as it turned out, costs were not imposed on defendant). This view is incorrect because defendant was not asserting an affirmative defense that C.C.P. 1005 required be pleaded; defendant's "negative defense" was but a denial of the alleged indebtedness, and it was therefore plaintiff's burden to prove its allegations, especially when defendant alleged she discharged plaintiff for cause. The substance of defendant's answer is that she denies liability because plaintiff itself breached their contract. "Every pleading shall be so construed as to do substantial justice"; C.C.P. 865. Understandable though the trial judge's construction of the answer be, we conclude that it was erroneous, and that it caused an erroneous judgment.

*692 Plaintiff's Attempted Termination Unjustified

Termination of an attorney-client relationship to the client's prejudice will inevitably raise questions of the propriety of the attorney's action. Termination by the client may also present, in substance, the same questions because the lawyer who unjustifiably provokes the client into a prejudicial termination of the relationship must also be answerable for his action.

Plaintiff did, by its attempted termination during trial, provoke defendant's reasonable reaction of discharging plaintiff. The question is whether plaintiff's behavior was justified.

The beginning of the end was a single-spaced four-page letter by plaintiff through its senior partner, hand-delivered to defendant on the second day of trial, reurging acceptance of a compromise. The letter was written "to preserve certain facts concerning my relationship with you" and its topic paragraph was:

It is still my considered opinion that the best possible way for me to serve you in this case is to reurge your acceptance of the compromise proposal, and I am recording this fact so that at some future date you will not try to blame me, as you have tried to blame me for so many other things, for not having forced you into the compromise.

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348 So. 2d 689, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henican-james-and-cleveland-v-strate-lactapp-1977.