Hoglund v. Meeks

139 Wash. App. 854
CourtCourt of Appeals of Washington
DecidedJuly 24, 2007
DocketNo. 34992-2-II
StatusPublished
Cited by25 cases

This text of 139 Wash. App. 854 (Hoglund v. Meeks) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hoglund v. Meeks, 139 Wash. App. 854 (Wash. Ct. App. 2007).

Opinion

[859]*859¶1 — This case involves breach of a fee-sharing contract among attorneys who at various times served as a plaintiff’s attorney in a personal injury lawsuit otherwise unrelated to this appeal. Defendants Steven Meeks, Jay Goldstein, and Sherelle Willingham appeal the trial court’s liquidated damages award and bench trial finding that they breached their contract with plaintiff John Hoglund in failing to share the contingent attorney fee when their mutual client settled with the insurance company. Defendants argue that (1) Willingham did not have apparent authority to contract on behalf of their law firm, the Goldstein Law Office, where she worked as an attorney; (2) there was no agreement between Hoglund and Willingham forming the basis of a contract to share the contingent attorney fee for the personal injury client; (3) the trial court abused its discretion in admitting evidence of the personal injury client’s settlement; (4) the trial court erred in awarding prejudgment interest; and (5) Willingham did not receive proper service. In addition, defendant Meeks individually argues that even if there was a valid contract between Willingham and Hoglund, there was not substantial evidence of a contract between him (Meeks) and Hoglund.

Hunt, J.

¶2 Holding that Willingham had apparent authority to enter into a fee-sharing contract with Hoglund, we affirm.

FACTS

I. Legal Representation

A. Original Contract Between Willingham (at Graf Firm) and Hoglund

¶3 Following an automobile accident in June 2000, in which he was injured, Robert Bostwick entered into a contingent fee agreement with Olympia attorney F. Daniel Graf. Graf agreed to represent Bostwick in his personal injury case with the understanding that Graf could associate outside counsel to assist in Bostwick’s representation. [860]*860Their fee agreement provided for a one-third contingent attorney fee on any recovery from the litigation. Paragraph 10 of the fee agreement stated that an attorney withdrawing from Bostwick’s representation would receive no fee.

¶4 Sherelle Willingham, an associate attorney at Graf’s law firm, was the primary contact and lead attorney for Bostwick. In June 2001, Graf entered into an association of counsel agreement with attorney John Hoglund. Under the agreement, Hoglund was the lead attorney; he undertook the primary representation of Bostwick and, in return, he was entitled to 80 percent of the contingent fee if he recovered damages for Bostwick. Once Hoglund obtained Bostwick’s file, Willingham’s involvement was “limited to periodic, regular conferences” with Hoglund’s paralegal. Hoglund and Willingham had very limited contact concerning the Bostwick litigation.

¶5 Between June 2001 and July 2003, Hoglund provided most of the legal assistance on Bostwick’s case. Hoglund filed the complaint, engaged in discovery, and retained expert witnesses. He also attended a mediation with Bostwick and the tortfeasor’s insurance company and procured and rejected a $150,000 settlement offer as too low, telling Bostwick that the offer would increase once the insurance company had an opportunity to evaluate the claim fully.

B. Willingham Leaves Graf Firm for Goldstein Firm

¶6 While Hoglund was working on Bostwick’s case, in July 2001, Willingham left the Graf law firm to work part time at the Goldstein Law Office. Graf allowed Willing-ham to take her personal injury cases to Goldstein, one of which was Bostwick’s case.

¶7 At the Goldstein firm, Willingham handled several cases that had originated with the Graf firm and contained a fee arrangement with Hoglund similar to their fee agreement in the Bostwick litigation. When Hoglund settled or resolved a case that had originated at the Graf law firm, he would send a portion of the attorney’s fee to Willingham at [861]*861the Goldstein Law Office. Willingham would then, in turn, forward a portion of this check to Graf. This relationship continued for two years with no problems. Hoglund and Willingham split fees on cases without a written agreement.

C. Hoglund Downsizes Practice; Negotiations for Bostwick’s Future Representation

¶8 In September 2003, Hoglund downsized his practice, associated with another law firm,1 and explained to Bostwick that he wanted to bring in another lawyer from his new firm to assist with the litigation. Bostwick refused and asked Hoglund to bring Willingham back into the litigation and to transfer his file to her.

1. Hoglund and Willingham discuss roles

¶9 Graf was disbarred. For this reason, on September 26, Willingham sent a letter from the Goldstein Law Office to Bostwick explaining that they needed to terminate their legal services agreement with Graf and to enter into a new agreement with the Goldstein firm and a new association of counsel agreement with Hoglund. Hoglund received a copy of this letter.

¶10 On September 29, Hoglund told Willingham that he no longer wished to be the lead trial attorney for the Bostwick litigation but he would continue to handle strategy issues and to assist in managing the file. Willingham told Hoglund that she wanted him to remain on the case and that she had reservations about taking over as the lead trial attorney herself.

¶11 Hoglund and Willingham discussed the future fee arrangement for the Bostwick litigation. Hoglund suggested that he receive 80 percent of the contingent fee on the first $150,000 of recovery, because he had already [862]*862negotiated a settlement offer in that amount for Bostwick; 50 percent of any additional contingent fee if the case settled at a future mediation; and 10 percent of any additional contingent fee if the case went to trial. Not reaching a definitive agreement on the exact breakdown of the fee split, they decided to revisit the issue. Hoglund knew, however, that Willingham needed the Goldstein firm’s assent before any agreement on future fees became final.

¶12 Hoglund continued to work on the Bostwick litigation. He revised and finalized interrogatory answers, met with the case’s expert physician, and advanced the associated expenses.

¶13 By early October, Willingham confirmed that she had filed a cocounsel association document in the Bostwick litigation. She told Hoglund that she was finalizing a draft association agreement with the Goldstein firm for him to sign. Hoglund turned over all of his work product to Willingham, including his correspondence and notes, interrogatory answers, analysis of previous medical care, analysis of medical diagnoses, evaluation of the case’s weaknesses and strengths, trial preparation, and a “complete mediation preparation and presentation materials.” Clerk’s Papers at 1116-17. The record does not show whether Willingham ever finalized the Goldstein association agreement for Hoglund to sign.

2. Willingham’s association with Meeks

¶14 Uncomfortable acting as Bostwick’s lead trial attorney, Willingham contacted Steven Meeks, who leased office space from the Goldstein firm. Meeks agreed to substitute for Hoglund as lead counsel in the Bostwick litigation. Bostwick agreed to Meeks’ serving as the lead trial attorney. Meeks never entered into a written fee agreement with Goldstein, Willingham, or Bostwick.

[863]*8633.

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Bluebook (online)
139 Wash. App. 854, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hoglund-v-meeks-washctapp-2007.