I.A.E., Inc. and William Lazarus

49 N.E.3d 138, 2015 Ind. App. LEXIS 765, 2015 WL 9305725
CourtIndiana Court of Appeals
DecidedDecember 22, 2015
Docket45A05-1503-PL-100
StatusPublished
Cited by7 cases

This text of 49 N.E.3d 138 (I.A.E., Inc. and William Lazarus) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
I.A.E., Inc. and William Lazarus, 49 N.E.3d 138, 2015 Ind. App. LEXIS 765, 2015 WL 9305725 (Ind. Ct. App. 2015).

Opinion

RILEY, Judge.

STATEMENT OF THE CASE

[1] Appellants-Defendants/Cross-Appel-lees, I.A.E., Inc. (IAE) and William Lazarus (Attorney Lazarus) appeal ’ the trial court’s summary judgment in favor of Ap-pellees-Plaintiffs/Cross-Appellants, Edward R. Hall (Attorney Hall) and Gerald M. Bishop (Attorney Bishop), awarding them attorney fees and expenses arising from their representation of IAE in the underlying cause against the Board of Works of the City of Lake Station'(Lake Station); 1

[2] We reverse in part, affirm in part, and remand.

ISSUES

[3] ■ IAE raises three issues on .appeal, which we restate as follows:

(1) Whether the trial court properly awarded attorney fees pursuant to the guidelines in Galanis v. Lyons & Truitt, 715 N.E.2d 858 (Ind.1999);
(2) Whether Attornéy Hall is entitled to an abuse of process claim; and
(3) Whether the trial court abused its discretion when it excluded the testimony of IAE’s expert witness.

Attorney Lazarus raises one issue on appeal, which we restate as: Whether the trial court erred in denying his motion for partial summary judgment, seeking fees of 10% of IAE’s recovery in the underlying cause.

On Cross-Appeal, Attorney Hall and Attorney Bishop raise one issue, which we restate as: Whether they.are entitled to appellate attorney fees in accordance with Indiana Appellate Rule 66(E).

FACTS AND PROCEDURAL HISTORY

(4) This is a saga of unremunerated attorneys, a disgruntled client, and the grant of a sizeable damage award. Although the factual and procedural history of this case is labyrinthine, a full recitation of the events leading to this third appeal is *144 necessary to appreciate the tortured and convoluted road this case has travelled.

[5] On May 18, 2000, Ramamurty Tal-luri (Talluri), the president of IAE, retained the services of Attorney Bishop to represent IAE in a iawsuit against “Lake State [sic], Indiana, for breach of contract, entered into on June 19, 1990.” (Appellant’s App. p. 575). The retainer contract provided for a contingent fee of “25% of the amount recovered.” ■ (Appellant’s App. p. 575). Attorney Bishop filed the Complaint, which was assigned to Judge Sveta-noff at the superior court of Lake County, sitting in Gary, Indiana. On August 11, 2003, the trial court granted summary judgement to Lake Station. In the letter to his. client, Attorney Bishop warned Tal-luri about the importance of timely appealing the decision and informed Talluri that he did “not intend to automatically appeal the ruling under our current fee arrangement.” (Appellant’s App. p. 1269). On September 4, 2003, Attorney Bishop proposed a new fee agreement by which he would pursue an appeal “on a contingent fee basis of 50% of any amount recovered.” (Appellant’s App. p. 1270). After verbally agreeing and after Attorney Bishop had filed the notice of appeal, Talluri rejected the proposal and contacted Attorney Edward Hall (Attorney Hall) to pursue the appeal on IAE’s behalf.

[6] On September 29, 2003, Attorney Hall., and Talluri entered into an attorney fee agreement by which Attorney Hall would pursue the “appeal [in] IAE v. City of Lake Station” for a “fee to be 33 1/3% of any recovery,” in addition to an hourly fee of $150 (2003 Agreement). (Appellant’s App. p. 371). Attorney' Bishop withdrew from the case on October 2, 2003, and on October 17, 2003, he filed a notice of attorney lien, requesting payment pursuant to the retainer contract.

[7] On November 3, 2004, after fully briefing the case on appeal and an oral argument before the appellate bench, Attorney Hall secured a reversal of the trial court’s grant of summary judgment in favor of Lake Station. See IAE Inc. Consulting Engineers v. Bd. of Works of the City of Lake Station et al, No. 45A03-0310-CV-418, 817 N.E.2d 703 (Ind.Ct.App. Nov.’ 3, 2004). Finding issues of material fact that required resolution-by a trier of fact, this court remanded the cause for trial. See id. at 2. Our supreme court denied transfer. In preparation for a jury trial, Attorney Hall and Talluri entered into a new contingency fee agreement in August 2005 (2005 Agreement), calling for a fee of 40% of any recovery and asserting that the lien filed by Attorney Bishop was solely IAE’s responsibility. On June 16, 2010, after a two-week trial, the jury returned a verdict of $965,300 in favor of IAE. On July 13, 2010, after the jury verdict, Lake' Station filed a notice of appeal.

[8] Wanting to review his responsibility with respect to this post-trial appeal, Attorney Hall attempted to locate the 2005 Agreement. However, the banker’s box that should have contained both the 2003 and 2005 Agreements was empty and Attorney Hall did not keep a signed copy of either Agreement. During the first week of July 2010, Attorney Hall met with Talluri to negotiate a new fee agreement to pursue the second appeal, seeking a contingency fee of 45%. Talluri refused to sign the proposed agreement and over the next several weeks, Attorney Hall and Talluri exchanged numerous emails, discussing the terms of the new fee proposal. On July 27, 2010, the attorney for Take Station contacted Attorney Hall, advising him that Talluri was discussing settlement terms by calling the mayor directly. Upon learning of Talluri’s attempt to settle the case, Attorney Hall filed a notice of *145 attorneys lien on July 30, 2010, which was subsequently amended on- September 28, 2011. When the email exchange between Attorney Hall and Talluri failed to reach a compromise on a new fee agreement, Attorney Hall filed a complaint for declaratory judgment in small claims court, presided by Judge Michael' Pagano (Judge Pagano), requesting a declaration

A. That the scope of work contemplated by the 2003 [Agreement] has been completed.
B. The parties’ action since the Court of Appeals’ decision in 2004 have merged the 2005 [A]greement into the 2003 [A]greement and that [Attorney Hall is entitled to the 40% for handling the trial when and if recovery is made. Attorney Hall has completed all of his respective . duties under the 2005 [A]greement and until the matter is disposed of by the Court of Appeals in this second appeal, he has no further obligation of representation of the defendant absent a new agreement to do'so.
C. As the defendant has refused the offer by [Attorney Hall for representation in the newest appeal, [Attorney] Hall is not bound to supply further representation without remuneration and has no obligation to pay IAE for its newest lawyer.
D. In the alternative, if this court determines that there .was. no 2005 [Agreement], plaintiff is entitled to the agreed 33 1/3% contingency fee for handling the first appeal AND a quantum meruit claim for his time expended beyond the first appeal at the 2003 contract rate of $150.00/hr.

(Appellant’s App. p. 139).

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
49 N.E.3d 138, 2015 Ind. App. LEXIS 765, 2015 WL 9305725, Counsel Stack Legal Research, https://law.counselstack.com/opinion/iae-inc-and-william-lazarus-indctapp-2015.