In Re Doyle

581 N.E.2d 669, 144 Ill. 2d 451, 163 Ill. Dec. 515, 1991 Ill. LEXIS 96
CourtIllinois Supreme Court
DecidedOctober 17, 1991
Docket71174
StatusPublished
Cited by48 cases

This text of 581 N.E.2d 669 (In Re Doyle) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Doyle, 581 N.E.2d 669, 144 Ill. 2d 451, 163 Ill. Dec. 515, 1991 Ill. LEXIS 96 (Ill. 1991).

Opinion

JUSTICE MORAN

delivered the opinion of the court:

The Administrator of the Attorney Registration and Disciplinary Commission filed a complaint alleging, inter alia, that respondents, John A. Doyle (Doyle) and Gabriel A. Kostecki (Kostecki), collected an excessive fee in violation of the Code of Professional Responsibility (the Code) (87 Ill. 2d R. 2 — 106(a)) in their handling of a life insurance matter for Alojza Janus, the complainant herein. A panel of the Hearing Board found Kostecki had committed prejudicial acts against the interests of his client and recommended that he be censured. The panel further recommended that the charges against Doyle be discharged. The Review Board concurred with the Hearing Board’s findings of fact and conclusions of law. However, the Review Board recommended that the charges against each of the respondents be dismissed and that Kostecki not be censured for his prelitigation conduct because such conduct was not alleged in the Administrator’s complaint. The Administrator filed exceptions to the report and recommendation of the Review Board (134 Ill. 2d R. 753 (e)(6)).

The issues presented for review are whether: (1) respondents’ collection of one-third of the complainant’s life insurance proceeds constituted an excessive fee; (2) Doyle’s motion for a directed finding was properly granted by the Hearing Board; and (3) Kostecki can be disciplined for his prelitigation conduct.

The relevant facts are as follows. Kostecki was admitted to the Illinois bar in 1966 and thereafter maintained a storefront, neighborhood law office on the northwest side of Chicago. His ability to speak both English and Polish enabled him to represent many working-class Polish people, some of whom spoke little or no English. Joseph Janus, who immigrated to the United States from Poland, sought Kostecki’s legal advice as a consequence of the tragic deaths of his two brothers, Adam and Stanley, and Stanley’s wife, Theresa.

Three members of the Janus family were victims of the infamous “tainted Tylenol” episode in 1982. During the evening of September 29, 1982, Stanley and Theresa, while at Adam’s home, were mourning Adam’s death when they both unknowingly ingested cyanide-laced Tylenol capsules from the same container that Adam previously had taken capsules. Stanley and Theresa became very ill and both were transported by ambulance to a hospital. Stanley was pronounced dead at 8:15 p.m., on September 29, 1982. Theresa, however, was put on a medical respirator while in a deep coma, and was not pronounced dead until 1:15 p.m., on October 1, 1982. The question of whether Theresa survived Stanley was the subject of a lawsuit. See Janus v. Tarasewicz (1985), 135 Ill. App. 3d 936 (appellate court affirmed trial court finding that Theresa survived her husband Stanley).

At the time of Stanley’s and Theresa’s deaths, two $100,000 life insurance policies were in effect, one issued by the Reserve Life Insurance Company (Reserve) and the other issued by the Metropolitan Life Insurance Company (Metropolitan). On each of these two policies, Theresa was the primary beneficiary and Stanley’s mother, the complainant, was the contingent beneficiary. However, only the Reserve policy contained a 15-day clause which provided in part: “If any beneficiary dies at the same time as the insured, or within 15 days after the insured *** the life insurance proceeds will be paid as though that beneficiary died before the insured.” Therefore, given the 15-day clause in the Reserve policy and the fact that Theresa did not survive Stanley beyond 15 days, the proceeds of the Reserve policy would normally be paid to the complainant.

Before a panel of the Hearing Board, Joseph Janus testified as follows: prior to his brother Stanley’s death, Joseph and Stanley had been partners in the automotive parts business; in October of 1982, about a day or so after Stanley’s funeral, he gathered some partnership and insurance papers (including the Reserve and Metropolitan policies) from a locker at their auto parts store and visited Kostecki’s law office; at this meeting, he instructed Kostecki to look over these papers and correspond with the Tarasewiczes (the administrator of Theresa’s estate) and explore the possibility of settling Stanley and Theresa’s affairs in a fifty-fifty manner; Kostecki glanced at the documents and returned one of them to Joseph with instructions that Joseph cash in the policy; he left Kostecki’s office and over the next two months or so, he periodically inquired about the status of the papers that were left behind.

He also testified that, on December 23, 1982, a second meeting was arranged at Kostecki’s office where he and other members of his family signed the following contingent-fee agreement:

“We, the undersigned, as heirs and/or beneficiaries of STANLEY JANUS, Deceased, do hereby retain and employ GABRIEL A. KOSTECKI and DOYLE & RYAN, LTD. to represent us in the presentation of claims against the Estate of Teresa [sic] Janus (who had been married to Stanley Janus) and any insurance companies involved and in the handling of the Estate of Stanley Janus, Deceased, and in consideration of their services, in addition to the payment of any fees normally associated in the handling of said Estate, agree to pay said attorneys for their services one-third (1/3) of the value of any asset, as well as one-third (US) of any amount entering the Estate of Stanley Janus or received by any of us individually from said Estate or as beneficiaries of, or from any insurance proceeds on the life of Stanley Janus including but without limitation proceeds of Metropolitan Life Insurance Company Policy No. 822 — 902— 081 — A and proceeds of Reserve Life Insurance Company Policy No. 010587916S. The above fee arrangement covers all services through the trial court level. Appeals, which are rare, are not included in the above fee arrangement. Clients also are responsible for the reimbursement of expenses incurred in the handling of the above.” (Emphasis added.)

The gravamen of the Administrator’s complaint concerns the reasonableness of the one-third contingent fee charged against the proceeds of the Reserve policy.

Kostecki also testified before the hearing panel and his testimony was generally as follows: Joseph Janus called his office and informed him of Stanley Janus’ death; shortly after Stanley’s funeral, Joseph visited Kostecki’s law office and brought certain insurance papers — a Metropolitan life insurance policy, a Reserve life insurance policy, a New York Life insurance policy, an Aetna insurance policy, and a business insurance policy; Joseph asked him to review the policies and determine who would recover the proceeds under the respective policies; he read the policies and discovered that the New York Life policy had lapsed; he returned the business insurance policy to Joseph and advised him to cash it in; he considered the timing of Stanley’s and Theresa’s deaths to be determinative as to who would recover the death benefit under the Metropolitan policy; and that after examining the Reserve policy and its 15-day clause, he determined that the proceeds under this policy would be payable to the complainant.

Although he was in receipt of the above policies, Kostecki admitted to informing an attorney from the law firm representing Theresa’s estate, Renn & High, that he did not possess any insurance policies.

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Cite This Page — Counsel Stack

Bluebook (online)
581 N.E.2d 669, 144 Ill. 2d 451, 163 Ill. Dec. 515, 1991 Ill. LEXIS 96, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-doyle-ill-1991.