In Re Marriage of Malec

562 N.E.2d 1010, 205 Ill. App. 3d 273, 150 Ill. Dec. 207, 59 U.S.L.W. 2326, 1990 Ill. App. LEXIS 1576
CourtAppellate Court of Illinois
DecidedOctober 10, 1990
Docket1-89-0314
StatusPublished
Cited by33 cases

This text of 562 N.E.2d 1010 (In Re Marriage of Malec) 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
In Re Marriage of Malec, 562 N.E.2d 1010, 205 Ill. App. 3d 273, 150 Ill. Dec. 207, 59 U.S.L.W. 2326, 1990 Ill. App. LEXIS 1576 (Ill. Ct. App. 1990).

Opinion

JUSTICE FREEMAN

delivered the opinion of the court:

This is an appeal of an order of the circuit court denying Jerome Zurla’s (Zurla) petition for additional attorney fees.

This case originated as a dissolution of marriage between John Malee (Petitioner) and Mickie Flanagan. Petitioner entered into an agreement with Stuart Litwin (Litwin) to retain the law firm of Litwin, Zurla and Stein (LZ&S) to represent him in the dissolution of his marriage. Litwin required, and petitioner paid, a $15,000 retainer fee. Petitioner was told that the remainder of the fees would be settled, based on performance, at the end of the case. There was no written contract memorializing the agreement.

In June 1986, the LZ&S firm dissolved. Litwin and Zurla entered into an agreement with respect to the dissolution of the partnership which specified how the firm’s work in progress, including petitioner’s dissolution of marriage case, would be handled, and how post-partnership dissolution fees paid to either Litwin or to Zurla would be divided. Specifically, the agreement provided that Zurla would receive 40% and Litwin would receive 60% of any future fees paid on petitioner’s case to either Zurla or to Litwin.

Subsequent to the partnership dissolution, both Zurla and Litwin continued to represent petitioner. In August 1986, at the suggestion of Litwin and Zurla, petitioner hired the firm of Jenner & Block as additional counsel on the case. Thomas Sullivan, William Suriano and other Jenner & Block attorneys were actively involved. In January 1987, petitioner discharged Litwin, but continued to be represented by Zurla and the Jenner & Block attorneys.

Early in 1987, petitioner offered to pay Zurla $1 million if he obtained certain results in his dissolution of marriage. On June 5, 1987, petitioner met with Zurla to discuss the payment of fees. The meeting occurred in Edward Vrdolyak’s office; however, Vrdolyak was not present for the discussion. According to petitioner, Zurla demanded a $3 million fee. Petitioner was incensed and stated that the only fee previously promised was the $1 million fee, contingent upon the achievement of certain results. Petitioner stated that he did not owe Zurla $1 million because those contingencies had not been met. Zurla stated that he was only kidding when he suggested that he be paid $3 million.

On the following day, petitioner discharged Zurla as his attorney. Subsequently, petitioner and Zurla attempted to negotiate a settlement on the amount of fees. While a figure of $751,000 was discussed, no agreement was reached, and no additional fees have been paid.

It is undisputed that from the time petitioner began his dissolution action he has paid a total sum of $742,620 in connection with attorney fees, disbursed in the following manner:

(1) $15,000 initial retainer paid to LZ&S in December 1985,
(2) $135,000 additional retainer paid to LZ&S in July 1986,
(3) four additional monthly payments of $15,000 each to Zurla between January and April 1987,
(4) $150,000 paid to Litwin in June 1987,
(5) $105,000 paid on a personal guaranty loan to Harris Bank for Chicago Vote ’87, and
(6) $188,810 paid to Jenner & Block.

In Zurla’s second amended fee petition, he petitioned the court to award him fees in the amount of $1 million in quantum meruit and, alternatively, that the court award him $751,048.75 on a theory of accord and satisfaction. After a hearing, the trial court denied the fee petition and declined to award any additional fees. It is from this denial that Zurla now appeals. For the reasons stated below, we reverse and remand.

This case involves many facts and voluminous records. In the interest of brevity and clarity, relevant facts will be discussed in the body of this opinion as they pertain to the issues presented.

Zurla first contends that the trial court’s decision was based on a fundamentally erroneous approach. He argues that the court erroneously credited payments made by petitioner against the $1 million fee. We will address each disputed credit in turn.

THE JENNER & BLOCK PAYMENT

There is no dispute that petitioner independently retained the services of the Jenner & Block attorneys. Zurla argues that the trial court erroneously credited him with the $188,810 payment which petitioner made to Jenner & Block. His argument is premised on two points. First, Zurla claims that petitioner, in his closing argument, stated that he was entitled to a credit for all fees paid by him to all of the lawyers in the case. Second, following petitioner’s argument, the judge commented specifically that “over $180,000 [had been] paid to other lawyers at the firm of Jenner & Block.”

The record reveals that in closing argument, petitioner stated that he had paid $465,000 to or on behalf of Zurla and his partner. He concluded that, including Jenner & Block’s fees for this case, his total bill was over $723,000. Petitioner did not request that the Jenner & Block fees be credited against the Zurla bill.

Zurla has cited this court to the record of proceedings wherein the trial court stated its findings. However, we have not been provided with that portion of the record and we therefore decline to attach a meaning to the quoted statements of the court without benefit of considering them in their proper context. Moreover, the comments which Zurla quotes as having been “mentioned by the court” do not indicate to us that the court credited the Jenner & Block fees against him.

There is no requirement that the trial court make specific findings regarding fee awards (see In re Marriage of Kosterka (1988), 174 Ill. App. 3d 954, 960-61, 529 N.E.2d 12), and we decline to infer, merely from the denial of additional fees, that the court, in fact, credited Zurla with the Jenner & Block fees. That notwithstanding, we do agree with Zurla that any such credit would have been error. Thus, on remand, if the court did erroneously credit the Jenner & Block fees, it should make the necessary adjustment.

THE LITWIN PAYMENT

In January 1987, petitioner discharged Litwin as his divorce attorney. In a letter addressed to Litwin at “Litwin, Zurla & Stein,” petitioner stated that he had been dissatisfied with Litwin’s performance, and noted that he had already paid LZ&S $150,000. Petitioner wrote, “in the hopes that we still may have success and to avoid argument as to whether your efforts may have been partly responsible, I will agree to pay you an additional $150,000 fee upon fulfillment of [specified] conditions.” Included in the list of conditions was Litwin’s cooperation in transferring all files pertaining to the case, that petitioner obtain not less than joint custody and 50% time with his children, that the children be ordered to be schooled at the Latin school and that petitioner be able to keep all the stock that was then in his name.

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Bluebook (online)
562 N.E.2d 1010, 205 Ill. App. 3d 273, 150 Ill. Dec. 207, 59 U.S.L.W. 2326, 1990 Ill. App. LEXIS 1576, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-marriage-of-malec-illappct-1990.