In the Matter of Estate of Roybal

2008 NMCA 110, 191 P.3d 537, 144 N.M. 679
CourtNew Mexico Court of Appeals
DecidedMarch 31, 2008
Docket26,874
StatusPublished
Cited by2 cases

This text of 2008 NMCA 110 (In the Matter of Estate of Roybal) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In the Matter of Estate of Roybal, 2008 NMCA 110, 191 P.3d 537, 144 N.M. 679 (N.M. Ct. App. 2008).

Opinion

OPINION

SUTIN, Chief Judge.

{1} In this appeal, chents challenge the enforcement of their lawyer’s charging hen. The charging hen was filed to enforce a contingent fee agreement, pursuant to which the lawyer sought an interest in land recovered for the chents in a lawsuit. We affirm the district court’s enforcement of the charging hen.

BACKGROUND

{2} Arnold Padilla (Padilla) was retained as legal counsel to prosecute a claim for property against the estate of Antonio Roybal (the estate), on behalf of siblings Lee Uhbarri, Jerry Uhbarri, Anthony Uhbarri, and Nieves Schehl (the Ulibarris). Lee and Padilla agreed to a fee for Padilla’s “[p]ursuit of claim for property ... against ... [the estate],” whereby Padilla would receive a $1500 retainer and would be paid a contingency fee equaling “1/6 of recovery[,] plus” an “[h]ourly rate fee of $75[ ] per hour.” The fee agreement also stated:

It is understood that attorney has accepted representation of this case at half his hourly rate, plus $ of his normal contingency, at chent’s exphcit request. It is further understood that the 1/6 contingency applies to the fair market value of ah property and assets recovered on behalf of client and his two brothers and sister, whether recovered in short order through negotiations and settlement, or following trial and judgment. It is also contemplated that [Padilla] will represent the [e]state in a possible malpractice and wrongful death action, in the event that [Ulibarri] assumes control of such cause of action.

{3} Padilla represented Lee, Jerry, and Anthony throughout the proceedings against the estate pursuant to the fee agreement. Schehl allowed Padilla to represent her in a deposition and to file documents in the lawsuit on her behalf until Padilla withdrew as her attorney well before the case against the estate was tried. Schehl never signed the fee agreement.

{4} The Ulibarris received a favorable decision from the bench trial in district court that awarded them approximately 101 acres, known as the “Cabins property.” During the estate’s appeal of the judgment, the parties mediated and reached a settlement by agreeing that the Ulibarris would receive property that was different than the Cabins property awarded at trial; that is, the Ulibarris were to receive approximately 180 acres of land in three separate tracts, plus $40,000, and they were to relinquish back to the estate the Cabins property. Further, the parties “understood and agreed that the $40,000 will be allocated to expenses and costs of trial” and, in addition, that the Ulibarris would each receive an undivided 25% interest in the property they were getting in the settlement “after allocation and payment of the balance of all expenses and attorney fees (16.67% of the acreage).” The 16.67% contingency was discussed during the mediation with Lee present in the room, with Jerry, Anthony, and Schehl present by speaker phone. A draft of the memorandum of understanding was faxed to Schehl during the mediation. The memorandum shows the signature of Lee and indicates telephonic approval by Jerry, Anthony, and Schehl.

{5} Following the mediation, Padilla filed a motion for approval and enforcement of settlement and for an order “determining the character and method of assets distribution.” In that motion, Padilla discussed various circumstances that led him to conclude that the settlement could not be consummated without the involvement of the court. Among other things, Padilla sought approval of a ‘“Disposition of Settlement Proceeds’” he contended was agreed to, namely, instead of receiving 30.006 of 180 acres, under a particular formula he would receive 20% of 150 acres, and his 20% interest would be “partitioned off from the rest of the property” to be “converted to acreage and deeded to him separately.”

{6} Lee apparently responded to Padilla’s motion by accusing Padilla of unethical conduct and other wrongdoing, but that response is not in the record on appeal. Because of Lee’s response, Padilla filed an attorney’s charging lien seeking $28,111.35 against the $40,000 payment from the estate in the settlement and, in addition, a 16.67% interest in each of the three separate tracts of land obtained in the settlement. At the same time, Padilla moved for enforcement of his charging hen. In his memorandum filed in support of his motion, Padilla explained that the contingency of 16.67% had been “stated as a tenancy-in-common percentage ... as a practical short-term facilitation for obtaining deeds” to the properties from the estate because, due to serious deed description and survey issues regarding the properties to be transferred by the estate, the only other “approach would be to further delay the deeds[’] exchange pending specific acreage allocations.”

{7} Following a remand by this Court in the estate’s pending appeal for the district court to address any dispute in regard to the settlement agreement, the district court proceeded to address enforcement of the settlement agreement. At the hearing, Lee discussed his concerns about the settlement agreement and about what he viewed as Padilla’s unauthorized and improper conduct. However, given the opportunity by the district court to have the settlement agreement voided, Lee stated he did not want to void the settlement agreement. The district court orally approved the settlement agreement, directed that $26,791.54 of the $40,000 be paid to Padilla and that the Ulibarris be paid the difference, and reserved for later consideration all issues regarding the contingent fee agreement and Padilla’s charging lien. The district court then entered an order stating that the memorandum of understanding between the parties to the action was “approved in full and final settlement of all claims between [the Ulibarris] and [the estate].”

{8} After the settlement agreement hearing, the Ulibarris obtained new legal counsel and filed a response to Padilla’s charging lien. The response asserted that Padilla had been paid approximately $40,000 based on hourly fee charges and argued that a contingency fee arrangement was not permissible in a Probate Code proceeding and that all of Padilla’s fees should be calculated based only on the original hourly fee agreement. The Ulibarris also contended that Schehl had not retained Padilla and that the brothers should not have to pay fees for any benefit to Schehl. On the day before the scheduled hearing on Padilla’s charging lien, the Ulibarris filed another response, essentially contending that Padilla’s conduct was fraudulent, in bad faith, and otherwise wrongful, and that Padilla violated Rule 16 — 108(J) NMRA by acquiring a proprietary interest in the subject matter of the litigation. The Ulibarris stated that allowing Padilla both an hourly rate and a contingency fee would give him a windfall, and they asked the court to quash the charging lien and to set a reasonable attorney fee based on $150 per hour.

{9} In the hearing on Padilla’s charging lien, the Ulibarris abandoned their Probate Code argument after the court informed them that the action against the estate was not a probate proceeding. The hearing consisted only of counsel’s arguments and discussions with the court.

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Cite This Page — Counsel Stack

Bluebook (online)
2008 NMCA 110, 191 P.3d 537, 144 N.M. 679, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-the-matter-of-estate-of-roybal-nmctapp-2008.