James H. Harris, III v. Edward K. White, III

CourtCourt of Appeals of Tennessee
DecidedMay 16, 2012
DocketM2011-00992-COA-R3-CV
StatusPublished

This text of James H. Harris, III v. Edward K. White, III (James H. Harris, III v. Edward K. White, III) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
James H. Harris, III v. Edward K. White, III, (Tenn. Ct. App. 2012).

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE December 15, 2011 Session

JAMES H. HARRIS, III v. EDWARD K. WHITE, III

Appeal from the Chancery Court for Davidson County No. 071972IV Russell T. Perkins, Chancellor

No. M2011-00992-COA-R3-CV - Filed May 16, 2012

This is a dispute between two attorneys. Attorney 1 hired attorney 2 to represent him. Attorney 2 sued attorney 1 for attorney fees, and attorney 1 counterclaimed for legal malpractice. The trial court granted attorney 2 summary judgment on the attorney fee claim, and a jury found in favor of attorney 2 on the legal malpractice claim. On appeal, attorney 1 challenges both decisions on multiple grounds. Finding no error, we affirm the judgment of the trial court in all respects.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Chancery Court Affirmed

A NDY D. B ENNETT, J., delivered the opinion of the Court, in which P ATRICIA J. C OTTRELL, P.J., M.S., and F RANK G. C LEMENT, J R., J., joined.

Edward K. White, III, Franklin, Tennessee, Pro Se.

Darrell Gene Townsend, J. Thomas Martin, and Richard L. Wommack, II, Nashville, Tennessee, for the appellee, James H. Harris, III.

OPINION

F ACTUAL AND P ROCEDURAL B ACKGROUND

Attorney Edward White did legal work for Frank Burnett and Dennis Joslin 2000, Inc. (“Joslin 2000”). In January 2006, White filed a lawsuit in Williamson County, Tennessee, against Burnett and Joslin 2000 to obtain attorney fees alleged to be owed to White. On January 23, 2006, in response to a “joint motion for ex parte entry of agreed judgment,” the trial court entered an agreed final judgment against the defendants in favor of White in the amount of $450,000.1 Joslin 2000 and shareholders in Joslin 2000 (through attorneys) filed motions for relief from the final judgment in March 2006.

In late April 2006, White engaged attorney James Harris, who had represented White previously, to represent him in the Williamson County case and to oppose the setting aside of the judgment White had obtained from the court. Harris represented White at a hearing on April 24, 2006. At this hearing, the court took the matter under advisement and ordered White to submit (within five days) “additional proof confirming that he did not represent any of the parties at the time the Judgment was granted.” On June 2, 2006, the court in Williamson County entered an order vacating the judgment and imposing sanctions against White. The court subsequently denied White’s motion to alter or amend its order vacating the judgment.

Harris and White did not enter into a written agreement concerning attorney fees until August 30, 2006. Harris presented White with the following fee agreement letter:

This letter will reduce to writing our current fee agreement. If after reviewing it you have no further questions about the terms of my representation, please sign the extra copy enclosed.

I have undertaken and will continue to undertake the following work on your behalf: to represent your interests in litigation currently pending in Williamson County, Tennessee, Civil Action No. 06044. Unless otherwise provided, all future work will be done in accordance with this fee letter agreement.

You acknowledge and agree that as of 18 July 2006, you owed me a total of $11,240.00 for services rendered and expenses incurred. ...

The hourly rate for my legal services is Three Hundred Dollars ($300.00). I will also charge for expenses incurred on your behalf. Generally, I will send you at least monthly an itemized statement of fees and expenses associated with my services. Payment is due upon demand or at the time you or I collect money on your claim, whichever comes first.

You agree that any failure to pay fees or expenses or make deposits when demanded will be cause for my termination of this agreement and shall entitle

1 The motion was signed by W hite and Burnett, and the agreed order was signed by W hite, Burnett individually, and Burnett as director and president of Joslin 2000.

-2- me to cease work without further notice. It is understood that you may terminate my services at any time for any reason orally or in writing and my fees will end at the moment of termination of my services.

If I have to bring suit against you to collect any balance owed, you agree to pay as attorney’s fees an additional amount of 33.33% of the balance owed or reasonable attorneys fees and expenses, whichever is less. You also agree that I may bring any legal action to enforce the terms of this agreement in the courts of Nashville, Davidson County, Tennessee. ...

If the above terms are acceptable, please sign and return one of the enclosed copies of this letter. I look forward to working with you.

White signed the letter on August 30, 2006, under the statement that “I understand and accept the terms of this Agreement.”

White sent Harris an e-mail terminating his services in November 2006 but rehired him the same day. In December 2006, Harris filed a motion on White’s behalf in Williamson County asking that the order vacating the judgment be revised to apply only against Joslin 2000 and not against Burnett. The court granted this motion on January 23, 2007.

White also hired Harris to file an “interpleader complaint” in Dyer County chancery court in November 2006 against Darrell Sells. Sells had a case pending in the chancery court of Dyer County against Burnett claiming that Burnett had promised to give Sells Burnett’s share of distributions from an investment in Millenium Properties of the West, LLC (“the Millenium Funds”). In this pending case, the chancery court had enjoined Burnett from disposing of the Millenium Funds. According to White’s interpleader lawsuit, Burnett had promised to give him the Millenium Funds as a lump-sum, non-refundable attorney fee and had, in June 2005, wired the money to White. At the chancery court’s instruction, White had paid these funds, in the amount of $797,397.15, into the registry of the court in November 2005. In his interpleader complaint, White asked the court to return the Millenium Funds to him. In March 2007, White filed a motion for an order directing disbursement of the funds held in the registry of the court.

On May 9, 2007, Harris sent White a memorandum entitled “estoppel letter.” The memorandum states as follows:

-3- As we discussed on the phone, the purpose of this memorandum is to set forth and to acknowledge of [sic] your agreement as to the amount of fees and expenses currently that you currently [sic] owe me for legal services rendered.

As of 30 April 2007 our fee agreement was in full force and effect, I was engaged as your lawyer in various litigation matters, and you owed me $41,533.47 for those services. Also as of that date, you had accepted my legal services and had found them to be a satisfactory discharge [of] all of my professional responsibilities to you as a client.

If you agree with the statements that I have made in this Estoppel Letter, and if you desire that I therefore continue to serve as your lawyer, please so indicate by signing below where appropriate and returning the Estoppel Letter to me.

White signed the memorandum.

On June 5, 2007, after a hearing the Dyer County court denied White’s motion for an order disbursing funds and denied the defendant’s motion to dismiss. White terminated Harris’s services as his attorney.

Current lawsuit

Harris filed this lawsuit against White on August 30, 2007, for breach of contract and demanded judgment in the amount of $46,975.85 plus attorney fees and costs. White counterclaimed and asserted waiver and lack of consideration as defenses.

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