Jose Marin v. Constitution Realty v. David B. Golomb

71 N.E.3d 530, 28 N.Y.3d 666
CourtNew York Court of Appeals
DecidedFebruary 9, 2017
Docket2
StatusPublished
Cited by32 cases

This text of 71 N.E.3d 530 (Jose Marin v. Constitution Realty v. David B. Golomb) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jose Marin v. Constitution Realty v. David B. Golomb, 71 N.E.3d 530, 28 N.Y.3d 666 (N.Y. 2017).

Opinion

OPINION OF THE COURT

Chief Judge DiFiore.

Plaintiffs Jose and Ada Marin obtained an $8 million settlement for serious injuries Jose Marin sustained when he fell approximately 40 feet while working on a building in Manhattan. This appeal concerns a fee dispute between plaintiffs’ attorney of record in that action, Sheryl Menkes, and two attorneys she engaged to assist her: Jeffrey A. Manheimer and David B. Golomb. Based on the plain language of their respective fee-sharing agreements, we conclude that Manheimer is entitled to 20% of net attorneys’ fees and Golomb is entitled to 12% of net attorneys’ fees. We therefore modify the Appellate Division order accordingly.

I

A.

In February 2009, Menkes engaged Manheimer to act as co-counsel and provide advice in the action. 1 Their written agreement provided that Manheimer would receive 20% of net attorneys’ fees if the case settled before trial and 25% once jury selection commenced. Neither attorney informed the clients of Manheimer’s involvement, although Manheimer believed Men-kes had done so. The failure to inform the clients violated the former Code of Professional Responsibility DR 2-107 (a) (22 NYCRR 1200.12 [a]) and the current Rules of Professional *670 Conduct (22 NYCRR 1200.0) rule 1.5 (g). 2 In June 2009, the agreement was amended to specify that Manheimer would act solely in an advisory capacity and would “not contact the client[s], defendants!’] experts or the [c]ourt” without Menkes’s permission. The fee arrangement was unchanged. In August 2009, Menkes wrote to Manheimer unilaterally discharging him and advising him that his portion of the fees would be determined on a quantum meruit basis. Manheimer did not respond to Menkes; he did no further work on the case.

B.

In August 2012, Menkes obtained partial summary judgment on liability under Labor Law § 240 (1) on plaintiffs’ behalf. She later sought assistance from Golomb for an upcoming mediation—scheduled for May 20, 2013—and a potential trial on damages. In March 2013, Menkes and Golomb entered into a written agreement, which stated, in relevant part: 3

“I [Golomb] have agreed to review the file, provide whatever services are needed, with your and your office’s assistance, to prepare it for the mediation and to handle the mediation. For those services, I will be [sic] receive twelve (12%) percent of all attorneys’ fees whenever the case is resolved, whether by settlement, verdict after trial or appeal, calculated after the attorneys have been reimbursed for all expenses laid out. This percentage due shall become fixed and owed upon execution of this agreement.
“If the case does not resolve at the mediation, presently scheduled for May 20, 2013, then I will be responsible, with your and your office’s assistance as requested, for preparing for trial and trying the case. After such mediation, I will be entitled to forty (40%) percent of all attorneys’ fees whenever the case is resolved, whether by settlement, verdict after trial or appeal, calculated after the attorneys have been reimbursed for all expenses laid out. In the event this matter has to be tried, the total of *671 all attorneys’ fees to which I am entitled for all of the services set forth, including mediation, shall be forty (40%) percent of all attorneys’ fees whenever the case is resolved, whether by settlement, verdict after trial or appeal, calculated after the attorneys have been reimbursed for all expenses laid out.”

The mediation began on May 20, 2013 at 2:00 p.m. Although the parties’ original settlement positions were approximately $17 million apart, by the time the session concluded at approximately 7:00 p.m., the gap was about $1.5 million. Since the excess insurance carriers lacked authority to increase their offer at that time, the mediation session ended without a settlement agreement. On May 22, 2013, and during the following week, the mediator maintained contact with both Golomb and the carriers. On May 31, 2013, the mediator telephoned Golomb to convey a settlement offer of $8 million, which Golomb accepted on plaintiffs’ behalf. The final terms of the settlement agreement were memorialized in a June 5, 2013 letter.

C.

Menkes moved for an order establishing Golomb’s attorneys’ fees at 12% of net attorneys’ fees and, after Manheimer intervened, Menkes also moved for an order setting his fees on a quantum meruit basis. Manheimer and Golomb each cross-moved: Manheimer to fix his fee at 20% of net attorneys’ fees and Golomb, as relevant here, to fix his fee at 40% of net attorneys’ fees. 4

Supreme Court denied Menkes’s motion and granted both cross motions (42 Mise 3d 1227[A], 2014 NY Slip Op 50206[U] [Sup Ct, NY County 2014]). As to Manheimer, Supreme Court held that both the February and June 2009 agreements unequivocally and unambiguously entitled Manheimer to 20% of net attorneys’ fees. Supreme Court rejected Menkes’s argument that because plaintiffs were never notified of and never consented to Manheimer’s role as cocounsel, the agreements were unenforceable. As to Golomb, Supreme Court concluded that the plain language of the agreement provided that Golomb was entitled to 40% of net attorneys’ fees because the case did not settle at the mediation session on May 20, 2013.

On appeal, the Appellate Division affirmed, with two Justices dissenting (128 AD3d 505 [1st Dept 2015]). That Court *672 unanimously agreed that Manheimer was entitled to 20% of net attorneys’ fees (see id. at 512, 513). With respect to Golomb, the Court concluded that the plain language of the agreement between Golomb and Menkes provided that Golomb was entitled to 40% of net attorneys’ fees because: (1) the agreement referenced “ ‘the mediation,’ not the ‘process’ of mediation,” (2) “the mediation” was defined as the one “ ‘presently scheduled for May 20, 2013,’ ” and (3) nothing in the agreement “conditioned] Golomb’s entitlement to the higher fee upon his commencing or taking any steps to prepare for trial” {id. at 509-510).

Two dissenting Justices would have held that the plain language entitled Golomb to only 12% of the attorneys’ fees, noting that “the mediation,” as used in the first substantive paragraph of the agreement, was not limited to a single date or session and that the words “presently scheduled for May 20, 2013,” were descriptive, not limiting, because they were placed between commas {id. at 515-516). According to the dissent, the Court’s analysis failed to give weight to the language requiring Golomb to “ ‘prepar[e] for trial and try[ ] the case’ ” in order to be entitled to the 40% fee {id. at 515).

Menkes appealed as of right pursuant to CPLR 5601 (a), which brings up for our review Menkes’s agreements with both Manheimer and Golomb.

II.

We conclude that Menkes s agreements with Manheimer are enforceable and entitle Manheimer to 20% of net attorneys’ fees.

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Cite This Page — Counsel Stack

Bluebook (online)
71 N.E.3d 530, 28 N.Y.3d 666, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jose-marin-v-constitution-realty-v-david-b-golomb-ny-2017.