Kathy May Huber v. Cecilia Eubanks

197 So. 3d 861, 2015 Miss. LEXIS 83, 2015 WL 574718
CourtMississippi Supreme Court
DecidedFebruary 12, 2015
Docket2012-CT-00030-SCT
StatusPublished
Cited by4 cases

This text of 197 So. 3d 861 (Kathy May Huber v. Cecilia Eubanks) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kathy May Huber v. Cecilia Eubanks, 197 So. 3d 861, 2015 Miss. LEXIS 83, 2015 WL 574718 (Mich. 2015).

Opinions

ON WRIT OF CERTIORARI

DICKINSON, Presiding Justice, for the Court:

¶ 1. Attorneys representing the admin-istratrix of an estate settled wrongful-death claims under two insurance policies without filing a wrongful-death lawsuit. The proceeds of the settlement of the first policy were distributed equally to the wrongful-death beneficiaries. The attorneys submitted the proceeds of the second policy to the chancery court and moved for an unequal distribution, arguing that two half-siblings should recover nothing or, if allowed to recover, less than the three other claimants.

¶ 2. The chancellor determined that the half-siblings were entitled to recover, and that she had no authority to apportion the wrongful-death settlement proceeds unequally. She divided the proceeds equally among the wrongful-death beneficiaries after awarding attorneys’ fees of forty percent of the amount of recovery. Two of the beneficiaries argued that they should not be required to pay attorneys’ fees because the attorneys had made numerous attempts, first to exclude them from any recovery, and then to reduce their share.

¶ 3. The Court of Appeals affirmed the chancellor’s determination that the half-siblings were entitled to an equal distribution but remanded for factual findings on the amount of attorneys’ fees they should be required to pay.1 We agree with the Court of Appeals and the trial court that the proceeds must be equally divided. On the issue of attorney fees, four justices on this Court would hold that, because the attorneys had an actual conflict of interest with the half-siblings and acted adverse to their interests; and because they could not satisfy the requirements for quantum me-ruit, they were not entitled to recover any attorneys’ fees from the half-siblings shares. Four justices would affirm the Court of Appeals.

FACTS AND PROCEDURAL BACKGROUND

¶ 4. The facts necessary to adjudicate the issues presented are not in material [863]*863dispute. In 2006, sixteen-year-old Dane Eubanks was killed in an automobile accident. His mother, Cecilia Borries, contracted with David E. Kiyhet Sr. to: .

provide legal services in connection with a Wrongful Death occurring on- February 28, 2006 in- Jackson County Mississippi, Law Firm shall provide those legal services reasonably required to represent Client....

Cecilia agreed to pay Kiyhet a $5,000 retainer and $150 per hour and, should additional insurance be found, “forty-percent (40%) of all monies or equivalent collected in the event of settlement or trial” in lieu of the hourly rate. The contract between Cecilia and Kiyhet did not purport to grant Kiyhet the authority to represent anyone other than “Client” — defined in the contract as Cecilia Borries.

¶ 5. After she was appointed adminis-tratrix of Dane’s estate, Cecilia petitioned the chancery court to approve “the Legal Contract between the Petitioner [Cecilia, as “Administratrix of the Estate of DANE RICHARD EUBANKS”] and the Honorable DAVID E. KIYHET, SR.” No mention was made of the wrongful-death beneficiaries.

¶ 6. At the time of his death, Dane was unmarried and had no children, so any distribution of the statutory wrongful-death damages must be distributed in equal shares to the second tier of statutory wrongful-death beneficiaries, which includes his mother, father, sisters and brothers, including half-blood siblings.2 Because Dane’s father had, played no role in'Dane’s life, Kiyhet filed a motion seeking to terminate his parental rights and to preclude him from sharing in the wrongful-death benefits.

¶ 7. On August 7, 2008, the chancellor granted the motion, declaring that David’s parental rights were terminated, and that he was “precluded, enjoined!,] and restrained from being a beneficiary of any Wrongful Death proceeds that may be recovered due to the wrongful death of DANE RICHARD EUBANKS.” Because no appeal was taken from this ruling, we shall not address it.

¶8. At this point, Cecilia and Kiyhet learned of the' possibility that Dane’s -father had fathered two children — David Eu-banks Jr. and Allison Eubanks — -with Kathy May Huber. On December 12, 2008, Huber made an appearance in the chancery court proceedings through counsel, Jane Perry, on behalf of David Jr. and Allison. A DNA test confirmed that David Jr. and Allison were David1 Sr.’s children and Dane’s half-siblings.

¶ 9. So Dane’s statutory wrongful-death beneficiaries at the time of his death were his mother, Cecilia, his father, David Eu-banks (whom the chancellor had precluded from recovery), a brother, Seth, a maternal half-brother, Aiden Borries, and a paternal half-brother, David Eubanks Jr. and half-sister, Allison Eubanks.

¶ 10. On March 11, 2009 — after obtaining a chancery-court determination of Dane’s wrongful-death beneficiaries (Cecilia, Seth, Aiden, David Jr., and Allison), but before filing a wrongful-death lawsuit — Kiyhet reached a settlement in the amount of $100,000 with Allstate Insurance Company, the ‘tortfeasor’s liability insurance carrier. This settlement was approved by the chancellor on September 29, 2009. From the $100,000 proceeds, Kiyhet received $40,000 in attorney fees, and the remaining funds, after payment of "expenses, were equally distributed to Dane’s wrongful-death beneficiaries, as determined in the chancellor’s March 11, 2009 order. The distribution of these settle[864]*864ment proceeds is not at issue in the case before us.

¶ 11. Meanwhile, Cecilia — who was married to Dane’s stepfather, Kenneth Borries — filed an uninsured-motorist claim against- her husband’s commercial-vehicle insurance carrier, Allstate, claiming that Dane was covered as a “foster child” under that policy. Allstate disagreed and filed a declaratory-judgment action in the United States District Court for the Southern District of Mississippi, asking the court to declare that'no uninsured-motorist coverage existed for Dane under Borries’s Allstate-policy. The Estate and Cecilia filed a counterclaim arguing that Dane was covered by Borries’s policy and that he was entitled to uninsured/underinsured-motorist insurance coverage.

¶ 12. Kiyhet associated Vincent Castig-liola Jr. as cocounsel to assist with the uninsured-motorist litigation. against Allstate. Kdyhet shared with Castigliola the $40,000- fee already collected under the $100,000 policy and agreed to split future attorneys-’ fees. The matter proceeded in federal court, with the Allstate attorneys battling Kiyhet and Castigliola. We think -it important to point out that Cecilia’s attorneys never claimed to be representing David Jr.’s or Allison’s interests. During a later argument before the chancellor, Castigliola stated:

I represented as co-counsel with Mr. Kiyhet the administratrix of the estate and Cecilia was sued individually and the pleadings are attached more than once as exhibits. My representation dealt with the defense of the declaratory judgment action and the counterclaim directly asserted against Allstáte Indemnity Company_ .

¶ 13. Cecilia and Allstate eventually agreed to settle the matter for $250,000. But when the settlement was referred to the chancery court for approval and distribution of proceeds, Cecilia’s attorneys strenuously objected to an equal distribution of the proceeds.

¶ 14. First, they argued that the DNA test results had been presented too late to satisfy Section 91-1-15’s statute of limitations to establish paternity.

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Bluebook (online)
197 So. 3d 861, 2015 Miss. LEXIS 83, 2015 WL 574718, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kathy-may-huber-v-cecilia-eubanks-miss-2015.