Kienlen v. Golegos

2019 IL App (2d) 180601-U
Appellate Court of Illinois·Decided October 22, 2019·No. 2-18-0601·Unpublished

Opinion

No. 2-18-0601

Order filed October 22, 2019

NOTICE: This order was filed under Supreme Court Rule 23 and may not be cited as precedent by any party except in the limited circumstances allowed under Rule 23(e)(1).

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT

J. LAURENCE KIENLEN, P.C., ) Appeal from the Circuit Court ) of Du Page County.

Plaintiff-Appellant, )

)

v. ) No. 17-AR-447 )

JOHN GOLEGOS, MICHELE GOLEGOS, ) and GOLREN ENTERPRISES, INC., ) Honorable ) Robert W. Rohm,

Defendants-Appellees. ) Judge, Presiding.

JUSTICE BURKE delivered the judgment of the court.

Justices Zenoff and Jorgenson concurred in the judgment.

ORDER

¶1 Held: The manifest weight of the evidence supports the trial court’s judgment in all respects except its findings that Kienlen performed estate planning services in violation of the Fraudulent Transfer Act (Act) and that the parties had no agreement for estate planning services. The trial court did not abuse its discretion by not including costs of deposition transcripts in the judgment.

Affirm in part, reverse in part, and remand with directions.

¶2 Plaintiff, J. Laurence Kienlen, P.C., sued its former clients, defendants, John and Michele Golegos, and Golren Enterprises, Inc., for the recovery of attorney fees billed by plaintiff from two invoices dated October 14, 2016, and October 26, 2016. The trial court ruled that none of the fees were owed from the October 26 invoice, as there was no agreement between the parties. As to the

October 14 invoice, the court reduced the balance amount of $33,673 by adopting defendants’ summary of objections, and it granted judgment in favor of plaintiff in the amount of $18,419. Plaintiff appeals the trial court’s judgment concerning the amount of attorney fees owed to it by defendants. We affirm in part, reverse in part, and remand the cause with directions.

¶3 I. FACTS

¶4 Plaintiff filed a four-count complaint. Count I alleges breach of contract against defendants for attorney fees and expenses of $33,673, and count III alleges breach of contract against Michele for attorney fees and expenses of $3862. Counts II and IV alleged account stated, but plaintiff’s appeal rests only on the breach of contract counts.

¶5 All 12 of plaintiff’s exhibits, including plaintiff’s two invoices were entered into evidence by agreement of the parties. The court heard the following evidence at trial.

¶6 A. October 14, 2016, Invoice

¶7 John and Michele are the shareholders of Golren, which operates the Corfu Restaurant in St. Charles, Illinois. George Alimisis was a shareholder. Defendants and George (who is no longer involved in the matter as he was later discharged in bankruptcy) were sued in federal court by some of their former employees in 2012 (the Maldonado lawsuit). The Maldonado suit alleged various violations of the Illinois Minimum Wage Law and the Federal Fair Labor Standards Act. Defendants were represented by George Bellas and William Boznos of the law firm of Bellas & Wachowski (B & W). The plaintiffs in the Maldonado suit were represented by attorney John Ireland.

¶8 On November 4, 2014, Michele contacted Kienlen, stating that she and defendants terminated B & W because the firm had entered into a settlement agreement that she and the other defendants had not authorized. They wanted to retain the services of plaintiff to vacate

the settlement that they had not authorized. The matter had been settled in the amount of $66,000 for the federal plaintiffs, but the issue of Ireland’s fees had been continued for further determination. It was subsequently determined that he was requesting fees of $276,000.

¶9 During his initial conversation with Michele, Kienlen reviewed the federal court’s docket via the internet, advised Michele that almost 200 documents had been filed in the case, discussed that Ireland had obtained leave of court to file a motion to enforce the settlement agreement, and discussed that Kienlen would bring in additional legal representation of James H. Wolf (JHW) and James M. Wolf (JMW), and discussed that the attorneys’ hourly rates were $300, which would begin immediately. According to Kienlen’s testimony, Michele agreed to everything discussed during the conversation.

¶ 10 A meeting was scheduled for November 6, 2014, which was attended by Kienlen, JMW, Michele, and John. They talked about the Maldonado suit and the anticipated course of action, including the substitution of Kienlen, JHW, and JMW for B & W. They also talked about the fact that B & W had billed defendants about $84,000 to represent them, that another invoice was pending for fees in the additional amount of $86,317, and that they feared Ireland would be claiming fees far in excess of the fees billed by B & W.

¶ 11 On November 7, 2014, John, Michele, Golren, and George executed an engagement letter, retaining plaintiff’s legal services, as well as the legal services of JHW and JMW. The letter stated in relevant part:

“We have agreed that we will be representing you in all matters pertaining to your disputes with attorneys George S. Bellas, William P. Boznos and/or their firm, [B & W]

with regard to their representation of you concerning the [Maldonado] ‘lawsuit’ filed ***

against you in the United State District Court for the Northern District of Illinois, *** as well as representing you, going forward, in all matters pertaining to said lawsuit.

As you know from our initial conversations, I will be working with lawyers from a law firm located in Chicago, Wolf & Tennant. The lawyers are [JMW], whom you met yesterday, and his father, [JHW]. We will charge you for our fees on an hourly basis by the actual time expended by us. Our current rates are $300.00 per hour. In any event, we will endeavor to provide you with cost effective representation.

***

We will send you periodic statements for services rendered and you agree to pay the amount due immediately upon receipt. If you have any questions about a statement, please call them to our attention promptly, but in no event no later than 30 days after you receive the statement. Your statement will reflect day, task, and time of attorney.”

¶ 12 On December 12, 2014, defendants executed a written settlement authorization to settle the Maldonado suit for $132,000.

¶ 13 The October 14, 2016, invoice submitted into evidence stated that from November 4, 2014, to October 13, 2016, plaintiff provided 144.50 hours of legal services and incurred $323 of expenses. After crediting defendants for all money plaintiff had received, the invoice totaled $33,673 for legal services.

¶ 14 As defendants questioned a majority of the charges on plaintiff’s October 14 invoice, their counsel cross-examined Kienlen regarding the reasonableness of many of the charges. Counsel questioned Kienlen as to the amount of time it took to review certain documents. Counsel also questioned him regarding whether Kienlen had inflated some of the charges by double billing for

such items as phone calls between Kienlen and JMW or JHW, or whether it was “cost effective” for such things as Kienlen’s review of work already prepared by JMW or JHW.

¶ 15 Defense counsel questioned Michele regarding the October 14 invoice. Michele clarified that she did not understand that she would be paying $900 an hour for all of the attorneys working on the case and that she never saw any one of the bills through the course of two years of working on the matter, and therefore, she was never able to review what work was completed to support the fees.

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