Kimm v. Kyu Sung Cho

706 F. App'x 1
CourtCourt of Appeals for the Second Circuit
DecidedAugust 23, 2017
Docket16-1372-cv (L)
StatusUnpublished
Cited by5 cases

This text of 706 F. App'x 1 (Kimm v. Kyu Sung Cho) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kimm v. Kyu Sung Cho, 706 F. App'x 1 (2d Cir. 2017).

Opinion

SUMMARY ORDER

Defendant Kyu Sung Cho appeals from an award of summary judgment in favor of plaintiff Michael Kimm on Kimm’s state-law breach-of-contract and account-stated claims arising from Kimm’s 14-month defense of Cho and his corporation in New Jersey litigation. The parties principally dispute both the validity of the contract at issue, an unsigned April 2012 retainer agreement (the “Agreement”), and whether Cho timely objected to billing statements. 1 We assume the parties’ familiarity with the facts and record of prior proceedings, which we reference only as necessary to explain our decision to affirm in part and vacate in part.

1. Summary Judgment

We review de novo an award of summary judgment, and in so doing, we “construe the facts in the light most favorable to the non-moving party and ... resolve all ambiguities and draw all reasonable inferences against the movant,” Walsh v, N.Y.C. Housing Auth., 828 F.3d 70, 74 (2d Cir. 2016) (internal quotation marks omitted).

a. Contract Validity

Although unsigned, the Agreement at issue may be enforceable where objective evidence establishes the parties’ agreement to, and intent to be bound by, its terms. See, e.g., Flores v. Lower E. Side Serv. Ctr., Inc., 4 N.Y.3d 363, 368-69, 795 N.Y.S.2d 491, 496-96, 828 N.E.2d 593 (2005); Weichert Co. Realtors v. Ryan, 128 N.J. 427, 435, 608 A.2d 280, 284 (1992). 2 Partial performance by one party and the acceptance of such performance by another can satisfy this requirement. See R.G. Grp., Inc. v. Horn & Hardart Co., 751 F.2d 69, 75-76 (2d Cir. 1984) (“[Pjartial performance is an unmistakable signal that one party believes there is a contract; and the party who accepts performance signals, by that act, that it also understands a contract to be in effect.”). That is the case here.

In February 2012, Cho and Dongbu were named as defendants in a federal action in New Jersey. Cho solicited Kimm’s representation in that matter. On April 3, 2012, and again on April 6, 2012, Kimm sent Cho the challenged Agreement, which Cho received. The Agreement states, inter alia, that Cho and Dongbu would pay Kimm a $3,000 monthly retainer fee for general counsel services and, “[smarting April 10, 2012 ... [a] rolling monthly payment of US $10,000.00” to be applied against litigation fees, which would *3 be “discounted ... equal to 70 percent of billed statements, as and when billed from time to time” or “periodically, as events warrant.” J.A. 221-22. Kimm represented Oho and Dongbu in the New Jersey action until November 2013, Oho paid Kimm $133,000, Like the district court, we conclude that such conduct manifests the parties’ consent to the Agreement and their intent to be bound by its terms.

In urging otherwise, Oho does not dispute that he retained Kimm and agreed to make monthly payments of $3,000 and $10,000. Nevertheless, he submits that he did not agree to make unspecified larger payments. Cho points to no evidence that affirmatively shows the parties’ agreement to Kimm providing representation at a maximum monthly rate of $13,000, Instead, he argues that evidence inconsistent with the Agreement raises factual issues as to the parties’ agreement and intent, precluding summary judgment. We are not persuaded.

First, Cho argues that Kimm’s failure to provide any statements showing litigation fees in excess of $10,000 per month until July 2013 undermines an inference of agreement to pay such fees. Even assuming that the five record invoices dated June 30, 2012, September 30, 2012, December 31, 2012, March 30, 2013, and June 30, 2013, were not sent until July of 2013, such conduct raises an issue of contract performance, not formation. In short, did Kimm’s delay breach his obligation to send hourly fee bills “from time to time,” or “periodically, as events warrant”? J.A. 221-22. Delayed billing in July 2013 would not, however, admit an inference that the parties reached a retainer agreement on payment terms other than those in the Agreement that was being substantially performed.

Second, Cho contends that Kimm’s failure to mention billing statements in his correspondence with Cho, instead addressing only the monthly fees, is further evidence that the parties never agreed to more than the latter. See, e.g., J.A. 2016 (“Our monthly agreement is a tight budget. We received only a partial $5k check last month.”); id. at 2019 (“Any chance of getting paid this month? We are still doing a lot of work.”). In fact, Kimm’s communication's were not so limited. An October 22, 2012 email from Kimm to Cho observing that Kimm had “not received a case fee check for September] and ha[d] not received any check for this month,” expressly advised that the firm was “doing much more work than the monthly rolling retainer.” Id. at 2016 (emphasis added). Thus, Kimm’s correspondence does not support Cho’s claim that the parties agreed to payment only of the stated monthly fee for litigation services.

In sum, Kimm’s partial performance under the Agreement and Cho’s acceptance of that performance demonstrates the parties’ acceptance of the Agreement and intent to be bound by its terms. 3 Cho has failed to adduce any evidence supporting an inference that he agreed to pay only the stated monthly fees for litigation services or that Kimm provided services with that understanding. Accordingly, like the district court, we conclude that the record establishes that the Agreement at issue is binding.

*4 b. Breach of Contract

Under New York law, attorneys suing for the breach of retainer agreements must prove, in addition to breach and damages, that the agreement was “fair, reasonable, and fully known and understood by” the client. Albunio v. City of New York, 23 N.Y.3d 65, 71, 989 N.Y.S.2d 1, 4, 11 N.E.3d 1104 (2014) (internal quotation marks omitted). Cho does not specifically challenge the district court’s determination that the Agreement here was fail-, reasonable, and understood. Thus, there is no triable issue of fact.

As the district court observed, the Agreement is only three pages long, sets forth unambiguous terms in plain language, and specifies hourly rates consistent with those prevailing in the jurisdiction. See Simmons v. N.Y.C. Transit Auth., 575 F.3d 170, 175-76 (2d Cir. 2009) (stating that district courts should ordinarily use in-district hourly rates in calculating reasonable attorney’s fees).

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706 F. App'x 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kimm-v-kyu-sung-cho-ca2-2017.