Krantz v. Chessick

668 N.E.2d 77, 282 Ill. App. 3d 322, 217 Ill. Dec. 892, 1996 Ill. App. LEXIS 490
CourtAppellate Court of Illinois
DecidedJune 26, 1996
Docket1-95-0455
StatusPublished
Cited by28 cases

This text of 668 N.E.2d 77 (Krantz v. Chessick) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Krantz v. Chessick, 668 N.E.2d 77, 282 Ill. App. 3d 322, 217 Ill. Dec. 892, 1996 Ill. App. LEXIS 490 (Ill. Ct. App. 1996).

Opinion

JUSTICE CERDA

delivered the opinion of the court:

Respondent, Kenneth C. Chessick, appeals from a judgment order of the circuit court of Cook County finding in favor of petitioners, Patricia T. Krantz, executor of the will of Quentin R. Krantz, and Jay S. Bleecker, in a dispute over the amount of attorney fees owed to respondent. Petitioners cross-appeal. We affirm.

I. Facts

Quentin R. Krantz (Krantz) and Bleecker hired respondent, an attorney, to prosecute their claims, and each executed a retainer contract, which stated in part:

"I agree to pay KENNETH C. CHESSICK for services to be rendered pursuant to this retainer and employment, a sum equal to thirty-three and one-third percent (33-1/s%) of any sum which may be received on my said claim and cause of action on trial in Court, or which I receive in settlement thereof *** together with all reasonable and necessary advances, costs and expenses, if any, paid or incurred by the law office.”

Respondent represented Krantz and Bleecker, who were plaintiffs in a lawsuit in federal court. A jury awarded Krantz $160,000 ($60,000 were punitive damages) and awarded Bleecker $20,000 ($10,000 were punitive damages), but no judgment was entered. Respondent filed a motion seeking an award of costs and attorney fees for Bleecker pursuant to the federal civil rights law (42 U.S.C.A. § 1988 (West 1994) (section 1988)). The motion was never ruled upon.

The federal case was settled for $195,000. There was one settlement check for the entire amount, and the release form did not allocate the funds between Krantz and Bleecker. Krantz and Bleecker signed over the settlement check to respondent, who tendered a $71,532.50 check to Krantz ($73,668 minus $2,135.50 in unpaid costs) and a $19,531.50 check to Bleecker ($21,667 minus $2,135.50 in unpaid costs). Based on their belief that they were entitled to more settlement money, Krantz and Bleecker refused the checks, one of which was marked "Final Settlement Krantz” and the other "Final Settlement Bleecker.” Respondent placed the funds in a trust account with interest paid to the Lawyers Trust Fund of Illinois, apparently pursuant to Rule of Professional Conduct 1.15(d) (134 Ill. 2d R. 1.15(d)).

Krantz died and his widow initiated proceedings in the probate court to recover his settlement proceeds from respondent. Bleecker intervened in the case to pursue his claim against respondent. The trial court made an interim order for respondent to pay to Krantz’s estate and to Bleecker the amounts of the checks previously tendered by respondent.

Petitioners moved for summary judgment. Respondent swore to the following in an affidavit in opposition: In a settlement conference in the federal case, the judge indicated that he would reduce Krantz’s punitive damages award to $40,000 and Bleecker’s punitive damages award to $5,000, he would recommend a total $205,000 settlement in which Krantz would receive $120,000 (subject to the contingency agreement), Bleecker would receive $20,000 (not subject to the contingency agreement), and respondent would receive $65,000 in section 1988 attorney fees. Respondent discussed the judge’s recommendation with Krantz and Bleecker, who agreed to the judge’s recommended $205,000 settlement and allocation of the settlement, but the federal defendants would settle only for $195,000.

Respondent prepared a file memorandum that stated that Bleecker and Krantz agreed to settle for $195,000, with Bleecker, Krantz, and respondent each reducing their recovery by $3,333.33 (one-third of the $10,000 difference between the $205,000 and the $195,000), and with the expenses to be divided equally by Bleecker and Krantz. According to respondent’s calculations, Krantz would receive $73,668, Bleecker would receive $21,667, and respondent would receive $99,665.

A trial was held in the probate court after the motion for summary judgment was denied.

Respondent Chessick testified at the trial that in a meeting in October 1988 he informed Bleecker of the possibility of the federal court making an award of section 1988 attorney fees. He told Bleecker that if the court awarded attorney fees, his firm would be entitled to them. They had several discussions about the section 1988 attorney fees, after which Bleecker signed the retainer contact.

Jay Bleecker testified at the trial that there was no discussion about the fee agreement before he signed the retainer contract. Respondent only mentioned section 1988 attorney fees once, after the fee agreement was signed. He and Krantz refused to accept the checks Chessick tendered because the amounts were incorrect.

On December 2, 1994, the trial court entered a judgment order, which stated in part: (1) petitioners Krantz and Bleecker were entitled to $125,729, which represented the settlement amount less a one-third contingency fee payable to respondent and less expenses; (2) petitioners were entitled to judgment against respondent for $9,891.78 in interest on $125,729 for the period from February 11, 1991, through January 25, 1993, plus $34,665 of the funds that were previously sequestered by the court, together with any accrued interest; and (3) petitioners were entitled to their costs of litigation but not attorney fees.

Respondent filed a motion to reconsider and vacate. The motion was denied on January 6, 1995.

Respondent appealed, and petitioners cross-appealed.

II. Respondent’s Appeal

Respondent Chessick argues that the contingency-fee agreement did not address the allocation of section 1988 attorney fees because they were covered by an oral agreement providing that if they were awarded to Bleecker, respondent would be entitled to only the section 1988 fees and not to the one-third contingency fee. Respondent argues that he was entitled to $65,000 in section 1988 attorney fees for Bleecker’s case and to $34,665 as the contingency fee for Krantz’s case. Petitioners argue that the only fee agreement was the written agreement and that respondent was not entitled to $65,000 in section 1988 attorney fees.

The parties disagree over the application of the parol evidence rule, over whether the alleged section 1988 agreement was a modification of the original fee agreement, and over the existence of consideration for the alleged section 1988 agreement, but we do not reach these issues because the trial court heard the evidence and entered judgment in favor of petitioners. The trial court determined that the parties did not enter into an oral agreement concerning section 1988 attorney fees.

Bleecker testified that there never was an agreement that respondent was to get any section 1988 attorney fees. Respondent testified that there were several discussions about section 1988 attorney fees and that there was an oral agreement followed by the execution of the retainer contract. The trial court held that any oral agreement regarding attorney fees that preceded the written retainer contract merged into the retainer contract. The retainer contract governed the terms of the attorney-client relationship in the federal lawsuit.

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Cite This Page — Counsel Stack

Bluebook (online)
668 N.E.2d 77, 282 Ill. App. 3d 322, 217 Ill. Dec. 892, 1996 Ill. App. LEXIS 490, Counsel Stack Legal Research, https://law.counselstack.com/opinion/krantz-v-chessick-illappct-1996.