Krebs v. Mull

727 So. 2d 564, 1999 WL 4527
CourtLouisiana Court of Appeal
DecidedDecember 28, 1998
Docket97 CA 2643
StatusPublished
Cited by13 cases

This text of 727 So. 2d 564 (Krebs v. Mull) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Krebs v. Mull, 727 So. 2d 564, 1999 WL 4527 (La. Ct. App. 1998).

Opinion

727 So.2d 564 (1998)

Wilson KREBS
v.
Thomas W. MULL, Lorraine Mull, and Mull & Mull.

No. 97 CA 2643.

Court of Appeal of Louisiana, First Circuit.

December 28, 1998.

*565 Garic K. Barranger, Covington, LA, Attorney for plaintiff/appellant Wilson Krebs.

Bruce S. Kingsdorf, New Orleans, LA, Frances M. Phares, Covington, LA, Attorney for defendants/appellees Thomas Mull, Lorraine Mull, and Mull & Mull.

Before SHORTESS, C.J., and CARTER and WHIPPLE, JJ.

WHIPPLE, J.

Plaintiff appeals from a judgment maintaining defendants' peremptory exception pleading the objection of no cause of action and dismissing his claim with prejudice. For the following reasons, we reverse and remand.

FACTS AND PROCEDURAL HISTORY

Plaintiff, Wilson Krebs, an attorney licensed to practice law in Louisiana, filed suit against defendants, Thomas Mull and Lorraine Mull, also attorneys licensed to practice law in Louisiana, and Mull & Mull, their law firm, alleging "trade libel," tortious interference with contractual rights and "invasion of business interests." Defendants responded by filing an exception of no cause of action, averring that the petition merely set forth conclusory allegations of defamation and interference with contract and that no cause of action for "invasion of business interests" exists in Louisiana. Thereafter, plaintiff filed a supplemental and amended petition, setting forth more specific factual allegations. The original and amended petitions allege the following factual scenario.

In 1991, plaintiff was approached by two clients who were seeking redress as a result of having contracted Acquired Immune Deficiency Syndrome (AIDS) from infusions of a blood factoring compound used to treat hemophilia. Thereafter, plaintiff associated the law firm of Mull & Mull and defendants, Lorraine and Thomas Mull, to assist in the preparation for trial of these cases, as well as those cases which should subsequently come to plaintiff through his clients' association with other hemophiliacs.

Other similar cases did follow, and in most of the subsequent cases, attorney-client contracts were signed with both plaintiff and defendants. According to plaintiff, from the beginning of his association with defendants in these matters, there existed an understanding that all such cases would be handled jointly by plaintiff and defendants on a 50/50 fee and work basis, with plaintiff and defendants to share equally in any attorney's fees collected.

*566 The petitions further allege that both plaintiff and defendants prepared for and participated in the pilot case, which involved the death of Bradley Cross ("the Cross case"). However, in 1993, disagreements arose between plaintiff and defendants, largely due to defendants' unavailability after defendants established a law office in Hawaii.[1] Additionally, the petitions allege that prior to trial in the Cross case in 1993, without the knowledge or approval of plaintiff, defendant Thomas Mull engaged Charles Kozak, an attorney who is not a member of the Louisiana bar, to become an active participant as an attorney in the Cross trial. Thomas Mull and Kozak prepared for trial without plaintiffs knowledge or consent, thereby excluding plaintiff from active participation in the planning of the trial. On the second day of the Cross trial, Kozak was seated at counsel table without ever having been introduced to plaintiff.

According to the petitions, following the Cross trial, plaintiff continued to prepare the remaining cases with defendants' local representative. However, in late 1993 or early 1994, Thomas Mull set up and conducted a meeting in the office of Karl Duhon, an attorney in Lafayette, with many of plaintiff's and defendants' joint clients present at the meeting. At the meeting, Thomas Mull had discussions with these clients, without plaintiffs knowledge or consent, in which Mull disclosed that he anticipated the entry of other counsel to assist in conducting their cases.

Additionally, the petitions allege that in late 1993 or early 1994, Thomas Mull negotiated with Kozak and others to file a federal action in the Eastern District of Louisiana involving at least three clients who "emanated" from the original group which had been represented by plaintiff and defendants for several years, in addition to clients from other jurisdictions. Additionally, Thomas Mull refused to give plaintiff any information regarding the federal cases and had the cases sealed by order of court, thereby depriving plaintiff of any participation in the federal cases. The petitions further allege that these cases were subsequently consolidated with a federal class action in Illinois and that in preparation of these cases, Thomas Mull utilized the work product accumulated by plaintiff in concert with defendants, including discovery, pleadings and depositions paid for by plaintiff.

Finally, in October of 1995, plaintiff became aware that Thomas Mull was seeking to disassociate himself from plaintiff in the hemophilia-AIDS cases, through a letter Mull sent to plaintiff. Enclosed with the letter to plaintiff was a copy of a letter Mull had already sent to their joint clients, which, according to the allegations of the petitions, "invited" all of the joint clients to discharge plaintiff from representation. A copy of the letter Mull sent to the parties' joint clients was attached to the original petition. In the letter, Mull stated that his relationship with plaintiff had deteriorated to the point where he could no longer effectively work with plaintiff as co-counsel; that because of the complexity and expense of the cases, it may become necessary for Mull to associate other counsel; that he was precluded from associating other counsel as long as plaintiff remained co-counsel; and that he was, consequently, asking the joint clients to choose between representation by defendants or plaintiff. However, the letter Mull sent to the joint clients was dated eight days earlier than the letter Mull sent to plaintiff, enclosing a copy of the letter sent to the clients. After Mull sent this letter to the joint clients, ten of seventeen clients jointly represented by plaintiff and defendants discharged plaintiff.

Based on these factual allegations, plaintiff contended that he had set forth causes of action for "trade libel," tortious interference with contract, "invasion of business interest" and unjust enrichment.

In addition to these allegations, the petitions alleged that upon relocating to Hawaii, defendants enlisted new hemophilia-AIDS clients in Hawaii on their own behalf and to the exclusion of plaintiff. Plaintiff averred that he was entitled to a share of any fees acquired by defendants in their pursuit of "any and all" hemophilia-AIDS related cases.

*567 After plaintiff filed the supplemental and amended petition, defendants' exception of no cause of action was reset for hearing. Following the hearing, the trial court issued written reasons for judgment, concluding that although several claims were alleged, each of the claims related to tortious interference with contractual rights; the cause of action for interference with contractual rights was intended to be very narrow; and there was no clear precedent from the Louisiana Supreme Court recognizing this cause of action in the practice of law and attorney-client relationships. The trial court stated that without clear precedent from the Supreme Court, it was unwilling to find that this cause of action would exist under the factual situation presented.

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Cite This Page — Counsel Stack

Bluebook (online)
727 So. 2d 564, 1999 WL 4527, Counsel Stack Legal Research, https://law.counselstack.com/opinion/krebs-v-mull-lactapp-1998.