Lakin v. Bloomin' Brands, Inc.

CourtDistrict Court, E.D. Michigan
DecidedOctober 18, 2019
Docket2:17-cv-13088
StatusUnknown

This text of Lakin v. Bloomin' Brands, Inc. (Lakin v. Bloomin' Brands, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lakin v. Bloomin' Brands, Inc., (E.D. Mich. 2019).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

LAKIN, ET AL.,

Plaintiffs, Case No. 17-cv-13088

v. UNITED STATES DISTRICT COURT JUDGE BLOOMIN’ BRANDS, INC., ET AL., GERSHWIN A. DRAIN

Defendants.

______________________________/ OPINION AND ORDER GRANTING MOTION TO ENFORCE ATTORNEY LIEN [275] AND DENYING PLAINTIFFS’ REVISED MOTION TO STRIKE CLAIMED ATTORNEY LIEN [282] I. INTRODUCTION Plaintiffs Mrs. and Mr. Lakin hired Mr. Jonathan C. Hirsch to prosecute a civil action against Bloomin’ Brands Inc., OSI/Flemings, and Gallagher Bassett Services, Inc. (“Defendants”) on August 26, 2017. On January 24, 2019, Plaintiffs terminated Mr. Hirsch. Before the Court is Mr. Hirsch’s Motion to Enforce Attorney Lien. ECF No. 275. He asserts that he is entitled to 65% of the 1/3 contingency fee that he contracted to with Plaintiffs for his work on this matter. Plaintiffs’ Revised Motion to Strike Claimed Lien is also before the Court. ECF No. 282. Plaintiffs contend that they fired Mr. Hirsch for cause and therefore, he is not entitled to any compensation. For the reasons discussed below, this Court finds that Mr. Hirsch is entitled to quantum meruit recovery of attorney’s fees and costs. Mr. Hirsch

is entitled to attorney’s fees that equal 65% of the 1/3 contingency fee that he contracted to with Plaintiffs as well as $3,212.26 in costs. II. FACTUAL BACKGROUND

On March 15, 2016, Plaintiff Mrs. Lakin was dining with her husband, Plaintiff Mr. Lakin, and a friend at Flemings Prime Steakhouse. ECF No. 1, PageID.3. On the way to the bathroom, Mrs. Lakin fell on what was later identified as spilled water on the ground. Id. at PageID.4, 6. Mrs. Lakin

sustained various back, hip, and buttock injuries that she alleges resulted from the slip and fall. Id. at PageID.6. Plaintiffs hired Mr. Hirsch on August 26, 2017. ECF No. 285,

PageID.6664. The parties agreed to pay Mr. Hirsch on a contingency fee basis in which Mr. Hirsch would receive 1/3 of Plaintiffs’ net amount of recovery. Id. Plaintiffs filed their original complaint in this matter on September 20, 2017 against Defendants. ECF No. 1. This Court granted Plaintiffs leave to

amend their complaint to add LaTonya Joplin as a Defendant on September 7, 2018. ECF No. 93. On January 24, 2019, Plaintiffs filed a notice with this Court indicating

that they terminated Mr. Hirsch as their attorney and hired Mark Teicher. ECF No. 160. Defendants Bloomin’ Brands and Flemings filed their Motion for Summary Judgment on January 17, 2019. ECF No. 153. Defendants

Gallagher and Joplin filed their Motions for Summary Judgment on January 18, 2019. ECF Nos. 155, 157. Thereafter, Defendants Gallagher and Joplin reached a settlement with Plaintiffs. ECF No. 258. This Court then granted

in part and denied in part Defendants Bloomin’ Brands and Flemings Motion for Summary Judgment on June 13, 2019. ECF No. 244. This Court’s Order dismissed Mr. Lakin’s loss of consortium claim against Defendants and therefore dismissed Mr. Lakin as a Plaintiff. See id.

On June 22, 2019, Michael D. Elkins filed a Notice of Appearance on behalf of Mrs. Lakin, appearing as co-counsel with Mr. Teicher. ECF No. 262. After this Court ruled on Defendants’ Motion for Summary Judgment,

Plaintiff Mrs. Lakin and Defendants Bloomin’ Brands and Flemings engaged in settlement discussions and reached a settlement agreement. The parties filed an order of dismissal on July 15, 2019. ECF No. 274.1 On July 22, 2019, Mr. Hirsch filed his Motion to Enforce Attorney

Lien. ECF No. 275. Mr. Hirsch’s Motion moves this Court to award him 65% of the 1/3 attorney fee for the case. Id. at PageID.6288. Plaintiffs

1 Mr. Lakin filed a Notice of Appeal of the parties’ July 15, 2019 Stipulated Order of Dismissal on August 7, 2019. ECF No. 279. responded in opposition to Mr. Hirsch’s Motion on August 6, 2019. ECF No. 278. Plaintiffs also filed a Revised Motion to Strike Attorney Lien on August

10, 2019.2 ECF No. 282. Mr. Hirsch filed a Response on August 14, 2019 and an amended Response on August 30, 2019 opposing Plaintiffs’ Motion to Strike. See ECF Nos. 284, 285, respectively. An evidentiary hearing on this

matter was held on September 26, 2019. Plaintiffs filed an argument memorandum on October 2, 2019. ECF No. 293. This Court held a hearing on the Motions the following day, October 3, 2019. III. LEGAL STANDARD

“[T]he law creates a lien of an attorney upon the judgment or fund resulting from his services.” Reynolds v. Polen, 564 N.W.2d 467, 469 (Mich. Ct. App. 1997) (quoting Ambrose v. Detroit Edison Co., 65 Mich.App. 484,

487–88)). Trial courts have discretion to determine whether to impose an attorney lien. Id. “Like other persons who provide services for a fee, an attorney who is discharged before completing contracted-for work is generally entitled to payment for valuable services rendered before the discharge.

Reynolds, 564 N.W.2d at 471.

2 Plaintiffs filed their first Motion to Strike Claimed Lien on June 22, 2019. ECF No. 263. This Court struck Plaintiffs’ original Motion for failing to adhere to the Local Rules requirements for filing briefs. ECF No. 273. Under Michigan law, an attorney on a contingent fee arrangement is entitled to quantum meruit recovery of attorney fees so long as he or she “does

not engage in disciplinable misconduct prejudicial to the client’s case or conduct contrary to public policy[.]” Id. If a client wrongfully terminates their attorney or if the attorney rightfully withdraws, then, the attorney can

recover fees on a quantum meruit basis. See Kensu v. Buskirk, No. 13-10279, 2016 WL 6465890, at *2 (E.D. Mich. Nov. 1, 2016) (citation omitted)). Such a recovery is also available when the attorney is terminated by the client for cause—so long as he or she did not engage in disciplinable misconduct

prejudicial to that client’s case or contrary to public policy. Id. Quantum meruit is an “equitable doctrine” that is generally applied to prevent unjust enrichment. Id. This doctrine means “as much as he [or she] has deserved.”

Id. (quoting Reisenfeld & Co. v. Network Group, Inc., 277 F.3d 856, 862 n.1 (6th Cir. 2002) (quoting Black’s Law Dictionary 1255 (7th ed. 1999)). IV. DISCUSSION A. Mr. Hirsch’s Termination

Plaintiffs argue that they terminated Mr. Hirsch for cause and that, therefore, Mr. Hirsch is not entitled to any fees. ECF No. 278, PageID.6345. They submitted, though, that an evidentiary hearing was appropriate for this

Court to determine Mr. Hirsch’s time and fees, if any, and to determine the actual and reasonable amount owed to Mr. Hirsch, if any. Id. Mr. Hirsch asserts that he did not engage in any unprofessional conduct and that therefore

he is entitled to reasonable attorney’s fees. ECF No. 285, PageID.6634. Plaintiffs advanced several examples of Mr. Hirsch’s alleged professional misconduct in their Revised Motion to Strike Claimed Attorney’s

Lien (ECF No. 282), during the evidentiary hearing on September 26, 2019, and in their Argument Memorandum (ECF No. 293). First and second, Plaintiffs claim that Mr. Hirsch never notified them that Defendants wanted to depose Msgr. Browne and James Gabriel. ECF No.

282, PageID.6421–23. At the evidentiary hearing, Mr. Lakin testified that he was first notified of the deposition on December 6, 2018. Third, Plaintiffs contend that Mr. Hirsch failed to advise defense counsel that Msgr. Browne

was unable to attend the scheduled deposition on December 10, 2018. ECF No. 282, PageID.6423. Mr.

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