Leighton v. Forster

8 Cal. App. 5th 467, 213 Cal. Rptr. 3d 899, 2017 WL 527320, 2017 Cal. App. LEXIS 100
CourtCalifornia Court of Appeal
DecidedFebruary 9, 2017
DocketA145601
StatusPublished
Cited by19 cases

This text of 8 Cal. App. 5th 467 (Leighton v. Forster) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leighton v. Forster, 8 Cal. App. 5th 467, 213 Cal. Rptr. 3d 899, 2017 WL 527320, 2017 Cal. App. LEXIS 100 (Cal. Ct. App. 2017).

Opinion

Opinion

RUVOLO, P. J.—

I.

INTRODUCTION

Sheryl Kathryn Leighton (appellant) sued Rochelle Forster (Rochelle) 1 for breach of an attorney fee contract and an account stated, seeking damages in excess of $114,000. In granting Rochelle summary judgment, the trial court found, among other things, that (1) an engagement letter appellant e-mailed to Rochelle’s husband Bob was not a valid contract because it was never signed (see Bus. & Prof. Code, § 6148 (section 6148)) 2 and (2) any claim for payment of the reasonable value of appellant’s services was barred by the two-year statute of limitations. (See Code Civ. Proc, § 339, subd. 1.)

Appellant contends there are triable issues of material fact regarding Rochelle’s liability for appellant’s unpaid attorney fees because she produced evidence that, before Bob passed away, appellant and Bob negotiated a fee arrangement that either satisfied the requirements of section 6148 or was exempt from those requirements. We affirm the judgment.

*471 II.

STATEMENT OF FACTS

A. The Underlying Legal Dispute

In 1984, Rochelle and Bob Forster executed an agreement with Bob’s business associate Al Rheinheimer and Al’s wife Sophie to purchase jointly a single-family home in Berkeley (the Berkeley house). Rochelle did not like the idea of buying the Berkeley house with the Rheinheimers, but she agreed to the arrangement because Al convinced Bob that a joint purchase had financial and tax advantages, and Bob assured Rochelle they could buy out the Rheinheimers’ interest after a couple of years. In the meantime, the agreement was that each couple would be responsible for half the Berkeley house expenses, and that the Forsters would reside in the house and pay rent to the Rheinheimers, who would collect all the money and pay the mortgage, taxes and insurance. In the late 1980’s, the Forsters made overtures to buy out the Rheinheimers, but Al convinced them that it was not a good time to do that.

In 2002, Bob told Rochelle that Al Rheinheimer had committed identity theft against him. Bob made this discovery after his bank turned down a request to increase the credit line for his business. Al, who prepared Bob’s tax returns, had used Bob’s personal information to open three credit cards and incurred balances totaling approximately $50,000. Bob told Rochelle that when he confronted Al about the matter, Al admitted what he had done and immediately paid off the credit card balances. In light of this incident, the Forsters agreed they needed to buy out the Rheinheimers, but Al refused to cooperate.

In 2004, Rochelle learned about two decisions Bob had made which impeded the Forsters’ efforts to buy out the Rheinheimers’ interest in the Berkeley house. First, after the bank denied Bob’s request to increase his business line of credit because of Al’s identity theft, Bob borrowed $100,000 from Al. Second, on Al’s advice, Bob had been writing checks for the Forsters’ share of the monthly expenses for the Berkeley house to two individuals other than Al, neither of whom the Forsters knew. 3 Rochelle was very upset by these facts, which made it difficult for her and Bob to discuss the Rheinheimers without arguing. She was also busy with her own job and raising a young son, so she took the position that it was Bob’s responsibility to fix their problems with the Rheinheimers.

*472 B. Appellant’s Contract Work for Robert James

Meanwhile, sometime in 2004, a semiretired attorney named Robert James agreed to help the Forsters resolve their dispute with the Rheinheimers. James was the Forsters’ neighbor and Bob’s good friend. There is no evidence in this record that James charged the Forsters for his personal legal assistance.

When James agreed to help the Forsters, he had a preexisting employment relationship with appellant, who worked for him as a contract attorney. Appellant’s employment relationship with James was governed by a letter agreement drafted by appellant and signed by both James and appellant on February 14, 2002 (the 2002 Letter Agreement).

In the 2002 Letter Agreement, appellant agreed to provide James with “legal research and writing services” and such other services as they were to subsequently “agree upon from time to time.” Appellant’s terms included a billing rate of $75 per hour and a right to charge for unspecified out-of-pocket costs she incurred to complete assignments she received from James. Appellant agreed to issue invoices on the last date of the month unless James requested otherwise, and James agreed to pay these invoices within 15 days. In this regard, the 2002 Letter Agreement stated: “You will be responsible for payment of my invoices without regard to whether your clients pay you for the work I have performed and without regard to the outcome of any motion, trial, appeal, arbitration, mediation, settlement negotiation, or other proceeding or transaction.”

The 2002 Letter Agreement also disclosed that appellant did not carry professional liability insurance and that her services to James did not include interacting with his clients. On this later point, appellant stated: “You may disclose to your clients that I am performing work for you on their behalf. You understand, however, that I will not engage in any verbal or written communications with your clients, including conference calls or meetings. Neither you nor your staff may give any client my telephone number, fax number, e-mail address, or mailing address or otherwise authorize a client to communicate directly with me.”

Between October 2004 and April 2005, appellant issued monthly invoices to James for work she did for him on “Forster v. Rheinheimer.” During that period, her monthly charges ranged from $238 (in Oct. 2004) to $1,455 (in Mar. 2005). All of these invoices were paid by Bob Forster.

*473 Between November 2005 and March 2007, appellant submitted invoices to James for her work on the Forster case almost every month. 4 During this period, James paid appellant’s September 2006 invoice for $3,459.50. All other payments toward these invoices were made by Bob Forster. During 2007, appellant’s invoices were significantly higher than in prior months, she began submitting more than one invoice per month, and she started carrying a balance forward reflecting prior unpaid invoices.

An invoice dated March 2, 2007, appears to be the last bill that appellant submitted to James for her work on the "'Forster' matter. The total amount due was $8,953.31. Of that total, $3,045 was for hourly services during the last two weeks of February, which were charged at a rate of $105 per hour; $55.81 was for out-of-pocket costs; and $5,852.50 was reported as a balance forward from a February 2007 invoice.

C. Appellant’s Agreement to Work for Bob

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Bluebook (online)
8 Cal. App. 5th 467, 213 Cal. Rptr. 3d 899, 2017 WL 527320, 2017 Cal. App. LEXIS 100, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leighton-v-forster-calctapp-2017.