Lewsader v. Wal-Mart Stores, Inc.

694 N.E.2d 191, 296 Ill. App. 3d 169, 230 Ill. Dec. 560
CourtAppellate Court of Illinois
DecidedApril 3, 1998
Docket4— 97—0460
StatusPublished
Cited by27 cases

This text of 694 N.E.2d 191 (Lewsader v. Wal-Mart Stores, Inc.) 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
Lewsader v. Wal-Mart Stores, Inc., 694 N.E.2d 191, 296 Ill. App. 3d 169, 230 Ill. Dec. 560 (Ill. Ct. App. 1998).

Opinion

PRESIDING JUSTICE GARMAN

delivered the opinion of the court:

Intervenor-appellant Bettye D. Kelso, administrator of the estate of Thomas R. Kelso (Estate), appeals from a May 9, 1997, order of the circuit court of Champaign County. The trial court found that the Estate had neither a valid statutory attorney’s lien (770 ILCS 5/1 (West 1996)) nor an equitable lien in the settlement proceeds in the matter of Lewsader v. Wal-Mart Stores, Inc., herein. The Estate has abandoned the argument that a valid statutory attorney’s lien exists and now argues only that Kelso’s agreement with the Lewsaders and his efforts on their behalf created an equitable lien on the settlement amount for which Wal-Mart Stores, Inc. (Wal-Mart), is liable. We reverse and remand to the trial court for further proceedings.

Plaintiff Ralph Lewsader was seriously injured on October 1, 1991, when he fell from a scaffold as he worked on the construction of Sam’s Club Discount Store in Champaign, Illinois. On December 23, 1991, Lewsader and his wife, Victoria, retained attorney Thomas R. Kelso of the law firm of Beckett, Crewell, and Kelso to represent them in the personal injury matter. Under the terms of the attorney-client agreements signed by Kelso and the Lewsaders on December 23, 1991, the firm was to receive “331/3% of any amount recovered by settlement, with or without court proceedings, or by final judgment of any court.” On September 20, 1993, Kelso filed a nine-count complaint on behalf of the Lewsaders in the circuit court of Champaign County naming the architect, general contractor, and Wal-Mart, the owner of the premises, as defendants. The contractor and Wal-Mart filed third-party complaints against Lewsader’s employer for contribution.

During the pendency of this matter, the firm dissolved and Kelso formed a new firm, Kelso and Associates. A letter dated December 19, 1993, informed the trial court that Kelso and Associates then represented the Lewsaders. No new attorney-client agreement was executed. Kelso settled Ralph’s workers’ compensation claim against his employer, which was dismissed by stipulation of all parties on May 23, 1995, and received $20,000 in legal fees for his services. In February 1996, he settled the Lewsaders’ claims with the general contractor for $300,000, for which his firm received $100,000 in fees. The trial court entered an order granting plaintiffs’ petition for a good-faith finding, pursuant to the Illinois Joint Tortfeasor Contribution Act (740 ILCS 100/1 et seq. (West 1996)), over Wal-Mart’s objections, on March 1, 1996.

Kelso also conducted discovery and prepared the case for trial. The volmninous record discloses that Kelso prepared and filed many motions and supporting memoranda. He opposed the motion for summary judgment in favor of the architect that was granted on January 14, 1994. He filed multiple motions for partial summary judgment (August 11 and October 6, 1995, and September 4, 1996) on certain elements of the Structural Work Act (see Ill. Rev. Stat. 1991, ch. 48, par. 59.90 et seq. (740 ILCS 150/0.01 et seq. (West 1992))) claim. He engaged in extensive discovery, including taking depositions, and responded to defendants’ discovery requests. In addition, on September 23, 1995, he filed a motion and memorandum seeking to bar Wal-Mart’s expert witness for failure to comply with Supreme Court Rule 220 (134 Ill. 2d R. 220). He had repeated correspondence with opposing counsel regarding alleged discovery abuses and on September 11, 1995, filed a motion to compel and a motion for sanetions. He also filed multiple motions dealing with jury instructions, use of demonstrative exhibits, voluntary dismissal of certain counts, and other matters.

Due to the congested condition of the trial court calendar, the November 1995 trial date was postponed. As of March 1, 1996, WalMart was the only remaining defendant. All work done by Kelso and his firm after that date related entirely to the pending litigation against Wal-Mart. After Wal-Mart became the sole remaining defendant, Kelso filed objections to the withdrawal of Wal-Mart’s counsel and a third motion for sanctions on August 1, 1996; a motion for partial summary judgment on September 4, 1996; and successfully opposed Wal-Mart’s September 11, 1996, motion to dismiss based upon the repeal of the Structural Work Act (740 ILCS 150.01 et seq. (West 1996)). However, the record is clear that much of the work done prior to that date related only to Wal-Mart.

Kelso died on September 29, 1996. On October 8, 1996, the Lewsaders entered into another attorney-client agreement with the Kelso firm and, on October 9, 1996, a member of that firm responded to Wal-Mart’s motion to continue the trial date from the November 1996 jury term to a later date. The Lewsaders then retained the law firm of Johnson, Frank, Frederick, and Walsh as counsel in this matter and, on October 10, 1996, Ralph informed the Kelso firm by letter that he was terminating their relationship with the firm. On October 22, 1996, the Kelso firm attempted to serve notice of an attorney’s lien on Wal-Mart.

The trial was reset for May 1997, and a court-ordered settlement conference was held on April 23, 1997. A settlement was reached. Under the terms of the agreement, Liberty Mutual Insurance Company (Liberty Mutual), Wal-Mart’s insurance carrier, was to pay the Lewsaders $300,000 in exchange for their complete release of all claims and dismissal of the action. On April 30, 1997, the Lewsaders filed a motion to bar the attorney’s lien and, on May 8, 1997, the Estate filed a petition for leave to intervene and a petition to enforce the attorney’s lien.

At the May 9, 1997, hearing, the Estate argued that Kelso was entitled to a portion of the proceeds of the settlement under two theories, a valid attorney’s hen pursuant to statute (770 ILCS 5/1 (West 1996)) and an equitable hen. The trial court ruled against the Estate on both theories and ordered that Wal-Mart and Liberty Mutual “tender the settlement check in this case payable solely to Ralph Lewsader, Victoria Lewsader and the Law Offices of JOHNSON, FRANK, FREDERICK & WALSH.” A settlement check in the amount of $300,000 was tendered by Liberty Mutual on May 15, 1997.

MOTION TO DISMISS

We first address the September 7, 1997, motion by Wal-Mart to dismiss it from these proceedings. Wal-Mart argues that it, through its insurance carrier, has fully complied with the valid trial court order of May 9, 1997, and that even if the Estate is successful in this appeal, Wal-Mart would not be liable for any amount awarded to the Estate. Wal-Mart also notes that the Estate did not seek a stay of the order pending this appeal.

In their brief, the Lewsaders offer support for this argument, stating that the entire matter is rendered moot by the disbursement of the settlement check. Citing the decision of our supreme court in In re Estate of Wellman, 174 Ill. 2d 335, 353, 673 N.E.2d 272, 280 (1996), they assert that, as a result of all settlement proceeds having been distributed, this court would be unable, in any event, to grant relief.

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Bluebook (online)
694 N.E.2d 191, 296 Ill. App. 3d 169, 230 Ill. Dec. 560, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lewsader-v-wal-mart-stores-inc-illappct-1998.