Lieberman v. Stollman

595 N.E.2d 8, 230 Ill. App. 3d 203, 171 Ill. Dec. 880, 1991 WL 273685, 1991 Ill. App. LEXIS 2151
CourtAppellate Court of Illinois
DecidedDecember 26, 1991
DocketNo. 1—90—2288
StatusPublished

This text of 595 N.E.2d 8 (Lieberman v. Stollman) 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
Lieberman v. Stollman, 595 N.E.2d 8, 230 Ill. App. 3d 203, 171 Ill. Dec. 880, 1991 WL 273685, 1991 Ill. App. LEXIS 2151 (Ill. Ct. App. 1991).

Opinion

JUSTICE McMORROW

delivered the opinion of the court:

Following a bench trial, the circuit court determined that defendant Paula Stollman (Stollman) owed plaintiff Kalman S. Lieberman (Lieberman) $22,000 in attorney fees for Lieberman’s handling of a commercial real estate transaction on Stollman’s behalf. On appeal, Stollman argues that the trial court’s determination that Lieberman’s services were reasonably valued at $22,000 was an abuse of discretion. Stollman also contends that the trial court erred in awarding Lieberman prejudgment interest, and in failing to direct that half of Lieberman’s fees are due from the estate of Stollman’s late husband.

Because we conclude that the evidence of record does not support the trial court’s determination that Lieberman’s handling of the commercial real estate transaction entitled him to fees in the amount of $22,000, we reduce the fee award to $11,515, which represents Lieberman’s out-of-pocket expenses, plus the hourly charge for his services according to the number of hours he expended on the commercial real estate transaction. We also reverse the award of prejudgment interest, and affirm the court’s entry of judgment against Stollman individually.

The evidence presented at the court’s bench trial of the parties’ dispute established that Stollman’s husband passed away on November 9, 1986, and Stollman retained Lieberman’s law partner, Howard Slater, to handle the probate of her late husband’s estate. When Slater became ill, Stollman contacted Lieberman on July 16, 1987, to represent her in the sale of commercial real estate owned by Stollman and her late husband. She informed Lieberman that she had received an offer of $825,000 for the property and that a contract would be forwarded to her shortly. Stollman advised Lieberman that she wanted to be very careful not to lose the offer because she was very interested in having the property sold. Lieberman told Stollman that he would handle the real estate transaction for a fee, and that it was necessary that he receive all documents as quickly as possible. Lieberman did not state a fee for this service, however, and Stollman did not inquire as to the amount Lieberman would charge for this legal representation.

On July 20 or 21, 1987, Lieberman received a sales contract from the broker of the proposed buyer. Finding numerous provisions that he believed inadequate, Lieberman discussed these matters with the broker. While searching through the files of his law partner, Slater, Lieberman found documents indicating that the property was in land trust and that the trustee had executed documents that deeded ownership in the property from the land trust to Stollman and her late husband. These documents had never been recorded, however. Lieberman returned the deeds to the land trustee so that the land trust could be reopened and the trustee could sign a contract for sale of the real estate. Lieberman also had discussions with the brokers and the tenant of the premises. In addition, he initiated investigation into the proper legal description of the property.

Lieberman learned from the brokers that there was a second potential buyer for the premises, and so advised Stollman. Stollman and Lieberman met at Lieberman’s home on July 23 to discuss this second buyer. Stollman directed Lieberman to negotiate a higher price for the property, if he could. Based upon this direction from Stollman, Lieberman had a series of discussions with the brokers that culminated in an offer from the first buyer to purchase the commercial property for $875,000. During this time, Lieberman also prepared a letter for Stollman’s signature directing the bank as land trustee to execute a sales contract. Thereafter, Stollman and her son, who was co-executor of the estate, signed the letter of direction at Lieberman’s home. On August 4, Lieberman took the letter of direction to the land trustee and obtained the trustee's signature on the real estate contract. In this document, the property was to be sold to the first buyer for $875,000.

Lieberman also continued to investigate documents at the Torrens office with respect to the precise legal description of the property involved in the transaction. He performed a Torrens tax search and discovered that certain taxes had not been paid, and obtained the necessary documents to remedy this deficiency. Thereafter Lieberman arranged for a survey of the property and prepared closing documents. Lieberman and the buyer’s attorney went through a mock closing to ensure that all documents were in proper order. Closing of the transaction was held on November 2 and 3, 1989, which Lieberman attended. On November 4, Lieberman received two checks for Stollman representing proceeds of the sale. His out-of-pocket expenses were $135, and the handwritten time sheets he offered at trial indicated that he had spent 45.66 hours on the real estate transaction.

On November 4, Lieberman contacted Stollman and advised her that his fee for the transaction was $22,000. Lieberman informed Stollman that he expected her to pay the fee immediately, and Stollman agreed. A few days later, Lieberman sent Stollman a fee statement for $22,000. Stollman responded in a letter to Lieberman requesting a breakdown for this fee amount.

Lieberman’s letter in reply advised Stollman that the $22,000 fee was based upon “the complexity of the matter that was involved, the number of hours that [he] had spent, the fact that [he] had alone increased the sale price *** and the fact that [he] had availed [himself] to [Stollman] at odd times by having [Stollman] come to [his] home to try to make things easier for [Stollman].” Lieberman also stated that his hourly charge was $250 per hour for “usual normal matters” and that the transaction had not been “a usual and normal matter.” Lieberman also stated in his letter that he had been practicing law continuously since 1946 and that he “specialize^] in real estate law, and [is] considered by other lawyers an expert in that field.”

Stollman refused to pay the $22,000 amount, and Lieberman filed suit against her to recover his fee. In his suit, Lieberman requested the $22,000 attorney fee based upon quantum, meruit (count I) and account stated (count II).

Lieberman testified that he has been licensed to practice law in Illinois since 1946, and has practiced law continuously during this time. His legal experience has been in the field of general practice and has included banking, real estate, and corporate work. Lieberman has been the attorney and director for a national bank and a savings and loan association.

Both parties presented expert witnesses at trial with respect to the reasonableness of Lieberman’s $22,000 fee. Lieberman’s expert, William Allen Nathenson, testified that based upon a hypothetical set of facts representing the work performed by Lieberman, it was his opinion “that the services were worth the $22,000.” No additional testimony was presented by Nathenson.

Stollman’s expert, Jack R. Hertz, testified that he had reviewed the documents involved in the real estate transaction. He said that, generally, an attorney advises a new client of his fee at the parties’ first meeting, and that the fee will be either an hourly rate or a flat rate based upon the attorney’s estimation of the number of hours involved. Hertz stated that in 1987, the usual hourly rate for attorneys in the Chicago metropolitan area for a senior partner in a law firm was approximately $150 an hour.

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Cite This Page — Counsel Stack

Bluebook (online)
595 N.E.2d 8, 230 Ill. App. 3d 203, 171 Ill. Dec. 880, 1991 WL 273685, 1991 Ill. App. LEXIS 2151, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lieberman-v-stollman-illappct-1991.