Little v. Amber Hotel Co.

202 Cal. App. 4th 280, 136 Cal. Rptr. 3d 97, 2011 Cal. App. LEXIS 1628
CourtCalifornia Court of Appeal
DecidedDecember 22, 2011
DocketNo. B227518
StatusPublished
Cited by36 cases

This text of 202 Cal. App. 4th 280 (Little v. Amber Hotel Co.) 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
Little v. Amber Hotel Co., 202 Cal. App. 4th 280, 136 Cal. Rptr. 3d 97, 2011 Cal. App. LEXIS 1628 (Cal. Ct. App. 2011).

Opinion

Opinion

MANELLA, J.

Respondent James J. Little asserted claims against appellant Amber Hotel Company (Amber) for tortious interference with contract, [285]*285alleging that Amber impaired Little’s lien on an attorney fee award. Amber challenges the judgment in Little’s favor, contending that Little’s former client nullified the fee award through a settlement, and that the damages awarded to Little fail as a matter of law. We discern no reversible error and affirm.

FACTUAL AND PROCEDURAL BACKGROUND

A. Prior Action

In August 2004, Amber initiated a lawsuit against Frank Martini and his brother, Satanand Sharma, together with several businesses they controlled (collectively, the Martini parties).1 In the action, Amber asserted claims for breach of contract and fraud, alleging that the Martini parties failed to pay a broker’s commission owed to Amber in connection with the sale of a hotel. The claims were based in part on a listing agreement and a sales agreement, each of which contained an attorney fee provision.

In October 2004, Martini and Sharma hired Attorney Little to provide representation in the action. They executed a contract entitled “Retainer Fee Agreement and Attorney’s L[ie]n,” which provided in pertinent part: “Client agrees to pay Attorney $275.00 per hour, $175.00 per hour of which will be deferred by Attorney to be held as [a] lien and collected in full against any attomeyG fee award made by the Court in favor of Client at the conclusion of this case. In this regard, Client specifically acknowledges, agrees, gives and assigns to Attorney an attorney’s lien on any sum to which Client may become entitled to secure Attorney’s compensation for said deferred fees. Given that there exists a risk that Client will not be successful in this case (such that there is the further risk that Client will not be entitled to any attomeyG fee award), Client agrees that in the event there is an attorney[] fee award in favor of Client, Attorney is entitled ... to keep one hundred percent (100%) of any attomeyG fees awarded Client without deduction for the $100.00 discounted hourly rate to which Attorney is entitled .... Client agrees that if there is no recovery to which the above-referenced lien attaches Client remains responsible for the full amount of the deferred fees.”

Following a trial, on December 3, 2007, judgment was entered in favor of the Martini parties and against Amber on Amber’s claims. The judgment stated: “The court reserves jurisdiction to determine whether to award costs and to make an attorney fee award and, so, to determine the amount of that award.” After the trial court denied Amber’s new trial motion, Amber noticed an appeal from the judgment and postjudgment mlings on February 29, 2008.

[286]*286While the appeal was pending, on March 24, 2008, the trial court awarded the Martini parties $152,700 in attorney fees and $8,669.52 in costs. On May 9, 2008, the court amended the December 2007 judgment to include the awards for attorney fees and costs. Amber filed no separate notice of appeal from these awards.

Following settlement negotiations between Amber and the Martini parties, on June 11, 2008, notices were filed acknowledging satisfaction of the December 2007 judgment, as modified by the March 2008 fee award order. The notices stated: “The judgment creditor has accepted payment or performance other than that specified in the judgment in full satisfaction of the judgment.” On June 17, 2008, Amber abandoned its appeal.

B. Underlying Action

1. Complaint

On May 18, 2009, Little initiated the underlying action against the Martini parties and Amber.2 His complaint asserted claims for breach of contract and quantum meruit against the Martini parties, and claims for intentional interference with contract, constructive trust, and conversion against Amber. The complaint alleged the following facts: In mid-March 2008, after Little had secured the December 2007 judgment and applied for an award of attorney fees, he learned that the Martini parties and Amber were negotiating a settlement and informed them of his lien. Nonetheless, after the trial court issued the fee award, the Martini parties and Amber entered into a settlement under which Amber agreed to dismiss its appeal regarding the December 2007 judgment in exchange for Martini’s abandonment of the fee award. To hide the settlement, neither the Martini parties nor Amber served Little with the acknowledgments of satisfaction of the judgment.

2. Trial

The jury trial on Little’s claims occurred in June 2010.

a. Little’s Evidence

Little testified as follows: At the time of trial, he had been practicing law for 28 years. Sharma was among his first clients. When Martini and Sharma sought to engage Little, he advised them to seek independent legal advice with respect to the lien provisions of the proposed retainer agreement. [287]*287According to Little, he offered to defer a portion of his fees because Martini and Sharma had “cash-flow problems,” and he hoped that a fee award would provide an alternative source of payment for his fees. On October 14, 2004, Martini and Sharma executed the retainer agreement.

After Amber noticed its appeal from the December 2007 judgment, Little decided not to represent the Martini parties during the appeal, as his retainer agreement did not require him to do so, and the Martini parties lacked the funds to pay him for continued representation. However, when Little tried to withdraw his representation regarding the appeal, the appellate court informed him that he remained counsel of record.

In March 2008, after Little requested a fee award on behalf of his clients, Martini told Little that Amber had proposed to settle the action for $75,000. Martini also said that he intended to give Little one-third of the settlement funds. Little reminded Martini that his fee agreement contained a lien provision, told Amber’s counsel, Julian Pollok, that he had a lien against any fee award, and served formal notices of lien in the action. Later, Little learned that Martini was considering a settlement that encompassed the judgment and the Martini parties’ potential malicious prosecution action against Amber, but was assured that Martini “was protecting and preserving” Little’s attorney fees.

Little heard nothing more regarding settlement until June 2008, when the ' trial court sent him copies of the Martini parties’ acknowledgments of satisfaction of judgment, prepared by Pollok, and a copy of Amber’s dismissal of the appeal. No party served these notices upon Little, even though he was a counsel of record in the trial action and on appeal.

Little testified that as a result of the settlement, he was unable to recover $190,684.06 in fees owed under the retainer agreement, comprising the $152,700 fee award and approximately $37,984 in other unpaid fees. According to Little, Amber’s settlement with the Martini parties denied him the benefit of the fee award and prompted them not to pay his outstanding deferred fees. Little further stated that he sought to recover the $190,684.06 in unpaid fees solely from Amber because the Martini parties would not have breached the retainer agreement “but for the false representations made to them” by Amber.

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Cite This Page — Counsel Stack

Bluebook (online)
202 Cal. App. 4th 280, 136 Cal. Rptr. 3d 97, 2011 Cal. App. LEXIS 1628, Counsel Stack Legal Research, https://law.counselstack.com/opinion/little-v-amber-hotel-co-calctapp-2011.